Laos: Imperial Tobacco Criticised over Tax Deal

Source from:  Tobacco Journal International  10/08/2014

Health campaigners have criticised Imperial Tobacco over a tax deal that was struck with the Laos government in 2001, accusing the tobacco company of depriving Laos taxpayers of tens of millions of GBPs, the Guardian has revealed.
 
The agreement, seen by the Observer, was signed in 2001 between an Imperial-led consortium and the Laos government. It is expected to last until 2026.

Under the terms of the agreement, the consortium pays between 15 and 30 per cent tax on its products, while the standard rate in the country is 55 per cent. It also states that the consortium may negotiate with the government of Laos "from time to time, preferential taxes and duties for the importation of cigarettes and other finished tobacco products."

Anti-smoking groups have accused tobacco companies of trying to keep taxes low in the growth markets of Asia in a bid to make tobacco products more appealing to young smokers. Enditem