BAT makes 14 pc net profit
According to the financial statement, BAT’s tax liability reduced by Sh2 billion to Sh16 billion on the back of the temporal reduction of corporation tax and value added tax (VAT) and lower sales volumes.
Even so, the firm’s revenues reduced by two per cent to Sh38.8 billion with its domestic sales slumping by 24 per cent from effects of the COVID-19 pandemic.
The fall in local sales was however mitigated by higher export sales in the period.
“Last year saw our domestic performance take a significant hit, with volumes declining by 24 per cent, as consumers responded to affordability challenges resulting from the impacts of Covid-19 by flocking to the illicit market, ‘BAT MD Crispin Achola said.
He decried illicit trade in the sector, saying counterfeit products continue to significantly impact industry revenues and deny Government in excess of an estimated Sh4 billion per annum in revenue.
As a result, and despite significant excise increases in 2020 (five per cent )and 2019 (20 per cent), tax payments to the exchequer were down by 11 per cent on the back of lower volumes.
The firm is however optimistic about the future, hoping to a better post Covid-19 performance.