The Nairobi Securities Exchange-listed firm declared an interim dividend of Sh3.5 per share, same as for the previous year.
The company says its sales fell due to excise tax increments over the years, adding that this has also eroded taxes paid to the government.
BAT appears to refer to previous excise tax increments since the latest one effected in the current financial year left the rate unchanged for cigarettes with filters and lowered it for plain sticks.
British American Tobacco Kenya #ticker:BAT has reported a 9.3 per cent drop in net profit in the half year ended June, weighed by lower sales.
The company made a net profit of Sh1.9 billion in the period compared to Sh2.1 billion a year earlier as sales declined 9.6 per cent to Sh17.1 billion.
The Nairobi Securities Exchange-listed firm declared an interim dividend of Sh3.5 per share, same as for the previous year. The company says its sales fell due to excise tax increments over the years, adding that this has also eroded taxes paid to the government.
“Contribution to government revenues in the form of excise duty, VAT (value added tax), pay-as-you-earn and corporation tax reduced by Sh640 million to Sh9.2 billion,” BAT said in a statement. “This was driven principally by a reduction in domestic volumes as the effect of higher excise duty rates continues to be felt.
“We continue to engage with relevant stakeholders on the importance of reasonable tax increases to protect both government and industry revenues.”
BAT appears to refer to previous excise tax increments since the latest one effected in the current financial year left the rate unchanged for cigarettes with filters and lowered it for plain sticks.
