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Ciggie maker says price hike can impact revenues

Written by Charlina Tone
Wednesday, 09 April 2008
3% rise in cost of cigarettes The General Manager of British American Tobacco, Adam Bookless says the 3% increase in the price of cigarettes could have an adverse impact on Government revenue. BAT which is the sole producer of cigarettes in Samoa says the impact of the price increase on sales is ‘manageable’ however it is the impact on the industry that could be a concern. Bookless said the price increase is inevitable. “The affect of reasonable price increases such as this, which is 3% on sales is manageable, it is the larger increases above inflation which can impact on industry viability and government revenue.” Bookless says that such price increases are normal and unavoidable as they become effective based on inflation. “It is inevitable that prices will increase, due to local and international inflation impacting the industries operating costs,” the General Manager said. Pall Mall is currently the only locally produced cigarettes in Samoa since the phasing out of Rothmans some years ago. Comments (0) Subscribe to this comment's feed Write comment Name Email Title Comment

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