BAT Uzbekistan JSC inks contract to export cigarettes to Kyrgyzstan
Tashkent, Uzbekistan, Jan. 22
By Mamed Dashdemirov – Trend:
British American Tobacco (BAT) Uzbekistan, a monopoly tobacco products manufacturer in Uzbekistan, has signed a $2.8 million worth contact on export of cigarettes to Kyrgyzstan, BAT Uzbekistan told Trend.
A branch of British American Tobacco Kazakhstan Trading in Bishkek, a retailer of the tobacco product in domestic market, will act as a recipient of Kent and Rothmans brand cigarettes in Kyrgyzstan, BAT Uzbekistan added.
British American Tobacco Uzbekistan was founded in 1994 when British tobacco company bought 51 percent of the shares of Uztabak corporation. This share was brought up to 97,383 percent in the subsequent years. The remaining 2,604 percent belongs to Uzbekozikovkatholding.
Tobacco for cigarettes is produced in Uzbekistan in the volume of about 1,200 tons of fermented tobacco leaf of solar, turbo-fire and steam-air drying. Tobacco, including the Virginia sort, is grown on 35.2 hectares, and it is planned to double production in upcoming five years.
Some of materials, including wrapping foil, polypropylene wrapping film, paper and filters for cigarettes are purchased from related enterprises operating in other countries. A $1 million worth of contract on paper and filters supply was signed in early January, 2018 with BAT Saint Petersburg.
BAT Uzbekistan had losses worth 969 billion soms in January to September 2017 as compared to a net profit of 241 billion soums for the same period of the previous year. At the end of 2016, the net profit of the company increased by 8.4 percent to 325 billion soums.
The average annual tobacco market of Uzbekistan makes up 17 billion cigarettes, around 90 percent of which accounts to BAT Uzbekistan. The rest of the tobacco products are smuggled into the country from Kazakhstan, Kyrgyzstan and Tajikistan due to high tax excises.
British American Tobacco, which is the second largest tobacco company in the world after Philip Morris, was established in 1902 as a joint enterprise of British Imperial Tobacco Company and American Tobacco Company. It owns 45 cigarette factories in 39 countries, including cigarette factories operating in St. Petersburg and Saratov, Russia.
Tax excises for certain tobacco products in Uzbekistan has been increased by 2.2 times from 37,400 soums per 1,000 cigarettes to 84,200 soums.
The rate of excise tax on imported cigarettes in Uzbekistan makes up 50 percent of their contract value. The tax does not apply to individuals bringing in up to 10 packs of cigarettes into the country in a single time.
Official rate of the national currency was 8,146.38 UZS/USD on Jan. 22.