Carreras unlikely to meet revenue target

Carreras says it's unlikely that the Government will meet its revenue target from the tax on tobacco products this fiscal year and has placed blame  on the tax affecting the affordability of  cigarettes and subsequently sales.
According to company officials,  the Government had announced that revenues from tobacco would increase by J$826 million this fiscal year with the hike in the Special Consumption Tax from $14  to $17  per stick of  cigarette.
However, the company says based on actual volume performance up to December last year it is evident that the Government's revenue target will not be achieved.
Carreras says the Government is on track to collect one billion dollars less than its collection in 2016/2017 which taken together is an overall reduction of  $1.826- billion compared to its projections.
Meanwhile, the cigarette tax affected Carreras financial performance for the April to December period.
It earned total operating revenue of $ 9.53 billion and $2.5 billion  in net income which were both down ten per cent when compared to the prior year.
Carreras experienced a decline in sales volume since the increase in the tobacco tax.
The company says legal sales volume lost is being channelled directly to the illicit trade which continues to expand as a result of  continuous tax increases.

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