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BAT is Romania’s biggest taxpayer: almost 11 billion lei paid by BAT to the state budget in 2021

13 April 2022

BAT paid almost 11 billion lei to the state budget in 2021
BAT remains Romania’s biggest taxpayer for the second year in a row
Company has been on a transformation journey to A Better Tomorrow™ putting sustainability front and centre

Bucharest, 24.02.2021 – BAT was Romania’s biggest taxpayer in 2021, with a total contribution of almost 11 billion lei (€2,2 billion) in excise and taxes to the state budget, an increase of over 10% versus 2020. BAT is also one of the top exporters of agricultural products processed in Romania, with over 60% of the volumes produced in Ploiești, cigarettes and tobacco heating consumables, being exported to tens of other countries from across the world. BAT employs over 3.000 people in Romania and creates another 30.000 jobs through its supply and distribution chain.

BAT is the largest player on the tobacco market, with a market share over 50% and one of the leading investors in Romania. The taxes paid by BAT to the state budget have increased yearly. Out of 20 legally sold cigarettes, 12 stand for the excise duty, 4 for VAT, and the rest make for the manufacturer and seller’s income. Almost 80% of the price of a pack of cigarettes is directed towards the state budget.

„During its 25 years of activity on the local market, BAT has made an important impact on the Romanian economy. Tobacco has always been a significant contributor to the state budget, and we are glad not only that we remained Romania’s largest taxpayer, but we raised our contribution in 2021 by approximately 1,25 billion lei versus 2020. We are committed to continue our investment in Romania and to build A Better Tomorrow, which includes reducing the health impact of our business and delivering sustainable long-term value in the Romanian economy. And for that we need fair and balanced excise regime across all nicotine products that can enable sustainable revenues for the state budget and predictability for the industry and the consumers”, said Fred Monteiro, CES Area Director, BAT.

BAT is a strategic investor in Romania. The company’s total investments in its Ploiești factory have surpassed the €500 million threshold since 1996. Also, BAT invests over €1 million every year in the Romanian art and culture, supporting some of the biggest music and cultural events in Romania.

ESG is at the heart of our strategy and corporate purpose and is delivering sustainable growth, encouraging more consumers to transition to reduced risk products* and reducing the impact of our business. The company is on track to achieve our other ESG targets, including carbon neutrality from our operations by 2030.

About BAT

BAT is a leading, multi-category consumer goods business with a purpose to build A Better Tomorrow™ by reducing the health impact of its business through offering a greater choice of enjoyable and less risky products for adult consumers.

The company continues to be clear that combustible cigarettes pose serious health risks, and the only way to avoid these risks is not to start or to quit. BAT encourages those who would otherwise continue to smoke to switch completely to scientifically-substantiated, reduced-risk alternatives*† . In order to deliver this, BAT is transforming into a truly consumer-centric multi-category consumer products business.

BAT’s ambition is to have 50 million consumers of its non-combustible products by 2030 and to generate £5billion of New Categories revenue by 2025. BAT has set stretching ESG targets including achieving carbon neutrality for Scopes 1 & 2 by 2030 and eliminating unnecessary single-use plastic and making all plastic packaging reusable, recyclable or compostable by 2025.

BAT employs over 53,000 people and operates in over 180 countries. The BAT Group generated revenue of £25.68 billion in 2021 and profit from operations of £10.2 billion.

The company’s Strategic Portfolio is made up of its global cigarette brands and a growing range of reduced-risk* New Category tobacco and nicotine products and traditional non-combustible tobacco products. These include vapour, tobacco heating products, modern oral products including tobacco-free nicotine pouches, as well as traditional oral products such as snus and moist snuff. In 2021, we had 18.3 million consumers of our non-combustible products, a rise of 4.8 million on the year before.

* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.