Apr 2017 Financial News

Witco CEO: Illegal cigarettes hurting Treasury

Apr 10, 2017

WITCO Managing Director Jean-Pierre du Coudray says that the influx of illegal cigarettes into the domestic market is having a negative impact on the local industry.

“We continue to see an increase in cheap and poor quality products entering the market, mostly from Asia/Middle East. Many of these brands seem to have little or no quality controls in place and this is evident in the composition of these products. We have been able to identify feathers, insect carcasses, plastic synthetic material, grit and droppings and the list goes on,” du Coudray said as he delivered his remarks at the company’s 112th Annual Meeting at the Hyatt Regency Hotel in Port-of-Spain.

The Witco executive called on Finance Minister Colm Imbert to stay true to his commitment to treat with the increasing entry of illegal products.

He said: “More importantly for the Minister to consider is whether he collected taxes from all players in the market. The minister did indicate in the 2016/2017 budget speech an increase in illegal products in the market and promised strong legislation and enforcement. Unfortunately, we have not seen any major developments in this area.”

Du Coudray noted that the company’s 3.3 per cent year on year decline in revenue from 2015 to 2016 was the result of the “perfect storm” of factors coming together.

“Last year was a year of economic uncertainty and I thought 2015 was the toughest year I had managed in the company. The challenges continued into 2016, and at this stage I see no immediate change to this outlook as we were impacted through increases in corporation tax and excise tax, the average consumer battled for value for their money, consumers battled to enjoy themselves safely at night, our factory battled to remain competitive in the Caricom context and creative entrepreneurs battled for opportunities to survive - some with no regard to quality and trade rules,” du Coudray said.

Commenting further on Witco’s revenue contraction, du Coudray noted that he believed that the industry as a whole did not shrink.

Source:
?ANDRE WORRELL
Trinidad Guardian
Saturday April 8, 2017

http://www.guardian.co.tt/business/2017-04-08/illegal-cigarettes-hurting-treasury