Me jammin with Jeff Healey
The ad valorem tax structure could worsen the impact, as higher prices feed back into higher taxes, analysts said.In recent years, stable taxation had supported cigarette volume growth of around 5% CAGR over five years, while the illicit cigarette markets share declined by roughly 150 basis points, according to Motilal Oswal
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Even personal-use quantities can be confiscated
Menthol smokers who opt for the nicotine-free smokes wont make up the volume difference of what will be removed because of the ban, but even retaining 10% of those customers could easily create a billion-plus dollar business, he explained
The companies value the deal at about $27 billion including debt