MEMORANDUM
TO: D. Bishop
cc D.S. Watterton
FRONI- Graham Burgess
DATE: 16 March. 1995
SUBJECT: 1995 KEY AREA PAPERS
At the 15th March BMB meeting, the Board agreed
-he Following with regard to your
draft 1995 Key Area Paper on Indirect Taxation
ofTcbacco Producs~-
1. The paper needs to make it clear that tobacco
taxation is primarily the
responsibility of the operating company and
7arTicularly of the GMNum'Cer
One (rather than BATCo HO). Could you please find
an approprare place to
make this point (e.g. section D. 1)
A
Paee Section C2: Please amend the phrase
appropriate to the B. T brand
mix...'(Iine two). to'-.. appropriate to the
cu7ent and future brand mix..
3 Paze 2. Section C6- Please amend the phrase' but
act with ...'(line one) to
' .- but act (where appropriate) with ...'
4. Page 3 Section D 1: The Board ernphasised -.he
importance of circulating to
Operating Companies the case srudies/lobbyira
arguments referred to in this
section.
5. Section 3 Page 7 (fifth inset oaraaraDh) Please
split the opening sentence of
this paragraph into two sentences i.e. 'Hl,-,h
tax3tion will ince-ricivise evasion. It
is essential to ..'
6 Section 3. Paae 8 (first substantive
caratzrach', This paragraph current!-,
reads -
'Although it can sometimes happen. 'It 3 most
unlikely that an Operating
Company will be in a position. where'l elects. to
absorb a part or all of
an increase in excise taxation'.
Could you please re-write this paragraph to convey
that the BATCo pol cy Is
that companies should not absorb such excise
:ncreases unless there are very
compe;ling reasons so to do.
7. Section 3 Paee 8 (second substantive oaraeraoh
re VAT)~ There wassorne
concern as to whether the imposition of VAT does
give manufacturers a degree
ofcontrol over retail prices. Could you please
review this point. Ifyou still
believe it is correct could you propose some
re-vording (even if it is onlv'
gives manufacturers a greater degree of contrcl
BATCo document for Province of BritiSh Columbia 23
April 1999
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C-1
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8. Section 4 re Excise Collection: The last part
ofEhe first paragraph (page 9)
refers to getting governments to carry the risk
ofbad debts. Whilst the Board
would like to see such a situation, it was felt
that it is highly unrealistic to
expect this to happen. Could you please review
this e.g. are you referring to a
very particular situation, such as the bad debts
of a (quasi) official body.
9. Confidentialirw Does your Key Area Paper really
need to be classified as
'Secret"? This is not the case with the other Key
Area Papers. which are
'Restricted'. ('Secrei'means that the recipient
cannot show it to anyone else
without your explicit prior approval, whereas
Restricted' means that whilst the
paper is confidential the recipient can use
his/her discretion as to whether or
noE to show it to other people).
C3 uld you please 1e! me have an amended version
ofthe Key.-Vea Pape- Friday
Z4 th March.
Thanks
C;
rll~
CY,
CD
BATCo document for Province of BritiSh Columbia 23
April 1999