Trump's tax cut to lower rate for British American Tobacco | Fin24
 
  • Credit Rating

    Moody's has (again) said that weak state-owned entities are a risk to SA's sovereign credit rating.

  • SARS Inquiry

    Judge Nugent has recommended the president sack suspended SARS boss Tom Moyane.

  • Nene Rand Rollercoaster

    Simon Brown says savvy investors worked out how the rand would react to uncertainty at Treasury.

Loading...

Trump's tax cut to lower rate for British American Tobacco

Jan 09 2018 12:08

(iStock)

Company Data

BRITISH AMERICAN TOBACCO PLC [JSE:BTI]

Last traded 602
Change -24
% Change -4
Cumulative volume 1593407
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

BAT plans to expand next generation products business in SA

BAT expands in SA with vape deal

BAT SA expands R50m emerging farmer initiative

Illicit ciggies smoke out tobacco farmers

 

Cape Town - JSE-listed British American Tobacco [JSE:BTI] on Tuesday announced that its effective tax rate was set to decrease following the passage of US Tax Cuts and Jobs Act.

The major tax reform plan was signed into law by US President Donald Trump in late December 2017. 

BAT is one of the largest companies listed in the JSE by market capitalisation. It has its primary listing on the London Stock Exchange. 

BAT said while the passage of the act, which has been criticised for giving tax breaks to the wealthy, would not affect its underlying tax rate for the year ended 2017, it anticipates benefiting from a “non-cash exceptional tax credit as a result of the revaluation of deferred tax balances arising from the acquisition of Reynolds American”.

It did not say what the credit would amount to. 

BAT said it is expecting a lower effective tax rate for 2018, which in 2017 stood at "around 30%".

“For the year to December 31 2018 we currently anticipate that the changes will reduce the group’s effective tax rate percentage to the high twenties,” it said in a note to investors on Tuesday morning.

“All other things being equal, this would result in a benefit of 6% to full-year 2018 earnings per share, supporting our commitment to high single digit earnings growth and increased investment in the roll-out of next generation products.”

At 11:30 on Tuesday, BAT shares were trading at R836.80 on the JSE, up 0.8% on the day. 


* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

british american tobacco  |  shares  |  jse  |  tax law
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The appointment of Tito Mboweni will:

Previous results · Suggest a vote

Loading...