Coca-Cola plans to withdraw 200 Million US Dollar earlier announced investment due to bleak country future

Dunkin Donut

Senator (1k+ posts)
M/s Coca-Cola Beverages Pakistan Limited (CCI Pakistan) has reportedly threatened to withdraw its new investment of $ 200 million planned in three years, saying that business environment is beginning to look bleak and uncertain, well-informed sources in Prime Minister's Office told Business Recorder.

This has been conveyed by Ahmet Kursad Ertin, General Manager, Coca-Cola Beverages Pakistan Limited, in a letter to Prime Minister Imran Khan. The CCI met with Prime Minister in November 2018 and shared its new investment plan with him. CCI Pakistan is one of the most compliant companies operating in Pakistan and has already invested upwards of $ 500 million since 2008.

The Coca-Cola team held a meeting with the Ministry of Finance during which it was unveiled that the following measures are being introduced in the upcoming budget proposals: (i) increase in the FED on CSDs to 12 per cent; (ii) health levy of Rs 1 per 250 ml of sugar sweetened beverage; and (iii) new FED on 10 per cent on juices.

The company says that these proposals for new taxation are inconsistent with the messaging it received from senior members of the government recently. In specific reference to the health levy, the company is assured that the discussion was off the table and that the industry would be given the opportunity to invest and grow.

"With regards to our future plans in the region, we have reiterated our commitment to bring more investment to the country based on reassurances given by the government, however, in the light of recent developments, the business environment is beginning to look bleak and uncertain," Artin added.

Expressing deep concern regarding recent proposals for new taxes on his company, he said that imposition of these taxes will not only halt the company's planned investment in the country but will also make its existing business unsustainable, thus resulting in the closure of its plants and a consequent loss of hundreds of jobs.

The overall tax rate for carbonated soft drinks in Pakistan is one of the highest in the region. The industry has no further capacity to absorb any increased costs. Given the price sensitive nature of the industry, a price increase will most certainly lead to a decline in our sales thus resulting in reduced tax revenue collected by the government.

"The existing tax rate of 28.5 per cent (11.5 percent FED and 17 per cent sales tax) coupled with steep rise in inflation, has already had a negative impact on our sales and revenue.

A water charge of Rs 1 per litre of water extracted has already been introduced by the Supreme Court which has eroded our profitability to an alarming level...if the proposed health levy along with increase in FED is passed, the burden of revised 40 per cent tax regime will seriously challenge our sustainability as a business," he continued.

General Manager CCI Pakistan further stated that taxation regime being proposed for the beverage industry will be counterproductive to the government's agenda of increasing revenue in both the short-term and long-term.

Coca-Cola Beverages Pakistan Limited has requested the Prime Minister to reconsider the proposed taxes as fate of the beverage industry depends on his decision.

https://fp.brecorder.com/2019/06/20190605483797/

Copyright Business Recorder, 2019
 
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Dunkin Donut

Senator (1k+ posts)
Bureaucracy WINS
Bureaucracy WINS
Bureaucracy WINS

Bureaucracy is always like this

its the Govt that is expected to manage and control this horse and implement its policy to achieve desired objectives for the welfare of public


these soft drinks are unhealthy and in western countries nobody drink them apart from the illiterate and small kids as part of mcdonald menu.


Earlier in November Asad Umar and Prime Minister met CEOs of Coca Cola and Pepsi and celebrated both company's' massive planned investments in Pakistan.

Once cant have both ways, all the times

KO_meetingPM1.rendition.940.456.jpg

Prime Minister with Senior Coca-Cola Leadership (Nov, 2018)


Coca-Cola’s Delegation calls on Prime Minister Imran Khan, reaffirms investment plans and requests support to remove hurdles for investors

Pepsi and Coca Cola pouring $1.4 bln into Pakistan - government
 
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home!

Councller (250+ posts)
This is what happen when everyone become economy expert on media show predicts doomsday to the world every next day. No long term economic management and planning.

And thanks to IMF
 

Dunkin Donut

Senator (1k+ posts)
This is what happen when everyone become economy expert on media show predicts doomsday to the world every next day. No long term economic management and planning.

And thanks to IMF

I really doubt that such a big company will make such a big decision only on the basis of few big mouths on media predicting doomsday who are otherwise known to have vested interests.

Upcoming govt-judicial-army crisis is sufficient to warn any amateur investor to hold on to its investments
 

sab_tamasha_hai

Minister (2k+ posts)
I really doubt that such a big company will make such a big decision only on the basis of few big mouths on media predicting doomsday who are otherwise known to have vested interests.

Upcoming govt-judicial-army crisis is sufficient to warn any amateur investor to hold on to its investments
Well don't tell me that all of a sudden they are realizing bleak future. Companies like Coca Cola take years before investing. Multiple feasibility studies are prepared. There is more to this
 

home!

Councller (250+ posts)
I really doubt that such a big company will make such a big decision only on the basis of few big mouths on media predicting doomsday who are otherwise known to have vested interests.

Upcoming govt-judicial-army crisis is sufficient to warn any amateur investor to hold on to its investments

This is call public perception. If the people of Pakistan themselves are not confident on the economy, then whole will invest.

it is exactly the same way. that if a Intelligence Chief's family going to see a boy for marriage to their daughter (where chief did all the background check about the boy and they are fully satisfied with the boy) and the family members boys start criticizing. The boy is very nice but sometime smoke weed, he is awesome chap but he play gambles. do you think they goona marry their daughter with such boy?
 

Dunkin Donut

Senator (1k+ posts)
Well don't tell me that all of a sudden they are realizing bleak future. Companies like Coca Cola take years before investing. Multiple feasibility studies are prepared. There is more to this

True for countries where govt's are not prone to a total fall from grace to disgrace repeatedly all at the point of a gun
 

disgusted

Chief Minister (5k+ posts)
Its fantastic news. Soft drinks cause a massive damage to health. Let investments in basic industries come and will always be welcome.
 

shapik

Senator (1k+ posts)
Bureaucracy is always like this

its the Govt that is expected to manage and control this horse and implement its policy to achieve desired objectives for the welfare of public





Earlier in November Asad Umar and Prime Minister met CEOs of Coca Cola and Pepsi and celebrated both company's' massive planned investments in Pakistan.

Once cant have both ways, all the times

KO_meetingPM1.rendition.940.456.jpg

Prime Minister with Senior Coca-Cola Leadership (Nov, 2018)


Coca-Cola’s Delegation calls on Prime Minister Imran Khan, reaffirms investment plans and requests support to remove hurdles for investors

Pepsi and Coca Cola pouring $1.4 bln into Pakistan - government
It’s about time consumer industry should b taxed instead of taxing export industry..... these foreign blood sucking parasites were making money on water free of taxes without any benefit to the country and impacting the environment .
These luxury consumption items should be taxed and taxed burden should be reduced from export oriented industries e.g textile
 

cayanide

Senator (1k+ posts)
PTI fan boys be like nahin chahiye Coca Cola we will drink pakola, every lost opportunity is made to look like a victory stage for PTI fan club currently rupee is at it's lowest level against dollar nahin chahiye dollar support local products but still their leader drives around in imported cars and uses iPhone Samsung to communicate what a pathetic bunch
 

Salazar67

Chief Minister (5k+ posts)
M/s Coca-Cola Beverages Pakistan Limited (CCI Pakistan) has reportedly threatened to withdraw its new investment of $ 200 million planned in three years, saying that business environment is beginning to look bleak and uncertain, well-informed sources in Prime Minister's Office told Business Recorder.

This has been conveyed by Ahmet Kursad Ertin, General Manager, Coca-Cola Beverages Pakistan Limited, in a letter to Prime Minister Imran Khan. The CCI met with Prime Minister in November 2018 and shared its new investment plan with him. CCI Pakistan is one of the most compliant companies operating in Pakistan and has already invested upwards of $ 500 million since 2008.

The Coca-Cola team held a meeting with the Ministry of Finance during which it was unveiled that the following measures are being introduced in the upcoming budget proposals: (i) increase in the FED on CSDs to 12 per cent; (ii) health levy of Rs 1 per 250 ml of sugar sweetened beverage; and (iii) new FED on 10 per cent on juices.

The company says that these proposals for new taxation are inconsistent with the messaging it received from senior members of the government recently. In specific reference to the health levy, the company is assured that the discussion was off the table and that the industry would be given the opportunity to invest and grow.

"With regards to our future plans in the region, we have reiterated our commitment to bring more investment to the country based on reassurances given by the government, however, in the light of recent developments, the business environment is beginning to look bleak and uncertain," Artin added.

Expressing deep concern regarding recent proposals for new taxes on his company, he said that imposition of these taxes will not only halt the company's planned investment in the country but will also make its existing business unsustainable, thus resulting in the closure of its plants and a consequent loss of hundreds of jobs.

The overall tax rate for carbonated soft drinks in Pakistan is one of the highest in the region. The industry has no further capacity to absorb any increased costs. Given the price sensitive nature of the industry, a price increase will most certainly lead to a decline in our sales thus resulting in reduced tax revenue collected by the government.

"The existing tax rate of 28.5 per cent (11.5 percent FED and 17 per cent sales tax) coupled with steep rise in inflation, has already had a negative impact on our sales and revenue.

A water charge of Rs 1 per litre of water extracted has already been introduced by the Supreme Court which has eroded our profitability to an alarming level...if the proposed health levy along with increase in FED is passed, the burden of revised 40 per cent tax regime will seriously challenge our sustainability as a business," he continued.

General Manager CCI Pakistan further stated that taxation regime being proposed for the beverage industry will be counterproductive to the government's agenda of increasing revenue in both the short-term and long-term.

Coca-Cola Beverages Pakistan Limited has requested the Prime Minister to reconsider the proposed taxes as fate of the beverage industry depends on his decision.

https://fp.brecorder.com/2019/06/20190605483797/

Copyright Business Recorder, 2019
Good.. Sugar GIVES diabetes. Tell coke to get the F out of Pakistan.
F the Jew owned company.
 

back to the future

Chief Minister (5k+ posts)
Black economy black economy the buzz word which is used most commonly nowadays.
Well black economy is doing this and doing that
and the black economy businessman have withdrawn investment not coming forward not paying taxes etc etc

Well there are steps eg one step not allowed to purchase certain things if not tax payers but then there is exception that they become nominal tax payers
Only thing which comes to my mind is for FBR to have data operators to compare different bills of a person and to allot a unique number based on his CNIC No and collect information about his transactions under this number and the assess his income and expenses
There is no other way
 

cayanide

Senator (1k+ posts)
Good.. Sugar GIVES diabetes. Tell coke to get the F out of Pakistan.
F the Jew owned company.
The why is your leader driving around in these Jewish made cars and using their equipment use Qmobile and Mehran, bolan to roam around ?
 

Salazar67

Chief Minister (5k+ posts)
The why is your leader driving around in these Jewish made cars and using their equipment use Qmobile and Mehran, bolan to roam around ?
Pathetic idiotic retort by a mental SLAVE. Get some education you son of a Brothel owner.

Wow the moon the son the earth all were made by the Jews? Mother effing pimps.

My LEADER is sincere to Pakistan loves Pakistan.. Has not raped Pakistan like YOUR illiterate degenerate prostitute Nawaz Jahil lohaar and his filthy daughter.

History 101 Henry Ford was not a JEW. You ignorant dumb F.

Fortunately, human beings learned to use animals such as donkeys, horses and camels for transportation from 4000 BC to 3000 BC. In 3500 BC, the wheel was invented in Iraq and the first wheel was made from wood.
 
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insouciant

Minister (2k+ posts)
They are lobbying to make the government withdraw the newly proposed taxes. It's a standard tug of money between government and corporations! There is nothing illegal about this sort of blackmailing. Every corporation does it, everywhere in the world! Let's see who comes out victorious.

The government should leave this on Razzaq Dawood and Asad Umer to deal with. They've themselves been on the other side. So they'd know how to get the best deal out!

Well don't tell me that all of a sudden they are realizing bleak future. Companies like Coca Cola take years before investing. Multiple feasibility studies are prepared. There is more to this