Brazil's biggest tobacco company Souza Cruz sees shares climb 3.1% after Brazil announces minimum cigarette prices will be set next week, ending tax evasion opportunities by smaller companies
August 4, 2011
– Brazil’s biggest tobacco business Souza Cruz SA saw its shares rise with the government’s announcement that minimum prices will be set for cigarettes, Bloomberg reported August 3.
The government decision attempts to stop smaller tobacco companies from evading taxes by selling their products at cheaper rates, according to SLW Corretora analyst Caue Pinheiro.
The shares rose a total of 3.1% to 17.82 reais (US$11.32) by the end of trading on August 3.
A cigarette prices decree will be released sometime next week.
The primary source of this article is Bloomberg, New York, New York, on August 3, 2011.