Tax reform harms legal tobacco trademarks
By Guy José Bendaña-Guerrero & Asociados

Such change has generated concern on the tobacco industry, who warn about the decrease of their products market and the “logical” increase of smuggling and counterfeited products. Gustavo Mercado, External Affairs Manager for British American Tobacco, said to La Prensa that the company has yet to quantify specifically the impact of the reform, but early reports suggest that just in March consumer consumption of their cigarettes fell between 50 and 55 percent.
Carmen Hilleprand, president of the Chamber of Commerce and Services of Nicaragua (CCSN), offered a broader perspective of the market. “Until February mainly two brands of counterfeited cigarettes operated in the Nicaraguan market, while today there are over 12 already unfairly competing with legal tobacco companies, who since the reform are paying up to 210 percent more taxes”.
