JTI Stresses Importance of Fiscal Stability for Canary Islands Tobacco Industry

The tobacco industry has become a cornerstone of the Canary Islands' economy. According to the multinational company JTI, the industry’s success depends on legal certainty and effective regional tax policies. JTI, which operates a production plant in Tenerife, stresses that its ability to keep working on the islands relies on the stability of the Economic and Fiscal Regime (REF) and tools like the Tax on Imports and Deliveries of Goods (AIEM).

Alejandra Corbera, JTI’s Head of Regulatory and Fiscal Affairs, notes that the current tax framework—in place for tobacco products since 2015—has helped make tobacco the islands' top export since 2013. For JTI, these tax incentives are essential. They help the company stay competitive with mainland manufacturers by offsetting the higher costs of energy and logistics caused by the islands' remote location.

JTI has shown a long-term commitment to Tenerife through consistent investment. Over the past decade, the company has invested more than 100 million euros in its local facilities, with another 20 million euros planned for the next two years. This investment has boosted the local job market, creating over 100 direct jobs since 2023, alongside significant indirect employment throughout its supply chain.

Beyond the numbers, JTI focuses on hiring local talent to drive competitiveness. This strategy has earned the company human resources certifications and supports a more resilient, diverse economic model for the Canary Islands. Ultimately, JTI maintains that for global companies to keep a productive presence in the archipelago, the local fiscal and regulatory environment must remain stable and up to date.