Tax problems force Kama to sell Bulgarian investment

Polish vegetable oil producer Kama Foods S.A. has sold its stake in Kalakra Dobricz the biggest Bulgarian sunflower oil and margarine producer. Kama vice-president Robert Mucha said the reason for the hasty operation was Kama 's problems with the tax office. The firm decided to dispose of the stake after the tax office said it was not allowed to deduct managing costs from the operating costs which would have increased their tax burden. " We deeply regret the action. It was a good investment," said Mucha. The deal was clinched with a British company registered in Cyprus who purchased Kama's majority stake for $2.6 million. The authorities of White Eagle Industries which Kama Foods is a part of, says it is not going to completely abandon the Bulgarian market and is already planning new investments. (Rzeczpospolita, page B3) J.K