MANILA, Philippines – Cigarette manufacturer Mighty Corp. has paid an excise tax of P8 billion for the year 2013, a quantum leap from the modest P300 million it shelled out the previous year.
Oscar Barrientos, Mighty Corp. executive vice president said the tax payment for last year should put to rest false accusations that their company has not been paying its correct duties and taxes.
“The tax we paid for the year 2013 reflects the jump in our market share and our fair share in the increased taxes on “sin” products during last year,” said Barrientos, a retired regional trial court (RTC) judge.
He pointed out that despite charges in the news media and by some members of Congress against the company for non-payment of taxes, no case has been filed in court.
In fact, Barrientos pointed out, the BIR and the Bureau of Customs have cleared his company of any tax deficiency until February of this year.
The company paid P300 million in 2012, the former judge explained, when its share of the local market of cigarette was a measly three percent. However, their market share shot up since the government put into effect Republic Act 10352, otherwise known as the new sin tax law.
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The said law has synchronized a five-year adjustment of taxes on cigarettes for it to become a uniform P30 per pack in five years, covering all brands.
BIR records shows that excise taxes from both cigarettes and alcohol products increased by 81.5 percent, this despite a decline in the number of cigarette sticks sold. Total tax-take from January to November hit an all-time high of P91.6 billion from P60.4 billion in 2012.
Taxes from cigarettes represented 61.6 percent or almost two thirds of sin tax collections for 11 months, the records showed.
Mighty Corp., which until the year 2012, was a minor player, pitched in more than P8 billion of the excise tax, not to mention the income tax the company will have to pay for the same year come deadline time.
