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LA Suerte Cigar & Cigarette Factory, the local
partner of United Kingdom-based British American Tobacco (BAT),
wants to withdraw its Pall Mall cigarettes from its warehouse at a
lower tax rate so it can replenish inventory in the market.
An official said the company is
asking the Bureau of Internal Revenue (BIR) to allow the withdrawal
of Pall Mall cigarettes at an excise tax rate of P6.74 a pack.
The official said the Department
of Finance (DOF) however has to resolve first the request for
reconsideration filed by several cigarette manufacturers seeking to
reverse the ruling that granted a lower tax rate on Pall Mall
cigarettes.
Given this, the company should
first pay the higher rate of P26.6 a pack as stated in the ruling
issued by former BIR commissioner Jose Mario Bunag on February 22.
The official said the company is
unwilling to “pay under protest” just so it can replenish the
market, citing the difficulty of getting a refund from the BIR.
“That is deciding in favor of
additional revenues and not in favor of revenues foregone,” the
source added.
On July 24, Finance
Undersecretary Gaudencio Mendoza Jr., reversed the ruling of the BIR
and classified Pall Mall as a mid-price brand subject to a lower
excise tax of P6.74 a pack instead of P26.06 under the premium
segment after BAT together with La Suerte asked to review the
classification of the brand.
Cigarette manufacturers have
questioned Mendoza ’s ruling and sought a review of the decision.
These include Fortune Tobacco Corp. of airline and tobacco magnate
Lucio Tan, American-owned Philip Morris Philippines Manufacturing
Inc., Japan Tobacco International (JTI) Philippines and, Associated
Anglo-American Tobacco Corp.
 --Maricel
E. Burgonio
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