With cigarette minimum price
Philip Morris Fortune Tobacco Corp. (PMFTC) has expressed doubts about the ability of its rival Mighty Corp. to comply with the provisions of a bill seeking to impose a minimum price for cigarettes once the measure is signed into law.
In a statement, PMFTC reacted to a pronouncement made by Mighty expressing its support for House Bill 5013 that seeks a minimum cigarette price of P38 per pack starting January 2015, P44 by 2016, and P51 by 2017.
Mighty said this will help rationalize the Philippine tobacco industry and prevent price undercutting by bigger industry players.
“Mighty could not possibly comply with a minimum price as they sell more than 95 percent of their products below tax and cost,” said Paul Riley, PMFTC president.
PMFTC said that Mighty should first comply with the stamp tax regulation of the Bureau of Internal Revenue (BIR) which will be implemented on December 1.
PMFTC is referring to BIR Revenue Regulation No. 9-2014, which provides that all locally manufactured packs of cigarettes shall be affixed with the internal revenue stamps not later than December 1, 2014.
This way, all manufactured cigarettes shall be affixed with the internal revenue stamps by March 1, 2015, PMFTC said.
No imported cigarettes shall be found in the market without the new stamps effective April 1, 2015.