Philip Morris: No price hike yet

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A vendor sells cigarettes at a supermarket in Quezon City. AFP FILE PHOTO

MANILA, Philippines—Cigarette maker Philip Morris Fortune Tobacco Corp. (PMFTC) on Friday appealed to its distributors and retailers to sell its products at pre-sin tax recommended retail prices, saying it has not yet raised the prices of its cigarette products.

PMFTC’s cigarette brands are among the most popular among smokers, including Marlboro and Philip Morris.

Cigarette vendors told the Inquirer that many retailers raised the prices of cigarettes even before Christmas, although the higher sin taxes took effect only starting Jan. 1

“We wish to clarify that PMFTC has, to date, not raised the prices of its cigarette products,” the company said in a statement.

“It has come to our attention, however, that some wholesalers and retailers have started selling our cigarette products at higher prices even during the holidays,” it added.

Hoarding

Some vendors also said that some suppliers had been hoarding last year’s stocks in order to make a windfall profit now that taxes have been raised.

“We have raised prices by P1 per stick,” said Aling Edita, who sells cigarettes along Shaw Boulevard in Mandaluyong. “I hear that in Pasay (City), they raised prices by P2 per stick.”

Edita said a pack of Marlboro and Philip used to sell at P33. But now they go for P44 and P44.50, respectively. She added that a stick of Marlboro or Philip now fetches P4, but said they were selling at P5 in Pasay City.

On the other hand, the Rustans Supermarket branch at the Shangri-La Plaza Mall is having a promotional sale with one pack of Marlboro for only P24. However, the Inquirer found the shelf almost empty.

 

No delivery

A store clerk said that while the supermarket extended the promo until Jan. 15, there was “no delivery” of the popular brands.

“We can assume that this was in reaction to the (Bureau of Internal Revenue’s) publication of the revised tax rates and the subsequent media coverage and pronouncements of various government authorities on this issue,” PMFTC said.

PMFTC is a merger between Philip Morris Philippines Manufacturing Inc. and Fortune Tobacco Corp. Together, they control at least 90 percent of the domestic cigarette market.

“For now, we would like to encourage all our customers to sell our cigarette products at our current recommended retail prices,” the company added.

The BIR has issued Revenue Regulation No. 17-2012 dated Dec. 21, which says that machine-packed cigarettes are now classified into two—those whose net retail price (NRP) is P11.50 or less per pack and those with NRPs above that point.

Starting Jan. 1, excise tax on the lower tier cigarettes was raised to P12 per pack while that on the higher tier was set at P25.

This means that excise tax on the cheapest brands increased by as much as 340 percent (more than four times) or by P9.28.

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • http://www.facebook.com/profile.php?id=1405060221 Fearless Gara

    sana gawing P5.para konti nlng ang manigarilyo at kawawa naman kaming mga nakakalanghap.

  • http://pulse.yahoo.com/_YZJZ357IPZ65N4HGFINXUNDPVQ JP

    Para talagang maka save ang gobyerno lalo na sa limited health care funds, tanggalan na lang ng Philhealth coverage yun mga smoking related diseases. Tutal self inflicted naman yun eh.

  • piskay

    puro pabigat ang dulot ng admih na to,kunting aliwan ng mga tao pinagdidiskitahan.hinde marunong humanap ng ibang paraan.

    • http://pulse.yahoo.com/_YZJZ357IPZ65N4HGFINXUNDPVQ JP

      Magandang paraan kaya yan para mabawasan ang nagkakasakit sa baga. Aliwan ba yun eh kanser ang dala nun. Hindi lang sa naninigarilyo ha pati sa mga nakakalanghap na di naman smoker.

  • http://twitter.com/levadd ad lev

    naku dina iboboto si mar ng mga naninigarilyo….itinaas ba naman ng boss nia ng todo todo ang sigarilyo at alak…hehehe….todas ka sa 2016…walang kapag a pag asa manalo.

  • disqusted0fu

    People are already trying to find ways of taking advantage of this new law approved by the administration! Creating a new law is one thing, enforcing and implementing it is another. That is whats severely lacking in this administration because they do not walk the walk but just keep on talking the talk.

  • rayingga

    Kung hindi lang sana kontra bida ang ilang mga senador at maraming congressman dapat ay 100 pesos ang presyo ng branded cigarettes para maiwasan ng mga kabataan. Nevermind the old ones dahil mga addict na ang mga iyan.

  • bobong_urHonor_at_DonDee

    Smoke yourselves to death already, so we can pass a new bill – taxing the dead who died from tobacco products

    • http://pulse.yahoo.com/_YZJZ357IPZ65N4HGFINXUNDPVQ JP

      Mas maganda eh tanggalan ng Philhealth coverage yun mga smoking related illness.

  • Rovingmoron

    No matter how much each cigarette stick is, addicts will still buy it just to inhale nicotine into their lungs. Nice New Year resolution.

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