SMB gets P761-M windfall

The Court of Tax Appeals has ordered the Bureau of Internal Revenue (BIR) to refund San Miguel Brewery Inc. (SMB) P761.06 million in wrongfully imposed taxes in 2012.

The tax court’s Second Division reiterated previous rulings that the BIR cannot re-classify the brewery’s San Mig Light brand as a “variant” of the older Pale Pilsen brand.

As a variant of the Pale Pilsen brand, the BIR demanded that SMB pay a tax of P20.57 per liter but SMB argued San Mig Light should be classified a “new brand” at only P15.49 per liter.

“It has been consistently ruled that  ‘San Mig Light’ is a new brand and not a variant,” the court said, referring to at least four en banc decisions in favor of SMB from September 2012.