Japan Tobacco bucks excise tax reforms
Like Philip Morris Fortune Tobacco Corp., Japan Tobacco International (Philippines) Inc. is against the proposed reforms in the excise tax system in the Philippines.
JTIP said in a statement that House Bill No 5727, which the House committee on ways and means has approved, would result in excessive tax hikes for its products.
JTIP shared the position expressed by PMFTC—a Philip Morris-led combine with Fortune Tobacco—which is opposite that of British American Tobacco (BAT), also a global tobacco giant.
JTIP called on Congress and the Department of Finance— which backs HB 5727—to review the provisions of the bill, “which include among others very steep increases of between 250 percent and 808 percent.”
The company owns cigarette brands Winston, Camel and Mild Seven.
JTIP general manager Manos Koukourakis said in a statement that, for instance, Winston will suffer a tax hike of 274 percent from P7.56 per pack under the current system to P28.30 in the first year of implementation should the bill in its current form become law.
Koukourakis added that in the second year, the tax increase would spike to 297 percent to P30 per pack, which would mean that smokers would likely have to pay double for a pack of Winston.
