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JTI
Philippines, a unit of the JTI Group that manufactures
the Salem and Winston brand of cigarettes worldwide,
registered on Tuesday its protest against the
government’s decision classifying a competitor brand as
mid-priced rather than premium.
JTI
Philippines vice president and general manager, Hamish
A. Moore wrote a letter-protest to both Finance
Secretary Margarito Teves and Bureau of Internal Revenue
chief Lilian Hefti, saying the excise tax classification
of its competitor ought to be reviewed and reconsidered.
“We
would like to express our support to the request of
Philip Morris and Fortune Tobacco for a reconsideration
of the ruling and respectfully ask the Department of
Finance to reverse its decision on the matter,” Moore
said in a letter dated September 14, 2007.
Moore had lamented the DOF’s supposed inability to give him
a copy of the controversial decision allowing
Pall
Mall cigarette maker British American Tobacco to pay
excise of only P6.74 per pack instead of P26.06 per pack
as others have insisted.
Moore
claimed letting that controversial decision to stand
“would have an impact on the effectiveness of Republic
Act 9334” that passed in 2004, implemented the following
year and envisioned to run its course until 20011.
He said
that law provides for same brands to be treated the same
and where there are changes they are to be treated as
variants.
Moore said the competitor, whether its products were locally
manufactured or imported from abroad, are to be treated
“one and the same thing especially for Philippine excise
tax purposes.”
In short
Moore wants Pall Mall manufacturer British American
Tobacco to pay excise of P26.06 as premium cigarettes
should rather than only P6.74 as supported by the DOF.
Fortune
Tobacco, dominant market player and competitor, also
previously protested the DOF ruling appeal for a similar
reversal.
BAT
president and general manager Jeremy Flint said he has
no qualms about paying a higher excise tax for their
products as long as competitors pay the same. |
