Philippines: Finance Department Tags Undervalued Tobacco Imports

Source from:  Business World Online  08/21/2014

The Finance Department yesterday put tobacco importers in the spotlight in its latest Tax Watch advertisement, claiming that 12 out of 27 firms declared import values below the industry average.

In its latest advertisement, the Finance department, using Customs data, featured five types of tobacco imports which make up 76% of the P6.6 billion total value of unmanufactured tobacco for the first half of 2014.

Out of the 27 importers of tobacco, the Finance department said six firms imported 30% below average, three imported 20% below the industry average and another three imported 10% below.

"Declare the proper values and take part in building the nation," the advertisement read.

Tobacco imports include those that are not flue-cured, Virginia type, burley type, tobacco stems and tobacco substitutes.

Philip Morris Philippines. Manufacturing recorded the highest weighted average price per kilogram (kg) in all five types of imports, the advertisement noted.

For tobaccos that are not flue-cured, Philip Morris reported an average price of P288.77/kg, above the industry average of P175.31/kg. Associated Anglo-American Tobacco declared a P149.22/kg average price.

Philip Morris likewise posted the highest weighted average for Virginia type, flue-cured at P324.07/kg, while Universal Leaf Philippines, Inc. only reported a P48.99/kg price. The industry average was at P180.00/kg.

For burley type with an average industry price of P190.15/kg, Philip Morris declared a P325.50/kg value while Associated Anglo-American Tobacco only reported P162.89/kg in weighted price.

For tobacco stems, Philip Morris declared a P288.77/kg price while PMFTC Inc. reported P42.55/kg.

The industry average is P42.97/kg.

For tobacco substitutes, Philip Morris declared P6,502.95/kg compared to Bulgartabac Philippines, Inc. which reported P235.25/kg in average price. The industry average is P190.15/kg. Enditem