Tobacco Firm Pulls Out Brand

Source from:  tobaccojournal.com 10 Aug 2008 08/12/2008

British American Tobacco (BAT) has pulled out its cigarette product Pall Mall from the Philippine market due to a high excise tax rate imposed on imported cigarette products. "There is no sense in continuing to sell the brand if there is no level playing field in the market," Jeremy Flint, BAT general manager, told reporters. The company could not compete under the current excise tax system, where brands introduced after 1997 are imposed higher excise tax rates. In February, the Department of Finance sided with the Bureau of Internal Revenue (BIR) and competitors of BAT when it announced that Pall Mall should be imposed with the highest excise tax rate of PHP 26 (EUR 0.4) a pack. Pall Mall is locally manufactured by La Suerte Cigar and Cigarette Factory through a licensing agreement with BAT Philippines. The British-owned company would continue to maintain its presence in the Philippines through Lucky Strike, Dunhill and Vogue, Flint said. Enditem