Philip Morris Backs Tax Changes

Source from:  Tobacco Reporter 06/14/2011

Philip Morris supports the Thai government's attempts to reform tobacco taxation as it would improve transparency in tax collection, reports The Bangkok Post. The Excise Department is proposing to calculate taxes based on retail prices instead of the ex-factory prices of the Thailand Tobacco Monopoly for local cigarettes and CIF (cost, insurance and freight) prices for imported cigarettes. The Philippines, where Philip Morris produces cigarettes for Thailand and other markets, recently won a long-running dispute with Thailand over cigarette import taxes. Manila filed a complaint with the World Trade Organization (WTO), accusing Thailand of violating the 1994 General Agreement on Tariffs and Trade (GATT) regarding valuation methods for customs and value-added taxes on cigarettes imported from the Philip Morris plant in the Philippines. Thai authorities accused the company of understating the import prices. Under the WTO, a member must abide by the GATT method, in effect the CIF prices, declared by an importer in calculating customs tax. After the WTO ruled last November in favor of the Philippines, Thailand filed for an appeal. Enditem