Philippines: Tobacco Giant Wants ''Refinements'' to Sin Tax Bill

Source from:  ABS-CBN Broadcasting Corporation  11/29/2012

MANILA, Philippines - Philip Morris Fortune Tobacco wants further amendments to the sin tax bill that was passed by the House committee on ways and means last Wednesday. Philip Morris Fortune Tobacco president Chris Nelson told ANC the company supports an increase in the tax rate of cigarettes, but not as much as what it says is a 700% tax hike that will be slapped against its products. "What we need to look at here is what is the right tax structure... What we want to hear is to have a tobacco industry that will sustain and grow forward. Refinements to the bill and consultations will be a key aspect as we move forward," he said. Nelson rebutted claims that the approved version is fair to tobacco farmers. He said the higher tax will turn off smokers so that there will be less need for tobacco. "The market is over 60% low-priced and will obviously have a severe impact on tobacco growing," he said. Philip Morris Fortune Tobacco controls over 90% of the local tobacco market. US-based tobacco giant Philip Morris and Lucio Tan-owned Fortune Tobacco Corp. merged in 2010. Enditem