Philippines: Mighty''s Market Share Raches 22.5%, Pays P8.2 billion in Taxes

Source from:  Manila Bulletin 01/22/2014

Bulacan-based cigarette maker Mighty Corporation said on January 21 that its market share expanded to 22.5 percent and paid P8.2 billion in excise taxes last year.

In a statement, Oscar P. Barrientos, Mighty executive vice-president, said their market share grew from a merely 3 percent in the previous year, while their paid excise taxes increased from only P500 million in 2012.

"Allegations that Mighty did not pay the correct taxes for 2013 are grossly inaccurate and downright ridiculous. Our critics had most likely misunderstood the data from the Bureau of Internal Revenue (BIR)," Barrientos said.

"The taxes we paid for the year 2013 reflects the jump in our market share and our fair share in the increased taxes on 'sin' products last year," he added.

The official also explained that the P8.2-billion tax payment was based on an average market share of 13 percent for the 12 months of last year.

"We slowly but surely grew our market share over the past 12 months on the strength of our production efficiencies and a sound national sales distribution strategy," Barrientos said.

"We did not have a 20 percent year-round market share average, as what are our critics have erroneously and maliciously implied, when they accused us of tax evasion," he added.

Mighty is currently being accused of evading payment of P4 billion in excise taxes. Critics said Mighty should have paid P12 billion instead of P8 billion since its 20 percent market share was supposedly equivalent to 20 billion sticks sold.

BIR data showed that total cigarette withdrawals in 2013 were about 100 billion sticks.

"The first time we hit 20 percent market share was in December, 2013. Our critics computed excise tax dues on 20 percent market share year-round. Of course there will be a discrepancy. They give new meaning to the term 'creative accounting.' The truth is, we paid the right taxes," Barrientos said.

"Any attempt to mislead the public, either wittingly or unwittingly, borders on malice or worse," he added. Enditem