Mighty tobacco probed for selling cheap cigarettes

Filipino owned Mighty Tobacco sells its cigarettes for P1 per stick.

MANILA, Philippines Cigarette manufacturers in the Philippines have urged the Bureau of Internal Revenue (BIR) to probe into local player Mighty Tobacco Corporation’s alleged under declaration of products meant to reduce sin tax payments.

Mighty manufactures and sells cigarettes retailed at P1 per stick, which categorized the products under the low end tier subject to the cheapest sin tax rate.

The government’s ongoing investigation of the allegations of under declaration by Mighty was based on complaints from «industry sources.»

Capturing about 90% industry share is Phillip Morris Fortune Tobacco Company (PMFTC), which is jointly controlled by one of the world’s biggest cigarette firms and the group of local tycoon Lucio Tan.

PMFTC sells its products at about P5 apiece, way more than Mighty’s.

No foreign owner

The Filipino cigarette firm denied the allegations and alluded to the industry leader, in which multinational firm Philip Morris has a stake.

Mighty’s legal counsel Miguelito Ocampo said While our company cannot comment on how other cigarette companies price their cigarettes, what we can say is that our company can sell one peso per stick cigarettes because… Mighty does not pay royalty fees to foreign companies for the use of our brands of cigarettes.

Ocampo also stressed that Mighty incur relatively lower overhead and production costs because it sources its services, management and materials locally.

Mighty, he added, is not the only brand that sells cigarettes for P1 each.

Reformed sin tax law

Under declaration of every 1 billion cigarette sticks can cost the government P600 million in excise taxes.

Republic Act No. 10351 or the restructured sin tax law, which caused price inflation in cigarettes and booze, was put in effect to generate additional revenues of roughly P34 billion in 2013, the first year of the reform law’s implementation. The excise taxes will be spent for the universal healthcare program and tobacco farmers’ livelihood.

Some smokers, however, resorted to cheaper, one peso per stick brands after the reform law was implemented in January 2013. (READ Higher booze, cigarette prices as sin tax law takes effect)

About 25% of sub and premium smokers switched to lower end brands, industry estimates showed.

The reform law seems to have failed to curb local consumption. Instead, sticks sold per smoker increased to 14.13 in the second quarter from 13.53 in the first. (READ PH lags behind in health promotion)

The law’s enactment has also given rise to the possibility of smuggling tobacco products, which has already been spelling loss for the major players, especially those that sell higher than P1 per stick.

Where can i buy cheap cigarettes online in the u.k? in the answerbank: shopping

friedgreentomato Try 15 54 Sun 26th Aug 2012
Simple advice

From HMRC’s website

«Is it legal to buy tobacco over the internet from another European Community country?

Yes, but ONLY if the UK VAT and excise duty is paid on the goods. The person who sells the goods must make arrangements for these taxes to be paid before they are sent to you. If you are a customer, it is in your interests to ensure this has been done, otherwise the goods are liable to forfeiture by Customs at the postal depot».

So then they don’t come cheap. 15 55 Sun 26th Aug 2012
Mosaic East lancashire, most corner shops, but do not be at all surprised if what is described as Benson and hedges is actually woodchip, burnt sofas and mud, prepared lovingly by a workforce with very interesting communicable diseases. 15 58 Sun 26th Aug 2012
EDDIE51 You can’t buy cheap fags online or anywhere else. Cheapest way is to buy 20,000 at a time from a cash and carry . You will save around 25p a pack of 20 over the shop price. 16 05 Sun 26th Aug 2012
sandyRoe Wouldn’t they cost thousands of pounds? 16 08 Sun 26th Aug 2012
bednobs lol are you trying to buy friends with fags? Are you still at school? 16 09 Sun 26th Aug 2012
sandyRoe f8 for 20, f40 for a hundred, f400 for a thousand, f8000 for 20,000. You’d be richer giving up smoking altogether. 16 12 Sun 26th Aug 2012
Prudie You could make friends with people in the South who work the ferries or maybe an airline worker. Even then 800 is the guideline to bring in from the EU. 16 19 Sun 26th Aug 2012
EDDIE51 I’ve had a look and the big ‘cash & Carrys’ are all more per pack of 20 than buying from Tesco , remember the price you see in the cash and carry is without VAT so add on 20%. 16 20 Sun 26th Aug 2012
JonnyBoy12 Question Author No, I am not still at school and I am over the age of 18. Remember I had a birthday recently. Can anyone remember that? I will not tell you what it is.

I have just found the following site in the Internet. See the link below

16 23 Sun 26th Aug 2012
Mamyalynne Jonny if you are intent on this, after all the advice given then just do it and don’t complain when it backfires. 16 27 Sun 26th Aug 2012
Graham W If you live near any of the ferry ports you can save f150 on 800 cigarettes by having a day trip to Belgium. Save f80 f100 in France, depending on what you smoke.
You’ll save more than the ferry cost as a foot passenger. 16 28 Sun 26th Aug 2012
pink kittens LOL, address is
Amarico SA
50th Street, Global Plaza Tower
19th Floor, Suite H
Panama City

«Since we cannot guarantee that duty tax will not be charged world wide, in case of request for duty tax, you can
pay duty tax and collect the parcel.
reject the parcel which will be returned to us and ask for your money back» for sure

And they do not sell cigarettes only ship them. They drop ship in other words
buy at your peril, repenting isn’t usually pleasurable 16 29 Sun 26th Aug 2012
JonnyBoy did you see this at the end of the link you provided?

Very important The cigarettes on sale at are for personal use only. Reselling the products may be a criminal offense. 16 32 Sun 26th Aug 2012
Do we really need this rubbish on AnswerBank? 16 33 Sun 26th Aug 2012
craft1948 lol you’ve answered the rubbish 3 times……………. 16 35 Sun 26th Aug 2012
PurplePotRay ( Even then 800 is the guideline to bring in from the EU. )

What happened to you must think European be European and free trade in Europe ? 16 38 Sun 26th Aug 2012
B00 Why is it rubbish?

The OP has asked a legitimate question hasn’t he? The fact that it can’t be done, well, not with any significant savings isn’t his fault, nor does it make his question invalid. 16 38 Sun 26th Aug 2012
JonnyBoy12 Question Author Thank you BOO. I did ask ask a valid question and have got some sensible answers. I am sorry to see that I can not really do that except if I go abroad and buy duty free there and bring it back. Can any of you tell me the legal limit for one person bringing back fags from the Continent? 16 42 Sun 26th Aug 2012
Brimoan I was offered some cheap cigarettes on the street about a year ago but I do not smoke and would not buy any for another person.
I do not know the full story but I saw the person being arrested a few hours later. 16 45 Sun 26th Aug 2012

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