The Bureau of Internal Revenue (BIR) has issued a friendly reminder to critics of Might Corporation, the only wholly-Filipino tobacco company in the country.
BIR Commissioner Kim Henares, a CPA-lawyer declared during a recent interview over ABS-CBN Philip Morris-Fortune Tobacco Corp. (PMFTC) maybe held liable for libel or slander for the allegations that they are pinpointing at Mighty Corp.
Based on reports, PMFTC has accussed Mighty Corp. of technical smuggling, tax evasion, and related crimes that allows the Bulacan-based cigarette manufacturer to sell their products cheaper in the local market.
Jacinto-Henares said. “If a company is selling at a loss, it is not our problem because there’s no such a law that prohibits selling at a loss. But it’s not sustainable, and we don’t know how long it can be sustained
She also added that some tobacco companies were just being aggressive in seizing market shares from big industry players since the enactment of the new excise tax regime last January.
Mighty Corp. has expressed their willingness to be investigated by the government that may include examining its books along with its competitors to ensure proper compliance of all tobacco industry players especially with the new sin tax law being implemented.
The Wongchuking family-owned company has also denied all the allegations of smuggling or any form of illegal business practices thrown at them by competitors and critics, saying the company managed to lower its operational cost as it does not pay royalty to foreign headquarters and has no foreign consultants.
Based on reports, Mighty was able to gain a remarkable 20 percent of the country’s smoking consumers from 3 percent last year, while industry leader and foreign entity Philip Morris-Fortune Tobacco Corp. (PMFTC) holds 75 percent from a strong 92 percent before January 2013.