True to its word that they welcome the government’s plan to examine its books along with its competitors to ensure proper compliance of all tobacco industry players with the new Sin Tax Law, Mighty Corporation said that they will continue to work hand-in-hand with the authorities even after a special Department of Finance Task Force ordered the shutdown of the importation warehouse of Mighty Corp. for an alleged “serious violations of the Tariff and Customs Code.”
Mighty Corp, a Bulacan-based cigarette manufacturer and the only wholly-owned player in the Philippine tobacco industry, assures their customers that it’s business as usual for the company and that it has long been focused on the domestic market even if their services of re-channeling duty-free cigarettes-for-export for domestic distribution and consumption is labelled as pending full audit investigations.
Despite the shutdown of Customs bonded warehouse (CBW) operated by Mighty Corp, the company will resume production and marketing of low-priced but quality cigarettes that includes popular brands Mighty Filter Kings and Mighty Menthol that both sells in the market P183 per ream.
In an initial review of the import entries covering 2011 and 2012, the Bureau of Customs have said to have discovered that Mighty imported toba*co regardless of type and country of origin at $0.68 per kilo where other high-volume tobacco importers paid a range of $3 to $8, based on data supplied by the National Toba*co Administration (NTA).
But Mighty Corp has found an ally in the Bureau of Internal Revenue (BIR) that has earlier denied any form of smuggling happening in the cigarettes industry today. BIR Commissioner Kim S. Jacinto-Henares said 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.
“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,” Jacinto-Henares said in response to accusations that Mighty Corp was able to sell their products cheaper compared to other companies because of the alleged cigarette smuggling