GMA asked to stop BIR from raising excise tax on new cigarette brands

Employees of La Suerte Cigar and Cigarette Factory are appealing to President Arroyo to stop the Bureau of Internal Revenue (BIR) from implementing Revenue Regulation 22-2003 which raises the excise tax on new brands of cigarettes.

In a letter to President Arroyo, the three labor unions of La Suerte said BIR-RR 22-2003 would raise the price of La Suerte’s Astro and Memphis brands from P8 per pack to P12.50 per pack or by 57 percent.

BIR-RR 22-2003 imposes a higher excise tax on new tobacco products introduced after Jan. 1, 1997. Tobacco brands before this date are not affected by the higher excise tax.

The increase in the price of La Suerte’s two new cigarette brands, the tobacco workers fear, would mean a production cutback resulting in the lay-off of workers.

The three labor unions – Nagkakaisang Manggagawa sa La Suerte-Independent, the Monthly Rated Rank & File Independent Union, and the Supervisors’ Union – fear that if there is a lay-off, the more senior workers would no longer be able to find another job because of their advanced age.

They cited a previous action by government which resulted in the pullout of another cigarette brand, Forbes.

La Suerte employees fear that smokers are likely to shift to the old brands because of their lower prices. – Marianne Go