La Suerte told to pay higher tax for Pall Mall
La Suerte Cigar & Cigarette Co. can only withdraw its cigarettes from their factory if it pays an excise tax rate of P26.06 per pack, the Bureau of Internal Revenue (BIR) said yesterday.
La Suerte earlier asked the BIR to allow the company to withdraw
La Suerte, the local partner of United Kingdom-based British American Tobacco, wants the BIR to allow the withdrawal of
However, BIR Commissioner Lilian Hefti said La Suerte can only withdraw the cigarettes from the factory provided it pays the P26.06 per pack excise tax slapped by the bureau. The BIR had slapped the higher tax rate on
“La Suerte may freely effect removal of
The Department of Finance (DOF), last July 24, reversed the BIR’s February 22 ruling and instead slapped an excise tax rate of P6.74 per pack on Pall Mall cigarettes.
The DOF is now reviewing its July 24 ruling after four cigarette companies appealed to the department.
Fortune Tobacco, American-owned Philip Morris, Associated Anglo-American Tobacco Corp. (Anglo-American) and Japan Tobacco International (JTI) Philippines argued that Pall Mall should be paying higher taxes as this was previously sold in duty-free shops.
La Suerte, for its part is not willing to pay a higher excise tax just to be able to replenish the supply of
A company source earlier said it would be difficult to file a refund before the BIR.
Finance Secretary Margarito Teves has said that the department may be able to decide on the
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