Cigarette firm backs 2 House bills adjusting excise tax rates

Manila, Philippines - The Cigarette Manufacturer Associated Anglo-American Tobacco Corp. (AAATC) has expressed support for two House bills seeking to adjust excise tax rates on tobacco products.

AAATC vice president Blake Clinton Dy said in a position paper submitted to the House ways and means committee that his company sees House Bill 3332 of Ilocos Sur Rep. Eric Singson Jr. and House Bill 3666 of Antique Rep. Paolo Javier “to be the most equitable and, more importantly, sustainable in terms of cost for our company’s continued operation.”

 “Coming from provinces that have been traditionally engaged in tobacco growing these two legislators have demonstrated a healthy understanding of the tobacco industry and its impact on the Philippine economy,” Dy explained.

“In particular we appreciate the two authors’ measured and level approach to the issue of the tobacco industry in treating it as a business to be managed sensibly in light of its contributions to government’s coffers and to the Filipino people at large rather than an adversary to be taxed irrationally and mercilessly into non-existence based on the spurious claims and the fear mongering of foreign funded anti-tobacco groups,” he added.

Dy said his company rejects other bills that excessively increase the excise tax rates as well as re-classify the categories of taxation for tobacco products.

“In the case of the former we would like to point out that we are a smallest player in the industry. Thus, the company is more vulnerable to economic shocks such as the recent wage increase, the skyrocketing price of electricity and the fluctuating price of bunker oil,” he said.

“At present we are still trying to cope with these factors and the massive proposed excise tax hikes on tobacco products would be crippling to say the least as it would compel us to raise prices which would effectively eliminate our ability to compete ably in an environment where government strictly regulates our avenues for the advertisement and promotion of our products,” Dy added.

He also criticized proponents of bills who seek to reduce tobacco consumption while at the same time demanding higher revenue collections.