Mighty Corporation or Mighty Corp is known to be as the Philippines number one producer of low-priced brands of cigarettes.
The first and only filipino-owned cigarette manufacturer in the country recently announced that it will double its purchase of raw tobacco products from local farmers in Northern Luzon this year amounting to millions of pesos of additional income for the local tobacco industry.
“This is to assure our tobacco farmers of our willingness to help in response to the published report of the market leader in the tobacco industry to lessen production this year,” Barrientos said.
In effect, the announcement debunked critics’ allegations that Mighty Corp has been importing raw materials from foreign countries at low prices and is no longer buying tobacco from local farmers.
Barrientos also revealed that critics had been resorting to a disinformation campaign using convoluted data in an effort to undermine Mighty Corp's tremendous increase in the tobacco industry's market shares which soared to almost 20% on its low-priced cigarette brands last year, resulting in the payment P8.2 billion in excise taxes to the government.
Barrientos said that the increase is expected since the government already effectively implemented Republic Act 10352, or the Sin Tax Law, that leveled the playing field in the multi-billion peso industry controlled by Philip Morris and Fortune Tobacco.
The new Sin Tax Law that took 14 years to pass caused a tremendous migration of smokers from the expensive premium and sub-premium brands to low-priced cigarettes.
It also resulted in some smokers to simply quit the smoking and validated health authorities’ estimate that the new law would result in the decrease of the number of smokers in the country.
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