According to the Bureau of Internal Revenue, the excise tax paid by Mighty Corporation or Mighty Corp made a quantum leap from P300 million in 2012 to at least P8 billion for the whole year of 2013.
Mighty Corporation Spokesperson Oscar Barrientos added that the tax paid for the year 2013 by the Filipino-owned cigarette manufacturing company just past reflects the jump in the market share of the company and their fair share in the increased taxes on “sin” products.
Barrientos, a retired regional trial court judge, said the facts should put to rest false accusations that Mighty Corporation has not been paying its taxes faithfully.
He further pointed out that despite charges in the news media and by some members of Congress against the company, no case has been filed in court.
In fact, Barrientos pointed out, the BIR and the Bureau of Customs have cleared his company of any tax deficiency this year.
The company paid P300 million in 2012, the former judge explained, when its share of the local market of cigarette was a measly 3%. This share shot up since the government put into effect Republic Act 10352, otherwise known as the new sin tax law.
The law has synchronized a five-year adjustment of taxes on cigarettes for it to become a uniform P30 per pack in five years covering all brands.
Records of the Bureau of Internal Revenue (BIR) had shown that excise taxes from both cigarettes and alcohol products increased by 81.5 percent despite a decline in the number of sticks sold. Total tax take from January to November hit an all-time high of P91.6 billion from P60.4 billion in 2012.
Taxes from cigarettes represented 61.6 percent or almost two thirds of sin tax collections for 11 months.
Mighty Corporation which until the year 2012, was a minor player, pitched in more than P8 billion of the excise tax, not to mention the income tax the company will have to pay for the same year come deadline time.
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