British American Tobacco (BAT) on Wednesday said the plan to
investment $200 million in the Philippines over the next five years is
on track, especially now with the approval of a sin tax reform measure
in Congress and its subsequent passing into a law starting next year.
“In light of these latest developments, and in anticipation of
President Aquino signing the bill soon, we confirm that we are investing
at minimum $200 million over the next five years,” the maker of Lucky
Strike cigarettes noted in a statement.
“We are looking forward to competing in the market and contributing to the growth of the Philippine economy,” it added.
Last July, the company said it would scrap its investment plan if the
Aquino administration fails to reform the excise tax on tobacco and
alcohol products.
“We will not pour the money in
until excise reform is done,” BAT Philippines general manager James
Michael Lafferty said in July.
On Tuesday,
Congress ratified a new sin tax measure that would raise prices of
cigarettes and alcoholic beverages. The new legislation, which would
raise P33.96 billion in additional revenues in the first year of
implementation, is now awaiting President Benigno Aquino III’s
signature.
British American said it is grateful
to the Executive Department and Congress for reforming the 16-year-old
sin tax regime. “BAT salutes the wisdom and courage of the Executive
Department and Congress in taking the bold step of reforming the Sin Tax
Law after 16 years,” the company said.
Its
investment would be used to expand its presence in the Philippines,
possibly through the construction of a manufacturing plant, Lafferty
noted earlier.
“We believe that contrary to the
predictions of doomsayers, this new law will be beneficial to the
country for the additional revenues it will generate for funding its
social programs and to the tobacco industry where players can now
compete on a level playing field,” the company said.
British American left the Philippines in 2009, saying the cigarette industry was not a level playing field.
Under the current system, 1996 brands which cover the brands of Fortune
Tobacco Corp. – now merged as Philip Morris-Fortune Tobacco Corp. – are
permanently classified regardless of an increase in net retail prices
while post-1996 brands are classified based on current retail prices.
With the passage of a new sin tax law, BAT said it is looking forward to a level playing field.
“It can – and we are confident it will – open up expanded opportunities
for the industry stakeholders, not only the manufacturers but also
distributors, retailers, employees and the tobacco farmers,” the company
added. — VS, GMA News
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