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Wednesday, June 27, 2007
Major cigarette maker wants SC to void RP's tax measure (9:50 a.m.)
MANILA -- The British American Tobacco (BAT), the world's second largest
international tobacco firm, has asked the Supreme Court (SC) to declare unconstitutional the Philippine tobacco excise law saying it is unfair and discriminatory.
The position of BAT is being contested by Fortune Tobacco Corporation, the country's largest cigarette producer.
During yesterday's oral arguments, BAT counsel Carlos Banigued said Section 145 of the National Internal Revenue Code (NIRC) violates the equal protection clause of the 1987 Constitution, based on its distinction between old brands and new brands of cigarettes.
Old brands pay excise based on their retail price in 1996 or prior to the implementation of the tobacco excise law on Jan. 1, 1997, while new brands pay excise based on their current retain price.
BAT sought to nullify the Bureau of Internal Revenue's 2001 decision reclassifying BAT's Lucky Strike brand to a significantly higher rate while its competitor brands remained unaffected.
BAT sought to enjoin the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) from enforcing Revenue Regulations 22-2003 which increased the excise tax on its Lucky Strike cigarettes from P8.96 to P13.44 in line with Section 145 of the NIRC.
Currently, Lucky Strike pays excise at P26.06 per pack while competitor brands pay at a rate of P10.35 per pack. (ECV)
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