BAT doubles tobacco sourcing from Phils

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The Philippines’ new sin tax law noticeably exempts “tobacco products currently in the market.”

British American Tobacco (BAT) has announced that it will step up its sourcing of tobacco leaves from the Philippines by doubling purchases to 3.6 million kilos in the 2012-2013 planting season.

The bulk buy is estimated to carry a price tag of between $12 million to $14 million, a purchase that makes BAT the largest buyer of Philippine tobacco, in relation to market size.

Adding to this, BAT is planning to invest more than $50 million in the Philippines in 2013 to hire new staff and to step up production and marketing. Earlier, the company said it will invest at least $200 million in the country over the next 5 years.

BAT had encouraging support to base their larger position in the Philippines on.

The Philippines has the strongest tobacco lobby in Asia, a research paper by K. Alechnowicz and S.Chapman of the University of Sydney in Australia revealed in late 2012.

“The Philippines as among the world’s slowest to take tobacco control seriously. The industry’s ability to exploit their commercial and political freedom remains today,” the study stated.

On January 1, 2013, the country’s new sin tax law, which applies progressive increases to the taxation of alcohol and tobacco, noticeably exempted “tobacco products currently in the market.”

Under the new law, products that fall under this bracket “will be initially classified according to a 2010 price survey conducted by the Bureau of Internal Revenue, with items introduced since then classified using the suggested retail price as given in a sworn statement by the manufacturer or importer,” the sin lax law states.

Philippine Finance Secretary Cesar Purisima openly accused the tobacco lobby for employing a “news blackout” in local media during the sin tax debate in late 2012.

“There was zero cover of yesterday’s dramatic testimonies… Lobby vs sin tax very obvious,” Purisima said on his twitter account.

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Reading Time: 2 minutes

The Philippines’ new sin tax law noticeably exempts “tobacco products currently in the market.”

British American Tobacco (BAT) has announced that it will step up its sourcing of tobacco leaves from the Philippines by doubling purchases to 3.6 million kilos in the 2012-2013 planting season.

Reading Time: 2 minutes

Aquino smoking
The Philippines’ new sin tax law noticeably exempts “tobacco products currently in the market.”

British American Tobacco (BAT) has announced that it will step up its sourcing of tobacco leaves from the Philippines by doubling purchases to 3.6 million kilos in the 2012-2013 planting season.

The bulk buy is estimated to carry a price tag of between $12 million to $14 million, a purchase that makes BAT the largest buyer of Philippine tobacco, in relation to market size.

Adding to this, BAT is planning to invest more than $50 million in the Philippines in 2013 to hire new staff and to step up production and marketing. Earlier, the company said it will invest at least $200 million in the country over the next 5 years.

BAT had encouraging support to base their larger position in the Philippines on.

The Philippines has the strongest tobacco lobby in Asia, a research paper by K. Alechnowicz and S.Chapman of the University of Sydney in Australia revealed in late 2012.

“The Philippines as among the world’s slowest to take tobacco control seriously. The industry’s ability to exploit their commercial and political freedom remains today,” the study stated.

On January 1, 2013, the country’s new sin tax law, which applies progressive increases to the taxation of alcohol and tobacco, noticeably exempted “tobacco products currently in the market.”

Under the new law, products that fall under this bracket “will be initially classified according to a 2010 price survey conducted by the Bureau of Internal Revenue, with items introduced since then classified using the suggested retail price as given in a sworn statement by the manufacturer or importer,” the sin lax law states.

Philippine Finance Secretary Cesar Purisima openly accused the tobacco lobby for employing a “news blackout” in local media during the sin tax debate in late 2012.

“There was zero cover of yesterday’s dramatic testimonies… Lobby vs sin tax very obvious,” Purisima said on his twitter account.

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