The fully integrated Filipino-owned Mighty Corporation has paid P8 billion in excise tax for the calendar year 2013, from its previous P300 million payment for the year before. Mighty Corp. Executive Vice President Oscar Barrientos said that his company’s compliance with tax payment regulations should be enough to put to rest the accusations that they have not been paying its dues to the government.
Retired Regional Trial Court Judge Barrientos explained that the 2013 taxes that the company paid is a reflection of the increase in their market share as well as their fair share on taxes for the sin products during the previous year. He said that despite all the allegations that the company has been bombarded with by members of the social media and even by some members of Congress no cases has actually been formally filed in court—in fact, the Bureau of Customs itself has had the company cleared of any deficiencies in tax payments up until February 2014.
With the implementation of the new sin tax law or technically referred to as the Republic Act 10352, Mighty’s market share skyrocketed, which explains the equally high increase in the taxes that they also had to pay for the current year as opposed to the P300 million they had to pay out in 2012. The same law has effected a synchronization of adjustment on cigarette taxes to make it P30 for every pack for all brands within a five-year period.
Reports from the Bureau of Internal Revenue illustrated that excise taxes both from alcohol and cigarette products reached 81 percent even with the decline in the number of cigarettes marketed. Cigarette taxes comprise 61 percent of sin tax collections for the last 11 months.
While being a minor industry player in the tobacco industry until 2012, Mighty Corporation paid in over P8 billion of taxes, excluding the same tax fees it would have to settle for the same year before the deadline stipulated.