MANILA, Philippines - Tobacco giant Philip Morris Fortune Tobacco Corp. (PMFTC) Inc. said the government's P72 billion excise tax collection target for 2014 may be too conservative.
In a statement, PMFTC president Paul Riley said the company alone is likely to pay around P70 billion in excise tax payments this year.
"Based on the yearly increase in tax rates and current trends, PMFTC will itself likely contribute around P70 billion in excise tax payments for 2014," he said.
The Department of Finance earlier raised its revenue collection target for tobacco products to P72.11 billion, 10 percent higher than the P65.15 billion initial target for this year.
"Given our current market share of 71%, if all manufacturers were to pay excise tax on all the cigarette packs they produce, then the DoF should expect to receive excise tax payments well over P90 billion, which is considerably more than their original target," Riley said.
Earlier, Riley said about P23.6 billion of the P28.18 billion collected in tobacco excise taxes by the Bureau of Internal Revenue (BIR) were from PMFTC.
PMFTC has been raising questions on the tax declarations of rival Mighthy Corp.
"The apparent gap between the market share of Mighty and their likely percentage of total tax paid withdrawals in January-June 2014 is very large and raises a lot of questions," the company said.