MANILA - Cigarette manufacturer Mighty Corp's P40-billion tax settlement will be used to fund government's infrastructure program, Malacañang said Saturday.
"This landmark tax settlement is the largest in Philippine history and will go a long way in funding the Duterte administration's infrastructure program," Presidential Spokesperson Ernesto Abella said in a statement.
The Department of Justice had dismissed a P37.9-billion tax evasion complaint against the company after it paid in full its tax liabilities of around P40 billion.
"Under our tax laws, compromising or settling is allowed. It is now considered case closed," Justice Secretary Vitaliano Aguirre II had said Friday.
Mighty Corp, accused of faking tax stamps, had previously offered government a P25-billion settlement and said it would no longer engage in the tobacco business.
The complaint stemmed from 3 raids on Mighty's warehouses in the provinces of Pampanga and Bulacan, and in General Santos City earlier this year.
President Rodrigo Duterte in July said that he had accepted the firm's settlement offer.