Connect with us

Hi, what are you looking for?

Economy

Cigarette makers oppose gov’t printing agency’s plan to raise tax stamp prices

THE PHILIPPINE Tobacco Institute (PTI), an industry lobby group, said it opposed plans by a government printing agency, APO Production Unit, Inc. (APO), to raise the price for tax stamps to 23 centavos from the current 15.

The PTI said in a statement over the weekend that APO will earn excessive profits from the price increase, which the latter blamed on higher ink and paper costs.

The plan to raise prices was disclosed in a series of meetings with the Bureau of Internal Revenue (BIR).

The PTI noted that the actual production cost for a tax stamp is 11.377 centavos, leaving APO a gross profit of 11.623 centavos per stamp.

The planned price hike is “unconscionable and excessive,” since APO is not a revenue-generating agency of the government, PTI President Rodolfo F. Salanga said in a letter to APO Chairman and President Michael J. Dalumpines.

Mr. Salanga said the agency’s monopoly on tax stamps was implemented to ease regulation, and was not intended as a revenue-raising arrangement for the government.

“In view of the foregoing, we believe that the eight centavos printing cost increase from the current 15 centavos per internal revenue stamp to the proposed 23 centavos is unconscionable and excessive. We wish to emphasize that the intent for the internal revenue stamp is to ensure the collection of excise taxes. APO should not opportunistically use such a requirement to collect internal revenue stamp printing cost with a target of more than 102% (profit relative to) actual cost,” PTI said.

The group said a more acceptable price increase would be two centavos per stamp, as happened in 2014 and 2018.

Cigarette tax stamps indicate that taxes have been collected by the government.

PTI includes major producers like Fortune Tobacco Corp., JTI Philippines, Inc., and PMFTC, Inc. 

APO is one of three entities assigned by the government to produce official forms and other sensitive, high-volume printed material.

PTI said it has been raising its concerns with the BIR and APO since December.

BusinessWorld asked APO to comment Sunday but it had not replied at deadline time. — Beatrice M. Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

A cabinet split is hampering the government’s efforts to deal with the nationwide shortage of lorry drivers that threatens fuel supplies at some petrol...

Investing

Pubgoers are flocking back to their locals, according to figures that drew a cautious toast from the industry but also prompted warnings of fresh...

Investing

Ministers are backing a multibillion-pound plan to build another large-scale nuclear power plant in Britain to ease pressure on electricity supplies as the country...

Economy

The Philippines’ balance of payment position (BoP) hit $1.044 billion in August, the highest in four months, due to increased special drawing rights (SDR)...

Economy

Consumers were less pessimistic in the third quarter as more jobs opened up, but business sentiment turned sour amid a fresh surge in coronavirus...

Economy

The Philippine central bank fully awarded the short-term securities it sold at an auction on Friday, even as rates rose on growing inflation fears....

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!