Despite the recent filings of cases them by the BIR, renowned local cigarette manufacturer Mighty Corp. shows their full support for the actions the Duterte Administration is taking towards the implementation of a new tax system.
According to Mighty Corp. President, Edilberto P. Adan, Mighty has always been supportive of the government’s efforts to promote public health and raise revenues for their programs.
“Mighty Corp. has always been fully supportive of the government’s efforts to raise revenues from tobacco products, promote health, and support local farmers,” said Adan.
“We only wish to point out that House Bill 4144 is the most advantageous measure for the government because it is expected to optimize revenue generation, address the concerns of health advocates, and provide local tobacco farmers with a steady stream of livelihood opportunities,” Adan said.
HB 4144 promotes a two-tier system in place of a unitary tax rate. This helps local brand spread their reach towards the masses as they will have a significantly lower cost than premium brands.
Moreover, higher tax rates from premium brands will help the government collect more revenues to fund their projects.
“The two-tier tax system will benefit the government in terms of revenues. Not only will it benefit local farmers, it will also continue to help the economy,” Adan said.
The implementation of this new tax system will help decrease the overall use of tobacco, therefore improving the overall health of the country, while also promoting local brands.
Also, it spells great success for the Duterte administration as they will have more funds to fund their projects and programs.
“We believe that HB 4144 will be a boost to the Duterte administation’s tax reform program,” said Adan.