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PMFTC and Japan Tobacco Inc. sells at P5 per cigarette stick and  Mighty Corp sells at one-peso-per cigarette stick, of course people would definitely go for the cheaper one. But many complained about this.

According to the article of Iris C. Gonzales of The Philippine Star posted in http://www.abs-cbnnews.com/business/, The Bureau of Internal Revenue (BIR) is looking into reports of under-declaration by cigarette maker Mighty Corp., a Filipino-owned company which sells the one-peso-per stick cigarette brand of the same name.

Mighty Corp. Inc. Executive Vice President Oscar P. Barrientos assure to cooperate with the authorities. He said “We have been transparent with the Customs bureau, and we will continue to be transparent.” “We will continue to cooperate with authorities pending the full and final results of the inquiry being undertaken by the authorities. We will address these allegations at the appropriate time as soon as we receive the final report on the findings."

According to Wikipedia, Philippines is the 15th largest consumer of cigarettes in the world in 2002 and currently has one of the highest smoking rates in Asia, as well as some of the lowest cigarette prices.

The only company known for lowest cigarette prices is Mighty Corp, aside from being great role player to farmers they are also active in social responsibility in our country.

An issue aroused after the company’s sales improved after selling cigarettes at cheaper price compared to the products of their competitor.

Mighty sells cigarette P1 per stick, rival Phillip Morris Fortune Tobacco Company (PMFTC) priced theirs at P5 per piece.

Miguelito Ocampo said their company incur relatively lower overhead and production costs because it sources its services, management and materials locally.

“While our company cannot comment on how other cigarette companies price their cigarettes, what we can say is that our company can sell one-peso-per stick cigarettes because Mighty does not pay royalty fees to foreign companies for the use of our brands of cigarettes,” Ocampo explained.

But the question is: did the other companies comply with the law?

With the widespread rumors over the alleged illegal activities and tax evasion of Mighty Corp, they stood by their principles to provide employment to the needy.

Over the past few months, news over Mighty Corp’s alleged suspicious operation in the country circulated in media.

With the efforts done by Filipino-owned company, they recently paid P8 billion excise tax, in connection with new sin tax law. But BIR commissioner Kim Henares called an investigation on suspected anomaly on payment of tax.

How they can prove that MC didn’t followed the law? They didn’t investigate other companies in the cigarette industry.

The issue over low priced product by Mighty Corp is legitimate because of the implemented new sin tax law last year.

Though Mighty Corp products known in the urban area because of low price cigarette that is available in sari-sari stores, wherein products of two major manufacturers of t*bacco sold each pack of cigarettes.
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