BIR starts tax audit on cigarette manufacturer Mighty

Posted at 06/25/14 4:14 PM

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has started an audit on the tax payments of cigarette manufacturer Mighty Corp.

In an interview with DZMM's Ted Failon, BIR Commissioner Kim Jacinto Henares said BIR personnel have been assigned to Mighty's manufacturing facilities to ensure they are complying with tax payments.

"Yung nirereklamong companya, 24/7 ang tao namin doon. Para kaming security guard, mga tao namin nandiyan, buong linggo," she said.

Henares also said the BIR is auditing Mighty's tax payments. This comes amid allegations the Bulacan-based company, which is known for selling P1 cigarettes, has been underdeclaring its production volume, resulting in billions of pesos in foregone revenues for the government.

Mighty's market share has been rising as it offers cheaper alternatives to Lucio Tan's Philip Morris Fortune Tobacco Corp. (PMFTC) premium brands.

However, PMFTC has accused Mighty of evading taxes, which allows it to sell cigarettes at very low prices.

Meanwhile, Henares said the BIR will start requiring stamps on cigarettes by July, to curb the proliferation of untaxed cigarettes in the market.

"By July, lahat ng sigarilyo sa Pilipinas may stamp. The stamps will be colorful depending on the tax bracket," she said.