BIR speaks up on Mighty Corp's controversies

Mighty Corp, a Bulacan-based tobacco manufacturers which was accused of alleged tax evasion, illegal smuggling and trade misconduct. For the past few months, there's a survey conducted by foreign research firm, AC Nielsen. They described the company as killing the local brands in the market. 

Kudos to BIR, they are neutral over Mighty’s controversies, they are not taking side over the competition to its rival. The rival company, PMFTC accused Wongchuking-owned company of tax evasion, technical smuggling and other malpractice by a foreign research firm, AC Nielsen. Did they have substantial evidence against Mighty? If you may recall, they are spreading malicious lies over traditional media. 

According to a BIR tax fraud official that they have not received any derogatory confidential information against the company other than what we read in newspapers on the results of the survey conducted by AC Nielsen. The said survey was allegedly commissioned by PMFTC, and baseless facts, killing all local brands.

They claimed that Mighty's promoting mid-market brands since profit margins in the low-cost category are low. It means the local brands will be faced out to favor expensive brands. According to the officials said that the information is not true and they are spreading unjustified information to the public. And selling its products at a loss to gain more patronage, they are degrading the quality products of Mighty.

“MC is not selling at a loss and is gaining profit as evidenced by the more than P5.4 billion income and business tax payments to the BIR during the first nine months of the year, which payment is expected to rise to P8 billion by the end of the year,” said Oscar Barrientos, a retired judge and executive vice president of Mighty.

Mighty Corp paid excise tax up for 8 billion in 2013

Wholly Filipino tobacco company, Mighty Corp at least P8 billion for 2013 to Bureau of Internal Revenue.

  

This is according to Oscar Barrientos, executive vice president of Mighty. He said, "the tax we paid for the year 2013 just past reflects the jump in our market share and our fair share in the increased taxes on “sin” products."

He also said that despite charges in the news media and by some members of Congress against the company, no case has been filed in court.

Mighty paid P300 million in 2012, when its share of the local market of cigarette was a measly three percent. The said share went up since the government put into effect Republic Act 10352, or new sin tax law.


Mighty Corp. is been known as a minor player, pitched in more than P8 billion of the excise tax. And they also devoted to several Corporate Social Responsibility projects in the country which includes scholarship grants, and rebuilding churches.

Mighty Corp pushes the use of organic agri pesticide

Bulacan-based manufacturer of quality cigarette in the country, Mighty Corp promotes the alternative use for tobacco. In this initiative, it will help reduce Filipino farmers’ reliance on chemical-based pesticides, increase tobacco farmers’ income, and protect the environment.

According to Mighty's spokesperson and executive vice president, Oscar Barrientos said it was part of the company's commitment thru their corporate social responsibility thrust. He added that with a growing number of Filipino farmers were shifting from chemical-based to organic pesticides. 

“This trend should be encouraged,” he added.

Mighty Corp, which they collaborated with National Tobacco Administration (NTA), Fertilizer and Pesticide Authority (FPA) of the Department of Agriculture (DA) and University of the Philippines in Los Baños, Laguna (UPLB) in this project.

Mighty Corp paid 8 billion for the excise tax

Bulacan-based tobacco company, Mighty Corp increase their market share by paying at least 8 billion excise tax for the year 2013 to the Bureau of Internal Revenue. In 2012, they paid at least 300 million and signaled the rise of this low-priced cigarette firm. 

According to Oscar Barrientos, executive vice president of Mighty said that the excise tax that the company paid for the year 2013 just past reflects the jump in our market share and our fair share in the increased taxes on “sin” products. He added that the facts should put to rest false accusations to them has not been paying its correct taxes.

Barrientos pointed out, the BIR and the Bureau of Customs have cleared his company of any tax deficiency until February 2014.

Meanwhile, records from the BIR had shown that excise taxes from both cigarettes and alcohol products increased by 81.5 percent despite a decline in the number of sticks sold. Mighty Corp. was a minor player in the tobacco industry has been reaching out to a lot of people who are in need of help.