British American Tobacco, maker of Lucky Strike cigarettes, is making a comeback in the Philippines. The company pulled out of the local market nearly 4 years ago after a failed taxation case at the Supreme Court, which it says would have leveled the playing field in the local tobacco industry.
Now, British American Tobacco is back because it expects the Aquino government will institute the reforms it fought for in 2008.
"With the change in administration, very strong signals from the Aquino government that excise tax reform is on top of the agenda, the company made a decision to suspend that withdrawal and come back in full force," said James Lafferty, general manager of British American Tobacco Phils.
British American Tobacco was fighting a law that imposes higher taxes on cigarette brands that entered the market after 1996. That meant higher taxes for brands like Lucky Strike, which was introduced in 2001; and lower taxes for its competitors.
Lafferty said the proposed increase in excise taxes on tobacco, which is pending in Congress, will make it easier for them to compete.
