BAT to double PHL leaf-buying volume in 2013

British American Tobacco (BAT), the maker of Lucky Strike cigarettes, on Thursday said it will buy some 3.6 million kilos of tobacco leaves in 2013, double its expected consumption for 2012.

 

“This year BAT is programmed to buy approximately 1.8 million kilos of [tobacco] leaf from the Philippines. We can confirm that the company will buy at least twice that volume, or roughly 3.6 million kilos, next year,” James Lafferty, BAT Philippines’ chief operating officer, said in a statement Thursday.

 

The company said the decision to double its buying volume was “in anticipation” of Congress’ passing a restructured excise tax on tobacco and alcohol products or “sin tax” law.

 

“We are very much encouraged by the recent approval of House Bill No. 5727 in the House ways and means committee, as well as President Aquino’s strong and unequivocal support for the immediate enactment of the measure,” Lafferty noted.

 

In March, President Benigno Aquino III certified HB 5727 as urgent.  

On Wednesday, the bill’s author, Cavite Rep. Emilio Abaya, sponsored House Bill 5727 on the floor. The measure is up for second reading.

 

“The bill will encourage more foreign investors because one key feature of the bill is leveling the playing field for both old and new players,” Abaya said in a text message to GMA News online. 

 

“Sin Tax Reform is long overdue for the Philippines,” said Lafferty. “HB 5727 will not only generate significant additional revenues for the country, but it will finally level the playing field in our industry.”

 

“Even though we are a new player, we are committed to the sustainability of Filipino tobacco farmers and as such we shall not only use this leaf locally but also in other international markets where we compete,” Lafferty added.

 

BAT earlier said it is ready to invest some $200 million in the country over the next five years provided the sin tax bill is passed. 

 

In 2009, the company deactivated its Philippine operations “due to unfair excise system that slapped higher excise on its brands compared with other brands.”

 

The company has been a strong supporter of the sin tax reform bill in the House of Representatives. —VS, GMA News