British American Tobacco (BAT) has lost a battle with the Philippines Supreme Court, in its fight to try and deem part of the country's current legislation on tobacco as unlawful.
According to BAT - the manufacturer for cigarette brands Lucky Strike Filter, Lucky Strike Lights and Lucky Strike Menthol Lights - section 145 of the National Internal Revenue Code (NIRC) is unfair as it levies higher taxes on cigarette brands which entered the market after 1996.
Under section 145, cigarettes are placed into four different tax categories according to the net price they retailed for in October 1996. The tax has since been frozen, despite price increases.
What the BAT is objecting to, however, is the rule which states that brands introduced after January of 1997 must be taxed according to their current net retail price - meaning that the brands BAT introduced in 2001 have been trapped in the highest tax bracket due to their "luxury" status.
Despite BAT's argument, the Philippines Supreme Court has decided not to rule that the tax is unlawful, with a 17-page resolution on the issue branding BAT's claims as "untenable" and "misleading".
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