Gov’t can collect P30B from Mighty after JTI buyout deal – Dominguez
The extra revenues will fund Marawi rehabilitation plans.
Finance Secretary Carlos Dominguez III thanked the quick review and approval given by the Philippine Competition Commission (PCC) for the P45-billion buyout of embattled Mighty Corporation by Japan Tobacco International (JTI), saying it would allow the Philippine government to get hold of the tax dues quickly.
“We appreciate PCC’s quick action as this will mean that the taxes & penalties due to the Government will flow into its coffers as scheduled. This windfall of P30 billion is much needed to assist the displaced residents of Marawi, reconstruct the damaged portion of Marawi City, & to strengthen the Armed Forces capabilities against terrorists,” Dominguez said after the antitrust body announced that it saw no problems with the acquisition deal.
To recall, Customs agents uncovered billions of unpaid taxes from Mighty as it discovered that the cigarette producer used fake tax stamps and evaded other duties worth billions of pesos. Mighty then promised to pay P25 billion in lieu of facing multiple charges in court.
Dominguez has said that the government will likewise earn P5 billion more in taxes as JTI completes the purchase deal.