British American Tobacco (BAT) has pulled its Pall Mall brand from the Philippine market due to a high excise tax rate imposed on imported cigarette products.

"There is no sense in continuing to sell the brand if there is no level playing field in the market," announced Jeremy Flint, BAT general manager. The company could not compete under the current excise tax system, where brands introduced after 1997 are imposed higher excise tax rates.
In February, the Department of Finance sided with the Bureau of Internal Revenue (BIR) and BAT competitors when it announced that Pall Mall would be imposed with the highest excise tax rate of PHP 26 (EUR 0.40) a pack.
Local manufacturer La Suerte Cigar and Cigarette Factory produces Pall Mall through a licensing agreement with BAT Philippines.
According to Flint, the British-owned company will continue to maintain its presence in the Philippines with Lucky Strike, Dunhill and Vogue. (sra)