Local cigarette sales are down 10 to 15 per cent this year over last year caused largely by higher prices due to increased excise tax and lesser disposable income of consumers.

Chris Nelson, managing director of Philip Morris Philippines Manufacturing Inc (PMPMI), said that the tobacco market has been weak.
Nelson blamed the drop in sales to the combined factors such as the increased in excise tax as mandated under Republic Act 9334 that correspondingly caused prices to shoot up and lesser disposable income of consumers that led to lower consumption. That is why Nelson said that moves to change RA 9334 before 2011 is “premature and completely uncalled for” since the existing law has already provided for an increase in the tax rates for cigarettes. (sra)