The Antimonopoly Committee of Ukraine (AMC) continues to consider the case on government aid to PrJSC Philip Morris Ukraine, opened on January 3, 2020 due to an appeal from one of its competitors.
According to the information released on the committee’s website, in autumn of 2019, the committee received an application from one of the tobacco producers to verify information on illegal government aid due to the cancellation of the tax obligations previously determined for Philip Morris Ukraine by the State Fiscal Service.
The cancellation of tax obligations is one of the forms of government aid due to the law on government aid to business entities.
“Having received the application, the committee sent a request to the State Fiscal Service in accordance with the law. However, in response, the service provided explanations on the facts of tax obligations cancellation, but did not submit the necessary statement, which is a direct basis for initiating a government aid case,” the committee said.
Currently, the committee is analyzing the information provided by the parties of the case and other persons to make a decision. The committee also drew attention to the fact that the initiation of a government aid case is not the final conclusion about its admissibility or inadmissibility.
Philip Morris International is one of the world’s largest manufacturers of tobacco products. It produces cigarettes in more than 50 factories, sells them in 180 countries.
In Ukraine, the company has been operating for more than 20 years. It manufactures products in a factory in Kharkiv region.