National tobacco companies accuse Massalin and BAT of monopolistic practices

In the context of the debate on the Ley Bases, this fierce dispute has been revealed in all its magnitude and has become a central issue of public debate. The main conflict is centered on the tax regime under which the tobacco market operates. According to international companies, the previous scheme granted an extraordinary benefit to local tobacco companies, allowing them to gain market share by selling at a lower cost.

Now, local tobacco companies are accusing them of a “planned deception” involving their international competitors, politics and the judiciary, promoting a scheme that allows for systematic price reductions to the detriment of public coffers. Leading this claim is Tabacalera Sarandí, one of the main national companies, led by Pablo Otero, who has denounced a “serious persecution.”

The Argentine Tobacco Union for SMEs (UNTAPYA) accused the multinationals Massalin (Philip Morris) and British American Tobacco (BAT) of jointly reducing their prices “in order to monopolize the market and thus eliminate all competition.”

According to UNTAPYA, the recently approved Ley Bases implies an increase in the cigarette tax from 70% to 73%, which has caused a significant reduction in the prices of the products of the two international companies. “This strategy will result in a significant drop in tax collection, negatively affecting subsidies to tobacco producers, ANSES funds and the resources of the Ministry of Health, which now faces higher expenses due to the increase in tobacco consumption,” they said.

Tobacco companies say that there was a planned scam, in which tobacco-producing provinces, Congress, the judiciary and various political actors acted in coordination with the big tobacco companies to repeal the minimum tax and favour their own interests.

Critics of the tobacco chapter in the Ley Bases stated that the arguments of the new regulatory framework promised to reduce consumption, increase tax collection and even contribute to the health system, objectives that would not be met in practice. “However, the report published by the ABECEB Consulting Firm, whose president is the former Minister of Production and Labor, Dante Sica, mentor along with Minister Federico Sturzenegger of the current Massalin 3 Law, promised an extra increase in tax collection of 315 million USD this year and 1.4 billion USD more between 2025 and 2026,” they explained.

Finally, they added that, contrary to the decision of Philip Morris and BAT, they are forced to increase their prices to cope with the increase in the tax. “These measures put national companies at a disadvantage compared to multinationals, damaging public coffers and benefiting foreign interests,” they concluded.

How cigarette prices have changed since July 27

MASSALIN PRICES

MARLBORO

• Marlboro Red Box 20 $3.620
• Marlboro Red KS 20 $3.190
• Marlboro Red Box 12 $2.170
• Marlboro Blue Coral Purple XL Box 20 $3.470
• Marlboro Vista Limited Edition Box 20 $3.470
• Marlboro Vista Purple Fusion Box 12 $2.080

CHESTERFIELD

• Chesterfield Red KS 20 $2.010
• Chesterfield Red Box 10 $1.190
• Chesterfield Blue Purple Coral Motion Box 20 $2.450
• Chesterfield Blue Purple Motion KS 20 $2.070
• Chesterfield Blue Motion Box 12 $1.450

MARLBORO CRAFTED

• Marlboro Crafted Forward Box 20 $1.350
• Marlboro Crafted Red KS 20 $1.350
• Marlboro Crafted Red Box 20 $1.650
• Marlboro Coral Box 20 $1.650
• Marlboro Crafted Blue KS 20 $1.650

PHILLIP MORRIS

• Philip Morris Box 20 $2.730
• Philip Morris KS 20 $2.400
• Philip Morris Box 12 $1.620
• Philip Morris Blue Spin Box 20 $2.790
• Philip Morris Random Blue Spin Box 12 $1.670

HARMONY

• Harmony Colorados Gold Black KS 20 $2,010