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OPINION ONLY

The Amer Group in Finland is a multinational involved in many different businesses.
    The original company made paper products, particularly envelopes.
    The subsidiary, Amer-Tupakka manufactured Philip Morris brand cigarettes under contract. They also had a plastics factory in Denmark, and owned a major (Wilsons) American Sports Good chain.

1989–91: Philip Morris EEMA Long-range plans says:

Counter penal taxation proposals by activating experts in welfare economics.

* In Finland two studies are underway in cooperation with Amer-Tupakka (ATO): a smoking social cost/benefit study by the LTT, which is the premier Finnish research institute for economics; and a household expenditure study which compares smoking and non-smoking households.

Work with Amer-Tupakka in Finland ultimately to amend the ad valorem excise tax structure and increase the specific element to 90%, and include roll-your own (RYO) and pipe tobaccos in a phased program to equalize the tax burden over all tobacco products.

* As the Finance Minister, Mr. Liikanen, requires an agreed industry submission prior to negotiating changes in the tobacco taxation system, it is essential that a formula be agreed with Rettig that retains the support of Suomen Tupakka/BAT. As an interim step we are advocating the effective conversion of the smaller, additional tax element to a specific element while maintaining the specific minimums for total excise tax.

    * We are using Finland's well publicized determination to align itself with the EEC's 1992 unified market plan and the increased focus of our opponents on smokeless tobacco as leverage to persuade Rettig to endorse an industry proposal in advance of a major realignment of the total Finnish taxation system.