Philip Morris receives EU farm subsidies?

A bit dated but still relevant and sad, in addition to other multinational corporations taking money away from local farmers in developing countries by receiving farm subsidies, Philip Morris is receiving tax breaks for using sugar, which makes it easier for new smokers such as women and children to inhale them. For more on the EU, corporations and subsidies click here.


From the Sunday Express, 29/1/06
Philip Morris benefiting from EU subsidies

Tobacco giant Philip Morris is pocketing millions of pounds in taxpayers' cash under Europe's Common Agricultural Policy, reports the Sunday Express. Philip Morris gets £4.4 million a year in farm subsidies because it uses sugar products in its cigarettes. Philip Morris is just one of a long list of multinational companies which benefit under the EU's controversial farm policy.

The EU spent £30 billion on the CAP in 2004 - more than 40% of the whole EU budget with billions going to support the sugar industry. The policy guarantees artificially high prices to EU sugar producers. When multi-national manufacturers export sugar or processed goods using sugar, they are entitled to refunds on the difference between the EU price they have to pay and the lower world market price.