Senator Joseph Victor G. Ejercito is bent on refiling Senate Bill (SB) 1605 for inclusion in “Package 1B” of the TRAIN bill when Congress reconvenes in mid-January.
Ejercito indicated he need not wait for the Department of Finance’s (DOF) version of the second TRAIN bill to push passage of his earlier proposal providing upward adjustments in taxes imposed on tobacco and alcohol products, also known as “sin taxes.”
“I intend to pursue imposition of higher tobacco tax as a health and revenue-generating measure through SB 1605,” the senator told the BusinessMirror on Monday.
Ejercito admitted that he did not expect the DOF’s decision to junk the proposed higher tax rates imposed on harmful tobacco products.
“Though disappointed with the inclusion of a very low rate of tobacco tax, which caught me by surprise, I intend to push for a higher rate for Package 2 [of the DOF’s TRAIN bill],” Ejercito added.
The Senate and the House of Representatives, however, adjourned sessions on December 16, after ratifying the final version of the TRAIN bill’s Package 1 seen to raise over P130 billion to bankroll the Duterte administration’s massive infrastructure plan under its “Build, Build, Build” scheme.
TRAIN Package 1B is expected to be signed into law by President Duterte before the year-end to take effect by January 2018.
While it mandated downward adjustments in income taxes, the soon-to-be enforced TRAIN Package 1B will collect higher tax rates on tobacco, fuel, coal and mining operations.
Its early enforcement, however, may be derailed by legal questions owing to lack of quorum when the House of Representatives voted to ratify the bicameral panel’s approved version of the awaited money measure. ACT Party-list Rep. Antonio L. Tinio of ACT questioned the quorum, noting only 10 of 294 House members were present at the session hall when the TRAIN bill was ratified by both chambers of Congress on December 13.