After approving the measure increasing the excise tax rates on alcohol products, the House Committee on Ways and Means will resume its deliberations on proposals to hike the excise taxes on tobacco products.
The committee, chaired by Nueva Ecija Rep. Estrellita B. Suansing, will discuss on Monday the two filed bills—House Bill 4575 and HB 6648—which seek to restructure the excise tax on tobacco products by amending the National Internal Revenue Code, as amended by Republic Act (RA)10351, or the Sin Tax Reform Law.
Albay Rep. Joey Sarte Salceda’s HB 4575 and Quezon Rep. Angelina Tan’s HB 6648 are both proposing for a unitary excise tax rate of P60 for tobacco products.
Lawmakers said they proposed to increase to P60 per pack the current tax rate, from P30 as the implementation of the “sin” tax law has been proven effective in minimizing, if not totally stopping the smoking habit of Filipinos and in raising funds for public health.
Earlier, Ilocos Sur Rep. Eric D. Singson slammed moves by anti-smoking groups to pressure members of Congress into approving another round of tax increases on tobacco products. He said its passage will deliver the “coup de grace” to the dying industry that supports the livelihood of millions of Filipinos in three Luzon regions.
Singson, head of the Solid North Alliance of Northern Luzon congressmen, said lawmakers representing the organization will “strongly oppose” legislative measures that seek to increase tobacco excise tax rates.
Approval
The House of Representatives is expected this week to vote on HB 8618, which seeks to raise the excise tax on alcohol products, after the measure was sponsored on the floor by Suansing. The bill seeks to increase the excise tax imposed on distilled spirits by P6.60, compared to what is implemented under RA 10351.
Starting January 2019, an ad valorem rate of 22 percent including specific tax rates per proof liter of P30, P35, P40, P45, from 2019 to 2022 will be imposed on distilled spirits; and it will be increased by 7 percent annually starting 2023.
Currently, RA 10351 is imposing a P22.40 specific tax and an ad valorem tax of 20 percent on distilled spirits.
The committee also approved a shift to a unitary rate of P650 plus ad valorem of 15 percent for sparkling wines, compared to the two-tiered system under RA 10351. It will be increased by 7 percent annually starting 2023.