SENATORS are mulling over an appeal by health advocates for Congress to enact remedial legislation imposing higher tobacco tax rates to “save 1 million Filipinos from [the] dangers of smoking.”
Sen. Juan Edgardo M. Angara, who chairs the Senate panel tasked to review and endorse tax impositions, on Tuesday left the door open for the senators’ consideration of the health advocates’ proposal calling for upward tobacco tax adjustment by law.
In an interview, the chairman of the Senate’s Ways and Means Committee signaled the panel’s possible endorsement of the advocates’ plea for plenary deliberation when Congress, which adjourned on December 13, reconvenes next month.
“We have had one hearing a few weeks ago and can hold another one if necessary once Congress resumes in January 2019,” Angara told the BusinessMirror.
Angara admitted, however, that the committee has yet to firm up a consensus on the tobacco tax rate adjustments.
Asked if the Senate panel has a ballpark figure on higher tobacco tax rates being considered for inclusion in the bill, the senator indicated the Committee is still working on it.
“None yet,” Angara said, explaining that “there has only been one hearing so far.”
Last month, the lobby group Action for Economic Reforms (AER) criticized some members of the House of Representatives and the Senate for using delaying tactics as a way of obstructing passage of the bills raising the tobacco tax. The group said these legislators are aware of a few session days remaining before the adjournment of Congress.
Their statement was issued as the House of Representatives and the Senate Ways and Means committees continued to hold separate hearings on the tobacco tax bills.
“It is disheartening to note that even after several decades, the legislators allied with the tobacco industry still use the age-old but weak arguments of adverse impact on the tobacco industry and illicit trade resulting from the tax increase. The experience from the tobacco tax reform of 2012, which introduced very steep rates, shows that the tobacco industry is alive and well, and that political will and relentless tax administration effort contained illicit trade.”
AER expressed its support for House Bill 6648 authored by Rep. Angelina Tan, which proposes to increase the excise tax on cigarettes to P60 per pack and similarly proposed in Senate Bill 1599 authored by Sen. Manny Pacquiao. Senate Bill 1605 written by Sen. Joseph Victor G. Ejercito proposes to increase the cigarette excise tax to P90 per pack, which the group also supports.
AER and the “sin” tax coalition nonetheless said they recognize how the House leadership and Angara are facilitating the passage of the bills in both chambers.
The Department of Health has publicly expressed its support for Ejercito’s proposal. “Whatever issues are raised by the legislators of the House of Representatives about the competence of PhilHealth and the Department of Health to judiciously spend the money coming from the tobacco tax increase should be addressed. However, raising tobacco tax is clearly urgent. Not only will the bill lower smoking prevalence in the country; it will also generate a significant amount of funding for the universal health care bill, which is expected to be signed into law by the end of the year,” explained AER’s Diosana.
Image credits: Alysa Salen