HE PALACE is banking on the Senate to introduce changes to a committee-approved ‘sin’ tax bill, stressing the need to collect more revenues and discourage smoking and drinking among the public.
“We will have the opportunity to re-emphasize, during the
debates on the floor, the primacy of the health issue and how important
this measure is to expanding the government’s universal health care
program,” said Deputy Presidential Spokesman Abigail F. Valte in an
interview over state-run dzRB yesterday.
“The Finance department studied its proposed bill very carefully,” she pointed out, to counter the statement of Senator Ralph G. Recto, Senate ways and means committee chairman, that the P60 billion envisioned by the government from ‘sin’ tax reforms was “not realistic.”
The Senate will start plenary debates on Senate Bill (SB) 3299 today after Mr. Recto delivered his sponsorship speech on the measure last Wednesday.
Senate Majority Leader Vicente C. Sotto III said in a text message on Saturday a number of senators wished to interpellate Mr. Recto regarding SB 3299. Last week, Senators Alan Peter S. Cayetano, Panfilo M. Lacson and Franklin M. Drilon vowed amendments to the bill.
SB 3299 proposes two tax tiers for fermented liquor and four for distilled spirits. It provides three tiers for cigarettes packed by machine, to be reduced to two by 2020. It seeks to impose an 8% increase in tax rates every two years, to be reduced to only 4% by 2020. House Bill (HB) 5727, passed in June, proposes two tiers for tobacco products and three for alcohol products with an 8% increase in tax rates every two years until 2025.
The SB 3299 is expected to generate P15 billion in additional revenues, half of the expected take from the House-approved version.
HB 5727 earmarks majority of proceeds to universal health care, with 15% to fund alternative livelihood for farmers and workers in tobacco-producing provinces. SB 3299 will give 40% of proceeds to the Philippine Health Insurance Corp., 10% to the Health department and P1 billion for alternative livelihoods of tobacco farmers. -- Kathryn Mae P. Tubadeza
“The Finance department studied its proposed bill very carefully,” she pointed out, to counter the statement of Senator Ralph G. Recto, Senate ways and means committee chairman, that the P60 billion envisioned by the government from ‘sin’ tax reforms was “not realistic.”
The Senate will start plenary debates on Senate Bill (SB) 3299 today after Mr. Recto delivered his sponsorship speech on the measure last Wednesday.
Senate Majority Leader Vicente C. Sotto III said in a text message on Saturday a number of senators wished to interpellate Mr. Recto regarding SB 3299. Last week, Senators Alan Peter S. Cayetano, Panfilo M. Lacson and Franklin M. Drilon vowed amendments to the bill.
SB 3299 proposes two tax tiers for fermented liquor and four for distilled spirits. It provides three tiers for cigarettes packed by machine, to be reduced to two by 2020. It seeks to impose an 8% increase in tax rates every two years, to be reduced to only 4% by 2020. House Bill (HB) 5727, passed in June, proposes two tiers for tobacco products and three for alcohol products with an 8% increase in tax rates every two years until 2025.
The SB 3299 is expected to generate P15 billion in additional revenues, half of the expected take from the House-approved version.
HB 5727 earmarks majority of proceeds to universal health care, with 15% to fund alternative livelihood for farmers and workers in tobacco-producing provinces. SB 3299 will give 40% of proceeds to the Philippine Health Insurance Corp., 10% to the Health department and P1 billion for alternative livelihoods of tobacco farmers. -- Kathryn Mae P. Tubadeza
