Gov’t willing to settle for P40-B from sin tax

MANILA, Philippines – After senators watered down the sin tax bill in a recent committee report, the officials of the Aquino government said they are willing to settle for P40 billion as “minimum” additional revenues from alcohol and cigarettes.

In a press briefing on Wednesday, October 17, Finance Secretary Cesar Purisima stressed that the P40 billion will be key in fulfilling health care goals and in cutting demand for the “sin” products.

Sen Ralph Recto recently resigned from the Senate Ways and Means Committee after releasing a version that will generate P15 billion a year–about a quarter only of the original P60 billion goal.

“We will stick to the P60 billion but what we want is not what we always get. P40 billion is a minimum. It is a number that will allow us to attain our objectives of financing health care and to discourage sin products,” Purisima told reporters.

“Were hoping this would be passed within the year. There’s enough basis for it. We worked hard for this,” he said.

However, Bureau of Internal Revenue (BIR) Commissioner Kim Henares said the P60 billion would allow the government to attain its objectives faster.

Purisima, Henares and Health Secretary Enrique Ona met the Senators in a caucus on October 17 to discuss the sin tax issue.

Meanwhile, Purisima dismissed Senator Ralph Recto’s insinuations that there is a “Purisima-San Miguel” alliance because he is favoring alcohol companies such as San Miguel Corp.

“We don’t support name-calling. This is not a productive way to discuss an important issue,” he said. – Rappler.com

For related stories, read: