House solons oppose Recto sin tax bill

MANILA, Philippines – Some House members have vowed to oppose the Senate ways and means committee’s version of a measure seeking to hike taxes on “sin” products, including tobacco and alcohol.

The committee, chaired by Senator Ralph Recto, submitted to the plenary Senate Bill 3299, which seeks to generate P15 billion to P20 billion additional revenues in the first year, down by about half from the P31 billion approved by the House of Representatives in June.

“Recto’s proposal is watered down. We will stick to the House version,” Western Samar Representative Mel Senen Sarmiento said.

Eastern Samar Rep. Ben Evardone, chair of the House committee on public information, also said that the House won’t “back down” on its position. “The campaign of the government for good health and universal health care will fail if we adopt the Senate version.”

Recto has come under fire for his committee’s proposal, which uses a 3-tier tax system for cigarettes, and 3- and 4-tier for fermented liquor and distilled spirits, respectively. These dilute the 2 tiers for cigarettes and 2 and and 3 tiers for fermented liquor and distilled spirits under House Bill 5727, authored by Cavite Rep. Jun Abaya.

While other lawmakers critized Recto’s bill, Davao City Rep. Isidro Ungab, chair of the House committee on ways and means, said he would rather wait for the final Senate version of the sin tax measure.

“The committee report will still undergo debates and perhaps amendments at the plenary,” Ungab said.

The Palace lauded the passage of the Abaya bill in June. However, it is still pushing for the original proposal of the Finance department, which seeks to raise P60 billion additional revenues for government through a uniform tax rate.

President Benigno Aquino III has asked Congress for “solidarity” in passing sin tax reforms. He said additional revenues from higher sin taxes are vital to the roll out of the government’s universal health care program.

Recto said he is open to whatever amendments other senators will propose to his bill.

He maintained, however, that his version is “realistic, reasonable and responsible,” noting that high taxes on sin products could lead to smuggling. – Rappler.com

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