The Department of Finance said the government expects to get as much as P58.5 billion pesos of incremental revenues to the government coffers in 2012 from excise tax in cigarettes under the proposed sin tax reform package filed by Iloilo Rep. Niel Tupas and Batanes Rep. Dina Abad.
Additional increases are expected at P72.4 billion pesos in 2013 and P65.5 billion pesos in 2014 when the House of Representatives approves the proposals of Abad and Tupas.
The proposal of Batangas Rep. Mandanas, who is the Chair of the Committee on Ways and Means, will result to incremental increase of P44.24 billion pesos in 2012. Meanwhile, the proposed sin tax proposal of Antique Rep. Paolo Javier will lead to P540 million pesos, the lowest incremental revenue impact among the proposals for that year.
The agency also reported that the proposed sin tax measure of Ilocos Sur Rep. Owen Singson will not result to any increase.
The Committee on Ways and Means asked the DOF to present its comparative computation of the incremental revenue and projected price increases under the different sin tax proposals during the hearing of the Committee at the House of Representatives today.
“This will bring the government much-needed relief as we grapple for resources that Instant Drug hair drug testing Services: esa carries a full line of instant drug testing kits. will deliver social protection measures to our fellow Filipinos, especially the poor who will bear the brunt of economic dislocation with growing instability around the globe,” said Dr. Maricar Limpin, Executive Director of Framework Convention on Tobacco Control Alliance Philippines (FCAP).
FCAP is supporting the tobacco tax proposals of Tupas and Abad that seek to increase the excise tax of low priced cigarettes brands at P14 per pack and P28.30 per cigarette pack of high priced brands by January 1, 2012.
The excise tax for low-priced brands will increase to P22 while high priced brands will increase to P30 by January 1, 2013. These will be raised to a uniform rate of P30 the following year before adjusting to the current value of cigarettes according to the Consumer Price Index in 2015.
During the Committee presentation, the DOF also shared that cigarette prices will increase by 83% in 2012 under the Abad and Tupas proposals.
“This is long overdue as the cigarette companies have been enjoying favourably in the existing tax system making the average price of cigarettes in the Philippines as among the lowest in the region. It is thus, not surprising, that tobacco-related diseases, among which are cancer, heart ailments, hypertension, emphysema, occupy eight of the top ten causes of deaths in the country,” explained Limpin. (END)
Related releases:
http://www.businessmirror.com.ph/home/top-news/8914-drastic-hike-in-sin-taxes-proposed?tmpl=component&print=1&layout=default&page=
http://www.abs-cbnnews.com/business/03/21/11/drastic-hike-‘sin-taxes’-proposed
