House panel to discuss increase on excise tax on tobacco products

The House Committee on Ways and Means is set to discuss on Monday, Nov. 26 measures seeking to restructure and increase the excise tax on tobacco products.

Nueva Ecija Rep. Estrellita Suansing, who chairs the panel, assured that all stakeholders will be consulted, as they deliberate on House Bills (HB) 4575 and 6648, authored by Albay Rep. Joey Salceda and Quezon Rep. Angelina ‘Helen’ Tan, respectively.

“Let’s balance the interests of all the concerned sectors. Let’s balance it, remember we already increased the excise tax in TRAIN 1 (Tax Reform for Acceleration and Inclusion),” she said in an interview.

TRAIN or Republic Act 10963, which was signed on Dec. 19, 2017, calls for the reduction of personal income tax, but imposes higher tax on sugary beverages, fuel, cars and tobacco.

The Suansing panel was supposed to discuss the measures last Wednesday but it was forced to suspend and eventually, adjourn the meeting after it failed to reach the required number of warm bodies to proceed with the discussion.

It was Ilocos Sur Rep. Deogracias Victor Savellano who questioned the lack of quorum, which prodded Suansing to suspend and adjourn the hearing.

Salceda’s HB 4575 seeks to restructure the excise tax on tobacco products. Under the bill, the schedule of cigarette excise tax is as as follows: in 2017, in 2018, in 2021. Salceda said the unitary tax “is expected to help the Philippines bring smoking prevalence rate down to lower than 20 percent, which is the goal of the Department of Health (DOH) and to sufficiently generate additional revenues to finance an essential health package for all Filipinos.”

Tan’s HB 6648 seeks to increase the excise tax on tobacco products, amending Section 145 of the National Internal in 2019, in 2020, and Revenue Code of 1997, as amended by Republic Act 10351 or the Sin Tax Reform Law.

“Primarily, the measure proposes to increase to P60 per pack the current cigarette tax rate of P30 per pack inasmuch as the implementation of the Sin Tax Reform Act or RA 10351 has been proven effective in minimizing if not totally stopping the smoking habit and in raising funds for public health,” Tan, chairman of the House Committee on Health, said.