Lawmaker to speed up sin tax measure

Monday, February 13, 2012

CONGRESS has started discussing the administration’s version of the proposed sin tax reform bill through the House ways and means committee chaired by Davao City Representative Isidro T. Ungab.

Ungab said they initially held a briefing on House Bill 5727 last February 6 and will resume their discussion on the proposal today, Tuesday.

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HB 5727, authored by Cavite Representative Joseph Emilio Abaya, is the Aquino administration's version of the sin tax reform. It was earlier referred to Ungab's committee.

Ungab said public hearings in all other pending bills on sin taxes or the excise tax from products like alcohol and tobacco are ongoing.

The Davao lawmaker said that according to the Department of Finance (DOF), government can earn around P60 billion revenues once HB 5727 is passed.

Ungab said what Abaya authored was also the version of the Legislative Executive Development Advisory Council or Ledac.

Earlier, the World Trade Organization (WTO) had ruled as illegal the present sin tax measures being imposed by the Philippines.

Ungab said that in order to conform with the WTO standards, they have to restructure the sin tax.

President Benigno Aquino III had been pushing for the restructure of the sin tax to generate more income for the cash-strapped government, according to Ungab.

Because of this, Ungab said they are trying to speed up discussions and public hearings on sin taxes in the committee level.

Ungab, who took over the committee chairmanship late last year, said he hopes to pass the bill before the Aquino's State of the Nation Address in July or even earlier.