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Saturday, December 18, 2004
P17.5B revenues eyed from ‘sin’ taxes
By Chris Navarro
CLARK ECOZONE -- The bicameral conference committee's approval of the excise tax on tobacco and alcohol products will bring in "fresh revenues" amounting to P17.5 billion yearly, said second district Representative Juan Miguel "Mikey" M. Arroyo.
Congressman Arroyo, who was the guest of honor during the unveiling of the P50-million theme park marker near Clark ecozone's main gate, said the "sin tax" measure will bring new hope and a brighter future for the Filipino people.
The bicameral committee on Thursday ratified the "sin tax bill", which may be signed into law by President Arroyo before Christmas.
The tax measure is the "centerpiece" of eight tax measures that Malacañang has been asking legislators to pass to rescue the country from financial crises.
"We ratified the 'sin taxes', which will ultimately give more funds to the national treasury and, because of this, I feel-little by little-that we will be veering out of the so-called 'fiscal crisis'," Congressman Arroyo said.
Congressman Arroyo, a co-author of eight tax measures, said the tax measures will enable the government to avoid a debt default in three years.
The National Government needs about P80 billion additional revenue every year to avoid a debt default.
"We did it (approval of the bill) almost over night sessions. So, at least, alam ninyo (you now know) that your congressmen are working hard for you. Malaking bagay po yan (That is a big thing) because it will generate at least P17.5 billion in revenues and it will help provide funds for our national treasury," Arroyo said.
Right now, Arroyo added, those certified as urgent by the Palace are the tax measures.
"However, the most contentious are the 'sin taxes' and we already finished it in the bicameral conference committee. We ratified it the same night and we are moving forward," Arroyo said.
Arroyo explained that low-end cigarettes would be slapped a tax of P2 per pack; medium-end cigarettes, P6.35 per pack; high-end cigarettes, P10.35 per pack; and premium cigarettes, P25 per pack.
He added that the rate would be adjusted every two years until 2011. The adjustment has been set at 3.6 percent of the existing rate plus 16 centavos.
"This will be good for the international financial community. They will see that the Philippines is trying to put everything in order. This is very good news. Hopefully the bill will be signed into law by the end of the year," Arroyo added.
"I bring you (Filipinos) a message of hope, meron pong pag-asa ang atin bayan (there is hope for our country), especially with the tax measures being worked on by the lower house. I feel that we will have a brighter tomorrow," Arroyo said.
He also brushed aside reports that the country's economy is at the brink of collapse.
"I hope you don't believe the doomsayers that claim that our economy is hitting the pit falls. We will cross swords with the doomsayers and we will claim victory because of these tax measures," Arroyo said.
(December 18, 2004 issue)
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Arroyo performance rating slid further