THE Department of Health (DOH) called Tuesday the proposal to amend the Sin Tax Law as a “five-step backward” move for the country’s fight against smoking.
In a press forum, DOH Spokesman Dr Eric Tayag said the health department believes that it would not bode well if Congress opts to amend the sin tax law sans a proper evaluation of Republic Act (RA) 10351.
“Nagbunyi ang lahat ng maipasa ang Sin Tax Law. Ito ay itinuring na three steps forward sa laban kontra paninigarilyo. Ngayon, ito ay magiging five steps backward on our gains. Sinususugan naming ang mga advocates sa kanilang mensahe sa mga mambabatas,” said Tayag.
Instead of immediately amending the law, the health official said they would agree to the proposal of the Department of Finance (DOF) to have an extensive evaluation of the effects of RA 10351 first.
“Bakit hindi natin hayaang magkaroon ng sapat na assessment ng batas muna? Dapat magkaroon ng sapat na pagaaral sa batas bago isipin ang pag-amyenda dito,” said Tayag.
Last Wednesday, House Bill 4144 was approved in the House plenary on second reading, just two days after it was passed by the chamber's ways and means committee.
In stark contrast, Senate ways and means committee chair Senator Juan Edgardo Angara said his panel is in no hurry to take up the bill and would prefer to study its provisions first.
HB 4144 seeks to keep the two-tiered tax structure but raise the tax rates at P32 per pack for low-priced cigarettes and P36 per pack for higher-priced ones beginning next year.
This is an amendment of the Sin Tax Law, which provides that a single tax rate of P30 per pack is already set to take effect on January 1 and shall be increased by four percent very year after.
Health advocates, then, called on senators to go against the actions of the House of Representatives and instead junk the measure.
“We are going to work with our champion legislators para masiguro na ang tamang buwis ang maipapasa sa Congress... at hindi po yung may dalawang klase pa na rate dahil napakaliit ng epekto nito,” said Framework Convention on Tobacco Control Alliance – Philippines (FCAP) Executive Director Dr. Maricar Limpin.
“We really hope that the Senate will not pass this bill. Do not even make it necessary for the President to exercise his veto power anymore. Just don’t pass it,” said Action for Economic Reforms (AER) representative Madeiline Aloria.
Based on AER’s study, passing the HB 4144 would only result to P146.79 billion in excise tax revenues while placing the smoking prevalence rate to 22 percent.
This in contrast to maintaining the provisions of the Sin Tax Law, which is set to bring an excise tax revenue amounting to an estimated P160.29 billion while lowering the smoking prevalence rate to 21 percent. (HDT/Sunnex)