Skewed tax rate opposed
By Macon Ramos-Araneta | Posted on September 11, 2012 |
SENATE President Juan Ponce Enrile on Monday vowed to block the “distorted nature” of the cigarette tax increase being pushed by the House of Representatives and the government’s finance sector.
Enrile however clarified that he is not against measures to generate additional revenues for the government, but said he cannot allow unreasonable and unjust taxation.
“I am in favor of increasing taxes, but it must be up to a reasonable level to be determined by us,” he told newsmen at the regular “Kapihan sa Diamond Hotel.” The government proposed to increase by 700 percent the tax on low-priced cigarette.
The lawmaker said taxes must be equitable. “We can’t tax the poor similar to the rich. Their capacity to pay is so different,” he said. “So, let’s study and come up with reasonable measure that will not shock the market, and the economy.”
Enrile said he had discussed this matter with Senator Ralph Recto, chairman of the senate committee on way and means who’s conducting public hearing on the proposed measure to re-structure excise tax on the so-called “sin products.”
“He (Recto) said he is trying to craft a tax measure that will be fair to the government, to the people and to those that raise the golden egg,” he said.
Apart from the planned tax hike, health issues have also muddled the bill on cigarettes.
While health advocates have blamed smoking as the No. 1 cause of lung cancer deaths in the country, Dr. Tony Dans of the UP College of Medicine told senators that 60% of lung cancer cases are caused by air pollution.
While smoking is a major cause of lung cancer, he said it is air pollution which “should be causing about 60% of the lung cancer” cases. (END)
Enrile however clarified that he is not against measures to generate additional revenues for the government, but said he cannot allow unreasonable and unjust taxation.
“I am in favor of increasing taxes, but it must be up to a reasonable level to be determined by us,” he told newsmen at the regular “Kapihan sa Diamond Hotel.” The government proposed to increase by 700 percent the tax on low-priced cigarette.
The lawmaker said taxes must be equitable. “We can’t tax the poor similar to the rich. Their capacity to pay is so different,” he said. “So, let’s study and come up with reasonable measure that will not shock the market, and the economy.”
Enrile said he had discussed this matter with Senator Ralph Recto, chairman of the senate committee on way and means who’s conducting public hearing on the proposed measure to re-structure excise tax on the so-called “sin products.”
“He (Recto) said he is trying to craft a tax measure that will be fair to the government, to the people and to those that raise the golden egg,” he said.
Apart from the planned tax hike, health issues have also muddled the bill on cigarettes.
While health advocates have blamed smoking as the No. 1 cause of lung cancer deaths in the country, Dr. Tony Dans of the UP College of Medicine told senators that 60% of lung cancer cases are caused by air pollution.
While smoking is a major cause of lung cancer, he said it is air pollution which “should be causing about 60% of the lung cancer” cases. (END)
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