Big money lobby vs sin tax bill

By Macon Ramos-Araneta | Posted on September 17, 2012 |

Tobacco companies have set aside the “biggest lobby money” against the sin tax bill, which could result in watered-down version of the measure that proposed to increase taxes on cigarettes by 700 percent, Health Secretary Enrique Ona said on Sunday.
He said the bill, which was slashed in the House of Representatives from projected total revenues of P128.63 billion by 2016 to only P41.51 billion, is in danger of being cut down some more in the Senate where it is still pending.
“Our fear is a watered down bill. We want the original version because that is what we need. This money could go a long way to finance the Aquino administration’s universal health care program and improve health services in the country,” Ona said.
Health officials believe the tax hike will reduce the consumption of tobacco, which is among the major cause of non-communicable diseases. Smokers, especially the youth, will be dissuaded from smoking because of its high cost.
The Philippines has the most number of adult and youth smokers with ages ranging from 13 to 15 years old in Southeast Asia. Cigarette prices in the Philippines are the second lowest in the region next to Cambodia.
Senate President Juan Ponce Enrile, who hails from the tobacco producing provinces in the north, said the bill would prejudice the livelihood of more than two million workers in the tobacco industry.
He said the rise in prices of cigarettes will not stop people from smoking because they will just look for cheaper brand or smuggled cigarettes.
Fortunato Yabut, president of the Consumer group Ang Masa Bansa, claimed the high taxes would eventually be absorbed by the consumers and said the government would be imposing the high taxes without consideration of its impact on cigarette products.
“It is unfortunate that the government is pushing to increase taxes on cigarettes without looking at the welfare of the consumers. Are they even aware that the proposed 700 percent tax increase on low priced cigarettes will be absorbed by us?” Yabut said.
He said non-government organizations, doctors, foreign organizations, the health and finance department were pushing for approval of the bill, and he asked: “Why is it easy for these people to agree on the tax increase? It’s simple because non-smokers do not have to pay for it.”
“Our government officials should know that we, the consumers, are angry with the proposed tax increases on cigarette products. We strongly oppose this measure because it is excessive and unjust. If you want us to quit smoking, then you should just ban the product,” Yabut said.
He added: “For as long as cigarettes are legitimate products and smoking is still legal, then you cannot overtaxed cigarettes. Every Filipino in this country, rich or poor, has the right to smoke.”
Sen. Ralph Recto, chairman of the ways and means committee, which is conducting public hearings on the issue, said an increase is imminent but it will be “based on realistic assumptions to generate the right revenues for the health sector.”(END)