Group backs bill raising tobacco, alcohol taxes
Credit to Author: ANNA LEAH E. GONZALES| Date: Fri, 25 Jan 2019 16:18:50 +0000
An advocacy group has supported the proposed increase in excise taxes on alcohol and tobacco products.
“Sin taxes prove to be both pragmatic and crucial as a policy measure. This measure will serve to simultaneously generate much-needed revenues and curb the consumption of these harmful commodities,” the Foundation for Economic Freedom (FEF) said in statement.
President Rodrigo Duterte recently certified as urgent Senate Bill 1599 filed by Senator Emmanuel Pacquaio. The bill seeks to increase the excise tax of tobacco to P60 per pack and alcohol to P40 per liter.
“President Duterte has already certified the measure as urgent. Likewise, we call on Congress to pass this measure that will allow us to make a significant investment in our country’s health and, ultimately, the nation’s long-term development,” the group said.
FEF is a public advocacy organization dedicated to advancing the cause of economic and political liberty, good governance, secure and well-defined property rights, market oriented reforms and consumer protection..
It said the P60-billion revenue seen from increased alcohol and tobacco taxes is crucial in funding the soon-to-be-implemented Universal Health Care law. “As it stands, over P40-100 billion must be raised in order to sustain this monumental health sector reform,” FEF said.
The group said studies have shown that excise taxes are the most effective means of reducing the economic cost of tobacco and alcohol consumption. “Not only must we
address the health burden that these sin products pose, but it is also in the government’s best interest to minimize the negative externalities which can hamper the labor force’s productivity,” FEF said.
Under the Tax Reform for Acceleration and Inclusion law, cigarettes were slapped with a tax of P32.50 per pack last year; P35 this year; P37.50 in 2021; and P40 in 2023. Excise taxes will increase by 4 percent every year thereafter.
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