Higher tobacco excise tax seen to hit farmers

Lawmakers from tobacco-growing provinces in Northern Luzon asked the Senate to study the negative impact of the government’s plan to raise anew the excise taxes on tobacco on farmers.

The lawmakers, in a letter sent to Senate President Vicente Sotto III on Oct. 8, 2018, expressed concern over the continued call of the Department of Finance, Department of Health and some groups to increase the tax on tobacco.

The lawmakers belong to the Northern Luzon Alliance in the House of Representatives who represent the tobacco-growing provinces.

“It is our shared responsibility as members of the NLA to protect the interests of our constituents who depend on the tobacco industry. This industry has been providing livelihood for them and their families, and this will continue for many years to come,” they said.

“We are saddened by the proposals to raise the excise tax rates by more than 100 percent. Such a move will certainly affect our constituent-tobacco farmers who are still struggling from the loss of income as a consequence of RA 10351 or the Excise Tax Reform Law of 2012,” they said.

The tobacco excise tax rates were increased under the Tax Reform for Acceleration and Inclusion that took effect in January 2018.

Topics: tobacco , excise tax , tobacco farmers , Senate , Northern Luzon Alliance , House of Representatives , RA 10351 , Excise Tax Reform Law of 2012 , Tax Reform for Acceleration and Inclusion
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