AKO-Bicol party-list Rep. Rodel Batocabe on Monday withdrew his proposed measure proposing excise tax on cosmetic products and services such as liposuction, facelift, nose job, and other similar services.
Batocabe said his proposal was intended only as an alternative to the plan of government to increase tax on petroleum products expected, according to him, to hurt the poor.
Batocabe’s proposal drew sharp rebuke from the public, especially from the netizens, denouncing his bill “stupid.”
“In light of the intense controversy generated by our proposal to provide an alternative to the excise tax on petroleum and the recent statement of Secretary Ben Diokno that the government has enough funds for now, we deemed it prudent not to push for the so-called vanity tax,” Batocabe said.
“As representatives of our people mandated by our Constitution to identify sources of revenues for the government, the vanity tax was proposed in good faith to spare our people from the scourge of imposing excise taxes on petroleum. But then, we do realize from the sentiments that taxing beauty products would also adversely affect certain sectors which, according to some, would also deprive them of their basic happiness. Hence, this decision,” Batocabe said.
Nevertheless, Batocabe said he would continue to oppose the government’s effort to impose excise taxes on petroleum products.
“…even as we shall also look for other ways to help the government raise revenues…we shall devote our efforts to ensure efficiency in tax collections and plug leakages in the petroleum and beauty industries, which according to market analysts, could run to billions of pesos. As a matter of fact, there are reports that Vat [Value Added Tax] collection efficiency is way below 50 percent,” Batocabe said.
Even if he failed to provide data to back up his proposal so it was withdrawn, Batocabe urged the Bureau of Internal Revenue to address the tax leakage on beauty products and cosmetics.
He said: “We hope the strong sentiment generated against taxing beauty products and services will transform into encouragement for our people to urge the BIR and the Bureau of Customs to collect taxes more effectively and efficiently in the oil and beauty industries.
“After all, these industries owe their large profits from our people.”