A HOUSE leader on Monday defended the move of the House of Representatives to pass the proposed amendment to the Sin Tax Reform Act, saying the measure, once enacted, would be a balancing act of Congress to continue the country’s tobacco farming industry and promote public health by curbing smoking and generate more revenues.
Quirino Rep. Dakila Carlo Cua, chairman of the House committee on ways and means, said a unitary taxation is “unreasonable” as this is tantamount to imposing same amount of tax in buying either an imported Mercedes-Benz or owner-type jeep.
Cua made the statement as he backed the passage of House Bill 4144 that ABS party-list Rep. Eugene Michael de Vera filed to amend the Sin Tax Reform Act which proposed higher excise tax rates for tobacco products, aimed at retaining the present two-tier structure from going to the unitary tax system.
“That is as if imposing a million excise tax for Mercedes-Benz as against an owner-type jeep; imposing the same excise tax rate for both,” Cua stressed.
He explained the local manufacturer of owner-type jeep would be displaced, similar to Filipino tobacco farmers who stand to lose their livelihood under a unitary system that would be implemented starting January next year unless the Sin Tax Law was amended.
The Lower House approved the measure on second reading last week.
With the proposal to increase the cigarette tax rate for P32 for the cheaper brand and P36 per pack for high priced brand instead of the unitary tax of P30 per pack beginning next year, Cua said the proposal would protect local tobacco farmers, raise more revenues for the Duterte administration and promote public health because raising tax would help lessen the number of smokers.
He added at least 4.5-million people had quit smoking after the passage of Sin Tax Law because of higher excise tax.
House Deputy Minority Leader and Buhay Hayaang Yumabong (Buhay) party-list Rep. Lito Atienza agreed with the wisdom of the proposal not to impose unitary tax as this would kill the livelihood of tobacco farmers in the country.