Some of the fruits on a tree are more accessible than the others because they lie low on the branches. Because of this attribute of greater accessibility, low-lying fruit is the name given to things—targets, objectives, goals—that are attainable with little or no difficulty. Thus, individuals are more disposed to go after low-lying fruit rather than highly placed fruit.
There are low-lying fruits in almost every aspect of human endeavor. Making laws is no exception. In any society there are so many remedial or corrective interventions by the legislature. Some of these things are in the area of taxation.
Some taxes are either inadequate or excessive with respect to certain classes of people and incomes. Whereas some activities are heavily taxed, others have escaped taxation completely. And some tax laws are so worked as to invite confusion and misinterpretation.
Some of the lowest-lying of the taxation-related low-lying fruit are taxes that clearly are inadequate in relation to the character or use of the taxed things or activities. Cases in point are taxes on things or activities that are generally regarded as unhealthy, dangerous or conducive to immorality.
Boxer-turned-legislator Manny Pacquiao recently filed in the Senate a bill seeking to increase sharply one of the ‘sin taxes’ – the tax on sale of cigarettes. The tax was clearly inadequate, said the Senator from General Santos City. He hinted that Congress’s generous treatment of the cigarette manufacturing industry was traceable to the successful work of the industry’s lobbyists.
Clearly, pushing for increases in the excise taxes on cigarettes was low-lying fruit. So high are cigarettes on the Department of Health’s list of harmful-to-health things that proposing tougher tax treatment of cigarettes was practically a no-brainer. Not only would the inelastic demand for cigarettes – economists’ term for the continued high demand for cigarettes despite increases in their prices – make higher excise taxes produce higher government revenues, but the nation’s savings in terms of reduced spending on the treatment of lung cancer and respiratory-disease cases would be greatly enhanced. In proposing sharp increases in the excise taxes on cigarettes Manny Pacquiao did not blaze a new trail or do anything that was not already widely recognized.
Low-lying fruit or not, no-brainer or not, Senator Pacquiao nonetheless deserves commendation for trying to do something about a situation that has long cried out for correction, to wit, the inexplicably generous attitude of Congress toward the tax status of the Philippine cigarette manufacturing industry. Considering the inelastic demand for cigarettes in this country, there is no acceptable explanation for the demonstrably lax tax treatment of cigarette sales.
With his tax measure, Manny Pacquiao, the man with world championships in eight different boxing divisions, is trying to fly high. During his first year and a half in the Senate, Mr. Pacquiao has been flying low, unquestionably supporting every Duterte administration proposal and trying hard to participate credibly in hearings and debates on matters like national security and bureaucratic performance. With his tax measure he has switched to a high-flying stance.
Keep trying to fly high, Senator Pacquiao. Even if you have to stick to the low-lying fruit.
E-mail: romero.business.class@gmail.com
