Senator JV Ejercito on Wednesday called on economic managers to consider raising taxes on tobacco products to offset the loss that would be incurred by suspending the excise tax on fuel.
“For me, there are a lot of people who are calling for the suspension of the TRAIN Law, especially the excise taxes on petroleum. My solution in order for us not to lose revenue is to get it from the tobacco tax,” Ejercito said.
Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, the excise tax on fuel can be suspended once the world price of crude oil reaches $80 a barrel.
Ejercito said that he had already suggested increasing the tax on tobacco products and lowering oil taxes during the debates on TRAIN.
“We will be hitting two birds with one stone,” he said in a mix of English and Filipino. “We will get much-needed revenue for the government, and at the same time, it will be a health measure that will cut the number of smokers.”
Opposition Senator Paolo Benigno Aquino IV said poor Filipinos are at the receiving end of every increase in the prices of goods and services due to the hastily approved tax reform measure.
He recently urged the Senate to address the rising prices to give relief to the poor who are already crying out for help.
The Agriculture department, meanwhile, said it will soon implement suggested retail price for certain agricultural products as a protection for consumers.
Agriculture Undersecretary Ariel Cayanan said among the agricultural products that will be covered by SRP are rice, meat and meat products, poultry, fish and fish products and eggs.
The list may include other agricultural commodities. In the past, agricultural commodities were excluded from SRP due to the very nature or products being fresh and highly perishable.
“I agree with Trade Secretary Mon Lopez that the prices of agricultural goods are changing every so often depending on demand and supply. We expect that the SRP will stabilize prices for commodities that are crucial for Filipino families and consumers,” he said.