Lawmaker: Sin Tax Bill Won''t Hurt Tobacco Farmers

Source from:  GMA News 11/29/2012

The proposed measure to impose a restructured excise tax on cigarettes will not harm tobacco farmers in the country, the House of Representatives said Monday. Cavite Rep. Joseph Emilio Abaya, author of the administration-backed House Bill (HB) 5727 or the "sin tax" bill, said that the local tobacco farmers should even expect their revenue to almost triple once the measure is enacted into law. "This will actually address doubts that this bill leaves out poor tobacco farmers," he said at a briefing. He added that 15 percent of the excise tax that will be collected by government through the proposed legislation will be "plowed back" to the farmers. HB 5727 proposes a unitary system of excise tax on cigarettes and alcohol. It seeks to gradually increase the tax on cigarettes to P30 per pack by the third year of its implementation. Last year, President Benigno Aquino III identified the bill, which is currently undergoing House committee deliberations, as one of his priority measures. Abaya further said that government can expect to stretch the P3.9 billion worth of revenues it currently collects from excise tax on sin products to P7.5 billion once the bill is signed into law. The bill will support tobacco farmers who want to explore other crop options, such as corn and barley, he added. Enditem