Philippines: Tobacco Firms Push Inputs to Sin Tax Bill

Source from:  the tribune Daily 11/29/2012

With the proposed sin tax bill just awaiting Senate approval, Philip Morris Phils. and Fortune Tobacco Corp. (PMFTC) said they were open to collaborating with the government and Congress on an excise tax system acceptable to all stakeholders. "What is important is that our legislators are (also) open to hearing the side of stakeholders like the farmers, the workers, the consumers, and small manufacturers," PMFTC president Chris Nelson said. The House of Representatives' committee on ways and means passed last month the amended version of House Bill 5727, or the "Restructuring of Excise Taxes on Tobacco and Alcohol." Philippine Tobacco Institute (PTI) president Rudy Salanga, however, said the figures under the revised measure were still very high and would have a deleterious effect on the livelihood of the 2.9 million farmers dependent on the tobacco industry. Under the amended version of HB 5727, the tax levied on low-priced cigarettes will go up from P2.72 to P22 in the second year of implementation, or a 700-percent increase. Because low-priced brands account for 63 percent of tobacco sales, a 700-percent increase would hurt tobacco farmers, whose produce is used primarily to manufacture low-priced cigarettes. The approved amended House version of the sin tax bill, likewise, provides that the low tier will increase by as much as 708 percent on the second year. Philip Morris International said there might be an increase in the prices of cigarettes once the proposed new sin tax measure becomes a law. Meanwhile, the World Health Organization (WHO) has appealed to the Philippine Senate to pass the sin tax bill and not to be influenced by the strong lobby of the tobacco industry. "You have the choice whether you want to vote for tobacco or go for the health and welfare of children, young wives, (and) young children. This is an opportunity for the Senate to be on the right side of history," said Dr. Soe Nyunt-U, WHO country representative. Enditem