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[av_heading heading=’Ping backs unitary sin tax’ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=”]
BY PRINCE GOLEZ
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Sunday, January 22, 2017
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MANILA – Sen. Panfilo “Ping” Lacson very strongly supports the unitary excise tax for tobacco products.
The Sin Tax Reform Act, formerly following a two-tier tax scheme, shifted to a unitary tax system this year. It now imposes a tax rate of P30 against all cigarettes.
“Whatever will benefit the health sector as well as the government’s revenue generation, I would support,” Lacson said. “Initially, I’d rather allow the present law to take its course, monitor and review the implications before taking any legislative intervention, but most importantly, prevent leakages in the sin tax collections.”
He said the present tax system is responsive to increasing revenue and has reduced the number of cigarette smokers. It was also accounted for government’s successful fight against tax evasion.
Citing data from the National Nutrition Survey, Lacson said that smoking prevalence among Filipinos, declined from 31 percent in 2008 to 23 percent in 2015, just three years after the implementation of the law.
Tobacco taxes also helped increase the national budget for health from P57 billion prior to the passage of Sin Tax Law to P123 billion last year, according to the senator.
“The Sin Tax Reform Act has been meeting its goals of bringing down cigarette and alcohol consumption; and raising revenues to finance the implementation of Universal Health Care programs and alternative livelihood for tobacco farmers,” he added.
A bill seeking a two-tier tax system for cigarettes has been filed in the House of Representatives.
It proposes to tax cigarette packs below P11.50 with P32 per pack. Those priced at P11.50 and above will be taxed P36 and a five percent annual increase./PN
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