Northern bloc pushes 3-tier excise tax

MANILA, Philippines - The Northern Luzon bloc in Congress is pushing for a three-tier excise tax system and a more reasonable excise tax hike for tobacco products as a compromise proposal to House Bill 5727, as amended.

La Union Rep. Victor Ortega said they brought up their proposal during a recent meeting with Speaker Feliciano Belmonte Jr. who earlier projected the approval of the sin tax reform bill before the congressional adjournment next month.

Ortega said they expect the Speaker to relay their compromise proposal to the proponents and sponsors of HB 5727 which has been amended to adopt a two-tier excise tax structure from the original unitary system.

“The Speaker will talk to them,” said Ortega.

He said their proposal is part of the firm and consistent efforts of members of the Northern bloc to promote the interest of tobacco farmers in their districts.

“We are fighting not for any interest. We are fighting for the tobacco farmers,” said Ortega.

He said they will wait for the reply of the proponents of the sin tax reform bill to their proposal for a three-tier excise tax structure and a more reasonable excise tax increase for tobacco products.

“Our counter-proposal is that there should be three-tier structure for low, medium and high classifications, and for them to make the excise tax increase reasonable. Unlike their original proposal of unitary tax system that those paying a P3 tax now will be paying a high P30. That’s a 1000 percent tax increase. Sabi namin wag naman, make it reasonable in all classifications,” said Ortega.