JAN.

24, 2012 DATE

NR # 2658C
REF. NO.

Approval of sin tax bill priority of committee on ways and means

The approval of proposals to restructure the excise taxes on alcohol and tobacco products will be the main priority of the House Committee on Ways and Means in the coming days. Rep. Isidro Ungab, Chairman of the Committee on Ways and Means, said Rep. Eric Owen Singson, Jr. (2nd District, Ilocos Sur), Chairman of the Subcommittee on National Internal Revenue, has committed to present his panels report on pending sin tax bills to the mother committee by January 31, 2012. In other words this week, the subcommittee will wrap up its discussions and start making its report to the mother committee. I think the January 31 commitment is reasonable, Ungab said. So far, he said there are 10 sin tax proposals pending in the Subcommittee on National Internal Revenue. Ungab said the Malacaang version of the sin tax bill is expected to be filed this week by Liberal Party Rep. Joseph Emilio Abaya (1st District, Cavite). Ungab said the Palace proposal will be referred directly to the Committee on Ways and Means. It will not be taken up anymore by the subcommittee. Its the mother committee that will take it up. We have limited time already. By November this year, the election fever is expected to heat up. Probably by June, the sin tax bill may have already been taken up in the plenary. Ungab said the House will do its best to pass a new version of the sin tax law. Matagal-tagal na rin ito, 16 years na. Ungab assured not to preempt the Subcommittee on National Internal Revenue from tackling the contentious issues in the pending excise tax bills. At the same time, he vowed to also check on the Palace proposal. Being part of the administration, I am duty-bound to support the administration measure, and as committee chairman, I also have to listen to all stakeholders and sectors involved, Ungab said. As to the concern of tobacco farmers that their livelihood will be affected by the enactment of new excise tax rates, Ungab said this will form part of their deliberations.

JAN. 24, 2012 DATE

NR # 2658C
REF. NO.

There are position papers on that, and it will also depend on what the House will approve because a certain amount of the taxes will go to either agricultural production or health services, Ungab said Ungab added that the sin tax proposals and the rationalization of fiscal incentives were the two tax measures agreed upon in the Legislative-Executive Development Advisory Council (LEDAC). The rationalization of fiscal incentives bill was already approved on third reading by the House and is now in Senate, he said. Last December, Budget Secretary Florencio Abad said the Aquino administration will work to pass by June 2012 two key tax measures that are crucial to improving the governments fragile fiscal position namely the rationalization of fiscal incentives and sin taxes. Abad said revenues to be raised from the passage of the measures would fund the governments social services projects such as access to quality health care. We can pass them with the cooperation of the legislature, he said. (30) rbb