Quantcast
Latest Stories

Senators hope to keep 60:40 ratio on sin taxes

By

The bicameral conference committee on the sin tax bill on Thursday December 6, 2012. KAREN BONCOCAN/INQUIRER.net

Senators on the bicameral committee on the sin tax bill would have to consult with their colleagues in caucus before they would agree to any changes in the ratio of the tax burden to be borne by tobacco and alcohol companies.

Sen. Panfilo Lacson painted this scenario on Thursday, hours before he and other members of the Senate bicameral panel met with their counterparts from the House of Representatives to reconcile their respective versions of the sin tax bill.

The possibility of tensions rising over a likely maneuver by the House members to alter the 60:40 ratio of burden-sharing in the new taxes between the tobacco and alcohol industries, respectively, was raised by Sen. Ferdinand Marcos Jr. after the initial bicameral meeting Wednesday.

Heavier on companies

Marcos said the House panel wanted to shift the ratio so the tobacco companies would shoulder a “heavier” portion of the tax burden.

The Senate version of the sin tax measure would raise nearly P40 billion in new revenue from tobacco (P23.5 billion) and alcohol (P16 billion).

The House bill meanwhile would allow for an incremental increase of P31.3 billion, of which only P5 billion would come from alcohol.

Senate President Juan Ponce Enrile, former ways and means chair Sen. Ralph Recto and Marcos agreed to support the upper chamber’s version of the bill after the other senators vowed to observe the 60:40 tobacco-alcohol ratio of burden-sharing on sin taxes.

Told of Marcos’ statement, acting ways and means chair Sen. Franklin Drilon said the chamber’s version does not contain a specific provision on the 60:40 ratio.  This arrangement was only a “guide,” he said.

Caucus before anything

Recto said he and the other members of the Senate bicameral panel would have “no choice but to defend” the ratio since it is the Senate’s position on the sin tax issue.

Lacson said that should the House panel insist on changing the ratio, the senators would be forced to “consult the majority” in the Senate before committing to anything.

“We have to go back to our colleagues because the 60:40 ratio is what we agreed on during a caucus (before the Senate approved the sin tax bill).  It’s only proper that the rest be informed before any action is taken,” he told reporters in Filipino at the Kapihan sa Senado forum.

Lacson added that should another caucus be called in the Senate should its panel fail to agree with the House on the tax rates, the decision would be based on inputs by the chamber’s own research team, the Bureau of Internal Revenue (BIR) and the Department of Finance (DOF).

Recto earlier grumbled that while BIR and DOF officials kept quiet when the House approved its version of the sin tax bill, they raised a howl when he sponsored the first sin tax report in October.


Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Government , Legislation , Senate , sin tax bill




Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
  1. Henares on Pacquiao bashing: I did not start this
  2. ‘Mom, I love you,’ says text from student on sinking ferry
  3. ‘No real progress in PH if dynasties not dismantled’
  4. Massive infra spending set
  5. More legal woes for Cedric Lee
  6. Kim Henares needs a reprimand, says Cayetano
  7. Passengers denied chance to escape sinking South Korea ferry
  8. South Korea president shouted down by distraught parents
  9. Two Popes who would be saints
  10. Lacson’s wife loses diamond earring to thieves but recovers jewelry quickly with police arrest
  1. Kim Henares needs a reprimand, says Cayetano
  2. Suspect in Vhong Navarro mauling tries to leave PH
  3. Fr. Suarez says last Mass on Easter before returning donated land to San Miguel
  4. MH370 co-pilot made mid-flight phone call – report
  5. More legal woes for Cedric Lee
  6. I’ll follow my conscience on Estrada, says JV Ejercito
  7. ‘Wife of Jesus’ theory papyrus not fake – Harvard study
  8. Gay college instructor arrested for oral sex with student
  9. ‘No real progress in PH if dynasties not dismantled’
  10. Palace: We can’t blame increase in population on Vitangcol
  1. KL confirms Malaysian Airlines Flight MH370 ended in Indian Ocean
  2. MRT passengers pass the hat for 6-year-old Ashley
  3. Pork payoffs to newscasters Erwin Tulfo, Del Prado, others bared
  4. Rookie, lady cops lauded for quick response to MOA heist
  5. Model Helena Belmonte wished ‘to slash her wrist and hope to die’
  6. Malaysia averts another air tragedy; pilot lands troubled plane safely
  7. Revilla says he was joking; Lacson stands by his story
  8. Revilla ‘consulted’ Lacson on how he evaded arrest
  9. Police rule out foul play in Helena Belmonte’s death as boyfriend is ‘traumatized’
  10. Cudia, dismissed for lying, got 99% in conduct
Advertisement

News

  • Quezon City cops carry crosses to atone for their sins
  • Tens of thousands travel by sea this Holy Week
  • Police: Dad smothered toddler to play video game
  • 7 killed in shooting in China-Vietnam border
  • Chinese trade group to mediate shoe factory strike
  • Sports

  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Can Spurs get back at Heat? Can they survive West?
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Whoopi Goldberg debuts as marijuana columnist
  • ‘X-men’ director accused of sex assault on teen boy
  • Business

  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Oil prices mixed ahead of long Easter weekend
  • Technology

  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • DoH denies Filipino nurse no longer positive for MERS virus
  • WHO warns vs spread of MERS-Cov, urges vigilance in taking precautions
  • Last call for nominations to ’14 Presidential Awards
  • San Francisco business coalition slams proposed tax on sugary drinks
  • A ‘time-travel’ production of ‘Les Miserable’ at Stanford
  • Marketplace
    Advertisement