House, Senate OK sin tax bill


Senate President Juan Ponce Enrile huddles with other senators and clarifies a point with BIR Secretary Kim Henares during a short break in the hearing of the repackaged sin tax bill in the Senate last Nov. 7, 2012. INQUIRER FILE PHOTO

The two chambers of Congress will ratify the reconciled version of the sin tax bill today after yesterday’s face-off between senators and representatives that centered on whether they would make good on their promise to dedicate the incremental revenue from tobacco and alcohol products to health-related government expenditures.

Sen. Franklin Drilon made the announcement after stepping out of the grueling four-hour  meeting between senators and representatives tasked to thresh out the differences between their respective versions of the measure.

Drilon, acting chairman of the Senate ways and means committee, said the reconciled version adhered more closely to the upper chamber’s version.

For 2013, the sin tax measure is expected to raise an additional P33.96 billion on top of present collections from tobacco and alcohol products.

Drilon said P23.4 billion of this amount was expected from the tobacco sector while the rest would come from revenues from alcohol products.

“The tobacco revenues are actually lower than the Senate-approved target of P23.55 billion,” he noted, recognizing some colleagues’ objection to what they believe is a skewed burden-sharing between tobacco and alcohol.

Senators approved the sin tax bill on third and final reading after agreeing on a 60:40 burden-sharing ratio between tobacco and alcohol taxes.

The reconciled version, however, contains a 69:31 ratio between the two products. In subsequent years, tobacco’s burden share would taper slowly to 64 percent in 2017, Drilon said.

During the Senate debates, Senate President Juan Ponce Enrile and Senators Ferdinand Marcos Jr. and Ralph Recto voiced concerns over the apparent favor given to alcohol producers since their burden share is significantly smaller.

Drilon said that Marcos, in particular, held back when he noted that the reconciled sin tax version would take note of the law that requires that 15 percent of all incremental revenues from sin products would go to support workers in the tobacco industry.

Meanwhile, representatives rejected an amendment introduced by Recto requiring specific uniform amounts for the repair and rehabilitation of hospitals.

Drilon said the representatives described the proposal as unrealistic since the financial needs of different hospitals would also vary.

The Philtobacco Growers Association (PTGA) said it would campaign against all reelectionist senators who voted in favor of the sin tax bill.

PTGA president Saturnino Distor said that aside from street rallies, his group would soon launch an Internet campaign ( to ensure that “anti-farmer, anti-labor” reelectionist senators would not get votes from tobacco-producing provinces and other areas affected by higher sin taxes nationwide.

The bicameral conference committee is made up of Senators Drilon, Recto, Marcos, Panfilo Lacson, Alan Peter Cayetano, Pia Cayetano, Sergio Osmena III, and the contingent from the House of Representatives: Davao City Representative Isidro Ungab, House majority leader Neptali Gonzales II, House minority leader Danilo Suarez, Iloilo Representative Janette Garin, Batanes Representative Henedina Abad, Camarines Sur (third district) Representative Luis Villafuerte, Camarines Sur (fourth district) Representative Arnulfo Fuentebella, Negros Oriental Representative Jocelyn Limkaichong and Ilocos Sur Representative Eric Singson Jr.

Also present during the deliberations were Bureau of Internal Revenue Commissioner Kim Henares, Finance Undersecretary Jeremias Paul Jr. and Health Undersecretary Eric Tayag.

 Originally posted: 3:22 pm | Monday, December 10th, 2012

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  • tata_boy

    good job guys, now, pass the FOI biII, abolish the pork barrel at ibalik ang death penalty. you will do a great service to the country.

    • yesyesyo

       There will be more corruption if you abolish the pork barrel. At least it is regularly audited by COA. If there is no budget for senators and congressmen, where will they get the fund for all the solicitations and requests for financial assistance from mayors and governors for local projects and programs. also, where will they get allocations for kasal, binyag, and libing, for inter-towns, inter-schools, etc…

      • Lila

         really? and you think COA can check these guys? you really need to go out more and smell the polluted air

      • yesyesyo

        You ought to do a little research of what is the function of COA. You ought to know that all govt agencies are regularly audited by coa.

        Puro ka dada! Halatang walang alam.

  • Gerald Abueva

    Sa wakas. Naipasa rin.

    • Guest

      That’s why, ang scenario is…bababa ang sales ng local cigarettes firms
      dahil sa sobrang taas ng ng price niya. Wala na silang kikitain.

      • EOJ

        Beg to disagree. Cigaret firms in other countries with more expensive cigars still earns income.

        By the way, despite the sin tax bill, the philippines will still have the cheapest cigars in the world.

  • yesyesyo

    Well done!!

  • Frodo44444

    In one week they remind companies of increase to wages, then take it back in taxes…que pasa?

    • LuliMacapagal

      the first year, tobacco is expected to pay an additional P23.4 billion
      in taxes, while alcohol will only pay P10.56 billion. Ang laki ng difference di

      • Guest

        Kaya nga bangungot sa mga small cigarette firms itong sin tax measure na
        ito. We blame this government for being so greed on tax.

      • Guest

        You’re right! Local tobacco companies have no choice but to close down
        or lay-off their workers.

  • Guest

    We will campaign against them on 2013 and 2016 elections. That’s the
    only way we can get back to this anti-poor, anti-workers lawmakers.

    • Guest

      Sin tax bill has been approved in the bicam and maybe ratified today in Congress. This is the start of our nightmare.

    • Guest

      It was only Enrile, Recto and Marcos who fight for the welfare of the tobacco farmers. Buti pa sila. The rest mga bayaran.

  • blainz

    One down, then RH bill, then FOI bill (I hope without the RoR).

  • Guest

    We hope these solons and the anti-tobacco advocates are prepared to find
    new jobs for our employees because we cannot. Can they do that?


    • Yul Dorotheo

      “our employees” – so you are a tobacco manufacturer? PMFTC? Mighty Corp? American Anglo? Which one?

      According to PMFTC and the Phil Tobacco Institute, there are around 7,000 workers in the tobacco manufacturing sector. That is such a huge number indeed! How many of them do you think will lose their jobs? 100? 1,000? All of them?  If they will all become jobless, does that mean that you will close down your business?

  • micashan


  • cute79

    dapat lang itaas ang tax ang di pangunahing kelangan ng mga tao like sigarilyo at alcohol lalo at di ito makakabuti sa kalusugan.dapat ibaba ang tax ng pangunahing kelangan ng mga tao tulad ng pagkain.

  • Guest

    Kaya nga sabi nila…bakit di na lang gawing patas ang buwis…dahil parehas lang namang masama ang epekto niyan sa isang tao..di ba?

    • jga94

      Parehas may bad effects but bad effects of smoking is not dose related as opposed to alcoholic drinks –this may be one of the reason.

  • ghe

    Buti naman nawala ang ‘sunset provision’. Next FOI bill naman at RH before Christmas break.

  • $38346712

    Dili buhisan ang kalan-on sa matag adlaw. Dako kaayog matabang sa katawhan kaysa buhis nga waldason lang sa mga kurakot sa gobyerno.

  • jga94

    It’s about time…it’s not the ideal taxation on such harmful products but this will do for now…

    May mga posters na nagsabi na tatandaan daw nila yung mga nagpasa nito….well mas maraming non-smokers ….silent majority…silently suffering from secondhand smoke of careless, irresponsible smokers and irresponsible drinkers….kami tatandaad namin yung mga lawmakers who tried to downgrade the bill in coming elections….

  • superpilipinas

    Naku heto nanaman tayo.

    buti nga at baka mabawas-bawasan ang mga bisyo…..

    pero ito nanaman …. nauna ang bill para sa pag-kolekta ng pera at pag-gastos ng pera.

    perro yung bill para mabantayan ang pag gastos, yang FOI bill, nahuli. at baka hindi pa maipasa.

    Anong ibig sabihin niyan? Kaninong bulsa nanaman mapupunta yan?

    Walang FOI bill, eh di walang makakaalam!

    Ganun din ang RH. Bakit nauuna? Kasi kumisyon at lobby money. Ano pa.


      COA ang taga bantay ng pag gastos. They audit all govt expenses regularly.

      I am for FOI but you are exposing your utter ignorance. You open the website of the department of budget and you will see all the allocations and fund releases of national govt., status of projects, etc. no need for FOI on that.

      PNoy is one of the most transparent if not the most transparent president ever. He has regular press conferences. media can ask him all kinds of questions. arroyo did not have regular press conferences.

      The FOI is primarily for presidents like marcos and arroyo who are corrupt, curtail press freedom and are not transparent and honest.

      Nevertheless, I have no doubt, the FOI will become a law in the hands of the incorruptible President Aquino.


    Great job!

    The incorruptible PNoy is really making a big difference.

  • kulittwit

    President Aquino is actually delivering. The economy is improving and the peace talks is progressing. We have new ombudsman and chief justice.

    Noynoying is actually working! no matter what his critics and haters say.

  • disqusted0fu

    now that this has been ok’d, all the more that the FOI bill should be passed. who knows where the P33.96 billion will really go to and be used for.

  • mabyrik

    For long years, I smoked. While I was still in the Philippines and life is good, I tried to stop that dreaded vice so many times for health motivation and for so many times, I failed. The reason is, the cigarrete is so cheap and is available everywhere. One can even grab a stick or 2 from a friend and he won’t mind.

    When I moved to US, for a while, I still had that vice. I worked and I cherished the fruit of my sweat. The smallest penny in my pocket is a treasure. And the moment came that everytime I  went to the store to buy a $6/pack of marlboro (I consume 1.5 pack a day), I can’t help but compute mentally how much I was wasting for a useless vice every month. Wow, I found out that the money i spent for cigarrete in 5 months can pay for my apartment, or pay my visa and mastercards monthly. That was the cue for me to stop smoking. Now, I feel good physically. 
    This is one tax that people, specially the non-smokers/non-drinking, welcome. 

    Next-RH Bill please.

  • Yul Dorotheo

    Marcos, Recto, and Enrile voted in favor of the sin tax bill, so PTGA (the tobacco industry front group) will campaign against them also in the coming elections?  Yes, please do!  Because the health advocates will campaign against them also.

    • Guest

      This excise tax law would effectively kill the local cigarette industry. Mabuhay ang kasibaan ng gobyernong Aquino.

    • Guest

      For reelectionist senators and congressmen who railroaded the sin tax bill: “We will campaign for your defeat in 2013”.

  • gringoloco

    We all know these people only want to kill the middle class population of the Philippines.
    This is just the start, new taxes will come soon.
    Rich and very poor only, coming soon.
    If they want to improve the health of the people, why they increased 100% the premium of the health insurance?
    From P1.200 per year to P2.400. This just happened few months ago, I think in June or July.
    Will be free for poor families once they start to collect the new taxes?
    I doubt it.

  • Fulpol

    Tobacco – Lucio Tan
    Alcohol – Danding Cojuangco

    Lucio Tan 60%… Danding 40%

    fair.. really fair..

  • Joseph

    The PTGA should smoke themselves to death.

  • Guest

    The reelectionists senators who voted for high excise tax tobacco are: Sens. Alan Peter Cayetano, Koko Pimentel, and Loren Legarda. Wag silang iboto sa 2013 elections.

    • Roronoa

      i don’t think so.

  • Roronoa

    nice senators

  • Guest

    Aside from the bonuses they will receive from Sec. Purisima, they will also be receiving extra bonus from Bloomberg and BAT. Hapi ang Pasko nila.

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