Liquor tax hike may be included in tobacco excise tax bill

MANILA, Philippines – Lawmakers may include the proposed excise tax increase on alcoholic beverages as an amendment when they tackle Senate Bill 2233 which seeks to impose higher excise tax on tobacco products, a finance official said Wednesday.

Department of Finance (DOF) Undersecretary Karl Chua on Wednesday said this prerogative is possible as Congress made a last-ditch effort to get the measure passed before it adjourns next week.

This came after President Rodrigo Duterte certified as urgent the bill seeking a staggering increase in the cigarette excise tax from 2020 to 2023.

READ:  Duterte certifies as urgent bill on higher tobacco excise tax

“Isa sa option ay sa plenary or sa bicam isama nila as amendment (yung alcohol tax increase). Pwede naman po ‘iyan. Nagawa na nila iya sa  ibang batas before,” Chua told reporters during the Kapihan sa Manila Bay forum in Malate, Manila.

An urgent bill means the Senate can vote on the measure on second and third readings immediately, doing away with the three-day rule in between plenary approvals.

Chua noted that the higher excise on alcohol products will net P70 billion in the next five years.

The additional revenue from the tobacco tax hike is supposed to fund the Universal Health Care Program, provided under the law that Duterte signed last February.

Based on DOF data, P62 billion will be needed for the implementation of the UHC in 2020, P73 billion in 2021, P85 billion in 2022, P96 billion in 2023 and P110 billion in 2024.

The Senate and the House of Representatives have roughly three session days left before the end of the 17th Congress.

The DOF and the Department of Health are strongly lobbying for the Senate to pass its version of a bill that will further raise the “sin” tax on cigarettes and other tobacco products. (Editor: Gilbert S. Gaviola)

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