Burden of proof rests on those opposing higher sin tax – Pia Cayetano
INQUIRER FILE PHOTO
MANILA, Philippines — As the Senate ways and means committee is expected to complete its report on the proposed increased tax on alcoholic drinks and e-cigarettes, its chairman said the burden of proof now falls on the shoulder of those opposed to an increase in sin tax.
Speaking with reporters after her panel’s hearing on the proposed sin tax increase on Thursday, Senator Pia Cayetano maintained her support for the vision of the administration.
“I support the vision of this administration…to see it become a reality that we become an upper-middle income country” she said.
“So we need the taxes to improve health care and all the other services we want to provide. I see that vision,” she added.
Cayetano said she would be “as objective as humanly possible” in coming up with a committee report but noted that she is a “very passionate healthcare advocate.”
“So my position is, the burden of proof is with those who do not want sin taxes or who do not want an increase in sin tax. The burden of proof is on them,” she said.
“They were pointing out that in the industry, that there’s a decline in the consumption. For me, then that should be considered as a positive thing as far as the health sector is concerned,” she added. “Because we have to admit that we really want less people drinking, especially the young ones.”
According to the Department of Finance (DOF), the proposed higher excise tax on alcoholic beverages and e-cigarettes is expected to collect P34.03 billion in 2020 should it be approved and implemented by January next year.
The DOF and the Department of Health (DOH) earlier proposed an increase in the excise tax on alcohol and tobacco products to help fund the Universal Healthcare Act.
Cayetano, chair of the ways and means committee, said Thursday’s hearing served as an opportunity to listen to all the sides of all the stakeholders.
“Within the industry, there were some comparisons on the taxation effect on their products. So yung mga nagma-manufacture ng distilled products, pino-point out nila na lugi daw sila sa taxation ng wine. And ako naman, we took note of that,” she said.
“Sabi ko nga sa DOF, we should all have an open mind together to see how we can address these multiple concerns, yung economic reforms, increased taxation, but also the health measures,” she added.
Cayetano further underscored the importance of finding the balance between providing an effective tax measure while taking into consideration the country’s health sector.
“They were pointing out that in the industry…there’s a decline in the consumption. For me, then that should be considered as a positive thing as far as the health sector is concerned. Because we have to admit that we really want less people drinking, especially the young ones,” she said.
The senator mentioned that she is currently discussing with the DOF the government’s target tax revenue.
The senator, meanwhile, noted that the committee report’s target completion is within the month of September.
“I was targeting around the second week of September to come up with my committee report,” she said.
“I do mean it when I said to the industry that we have to have an open mind and look at all their concerns. So if I need to give DOF a little extra time to make their presentation, and I even offered that we can have a technical working group where kami yung mediator, we can do that,” she further said.
