Duterte vetoes sin tax bill provision making BIR 'powerless' vs illicit tobacco products | Inquirer News

Duterte vetoes sin tax bill provision making BIR ‘powerless’ vs illicit tobacco products

/ 03:13 PM January 23, 2020

MANILA, Philippines — President Rodrigo Duterte has vetoed a provision in the recently-signed sin tax bill, requiring authorities to secure court orders before conducting investigations or raids against suspected entities that distribute illicit alcohol and e-cigarette products.

Duterte signed Wednesday Republic Act 11467, which imposes additional excise taxes on alcoholic beverages and e-cigarettes starting January 2020.

However, Duterte used his line veto power against Section 5 of the ratified sin tax bill, his spokesman Salvador Panelo confirmed in a Palace press briefing.

Article continues after this advertisement

In his message to Congress, Duterte said he vetoed Section 5 as it “effectively curtails the power of the State to collect taxes, and renders powerless the BIR (Bureau of Internal Revenue) to effectively implement enforcement mechanisms against illicit tobacco products.”

The President likewise pointed out that such restriction “does not exist with respect to any other taxable article.”

Article continues after this advertisement

The veto was reportedly a recommendation of the Department of Finance, which flagged the provision as “unlawful.”

Aside from imposing additional sin taxes, the measure also includes a provision exempting medicines for heart disease, diabetes, and high cholesterol from value-added tax (VAT) starting January 2020.

Medicines for mental health, cancer, tuberculosis, and kidney diseases will also be VAT-free starting January 2023.

Edited by KGA
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: Congress, E-cigarette, law, Local news, Malacañang, Nation, national news, News, Philippine news updates, Rodrigo Duterte, Senate, Sin tax, sin tax bill, Tax, Taxation, Tobacco, VAT

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.