Son contradicts Chavit Singson on benefits of sin taxes

The son of Ilocos Sur Governor Luis “Chavit” Singson on Tuesday refuted claims by his father that only the manufacturers and not the farmers have benefited from tobacco production in their Northern Luzon home province.

Ilocos Sur Representative Ryan Singson told a hearing of the House ways and means committee that  Ilocos Sur became a first-class province primarily due to the additional income generated by the farmers from tobacco sold to cigarette manufacturers.

Chavit earlier told a press conference sponsored by the Department of Health in Manila that after years of opposing increased sin taxes (Chavit used to be a House representative), he had come to the conclusion that only manufacturers prospered at the expense of  farmers.

In contrast, the younger Singson warned that if the government proceeded with its proposed shift from a multitier to unitary tax system for alcohol and cigarettes, Ilocano farmers would have a difficult time finding buyers for their tobacco produce.

Critics of House Bill No. 5727 said the shift to a unitary tax would benefit high-priced, imported cigarette brands while cheap, local products would be driven out of business with an excessive tax rate.

The unitary tax would make cigarette brands currently taxed P5 per pack pay P40 to P45—an almost 1000 percent increase—in three years. This would put these local brands beyond the reach of poor consumers, critics said. Gil C. Cabacungan