CANDON CITY—To a leader of tobacco farmers in northern Luzon, Senator Ralph Recto’s version of the tax measure on cigarettes and alcoholic beverages is acceptable because it will benefit tobacco growers in Ilocos Sur and other tobacco-growing provinces.
Ernesto Calindas, president of the National Federation of Tobacco Growers and Cooperatives Inc., said his group was supporting Recto’s proposal of a lower revised tax rate on tobacco products.
But Recto, chairman of the Senate ways and means committee, withdrew the committee report on the sin tax bill on Monday following heavy criticisms, especially from finance and health officials who said his version of the bill slashed the projected revenue that would be collected from the tax measure.
He presented the Senate with what he described as a “reasonable, realistic and responsible” version of a reformed sin tax measure.
Under Recto’s report, the measure would raise only P15 billion in additional tax revenues, way below the government’s projection of P60 billion.
Calindas said Recto’s proposal was acceptable because this would not impact much on the selling price of tobacco leaves and disrupt their livelihood.
Ilocos Sur produces at least 40 percent of the Virginia tobacco supply in the country.
“That’s what we wanted. We just need to be assured that we would not be shortchanged because it would affect our families,” said Calindas.
Former Deputy Speaker Eric Singson, who represented Ilocos Sur’s second district, said he was proposing a compromise version, based on the measure’s House version, to raise P30 billion.
Singson, also a former senior vice chairman of the House ways and means committee, wanted to collect P15 billion each from the sale of cigarettes and liquor.
“It will ensure that the government will attain its objective in raising taxes for its health-care program,” he said.
He said cigarette and tobacco products should not carry the burden of the tax increase because tobacco growers, most of them based in northern Luzon, would suffer.—Leoncio Balbin Jr.