Senator JV Ejercito on Tuesday called on economic managers to consider raising taxes on tobacco products to offset the loss that may be incurred in suspending the excise tax on fuel.
“Sa akin, ngayon ay marami ang nanawagan na suspend muna ang TRAIN law lalo na ang excise taxes on petroleum. Siguro ang solusyon ko diyan para hindi naman basta lamang i-suspend para ‘yung mawawalang revenue ay kunin po natin sa tabacco tax,” Ejercito told reporters.
(For me, there are a lot of people who are calling for the suspension of the TRAIN law, especially the excise taxes on petroleum. My solution in order for us not to lose revenue is to get it from the tobacco tax.)
Some senators and labor groups have eyed the suspension of excise tax on oil to roll back the prices of basic goods and commodities.
Senators argue that oil tax could be suspended if the global price of crude oil reaches $80 a barrel.
READ: Recto: TRAIN has ‘self-executory’ provision stopping fuel excise tax hike
Ejercito said that he had already suggested the increase in tobacco products and lower oil tax during the debates on Tax Reform for Acceleration and Inclusion (TRAIN).
“[It will be hitting] two birds with one stone ‘yan; makakakuha na tayo ng much needed revenues para sa pangangailangan ng ating pamahalaan (we will get much needed revenue for the government’s needs) and, at the same time, it will now become a health measure na mabawasan na rin ‘yung talagang mga nagsisigarilyo (in which there will be less smokers),” he said. /je