Drilon given power on Senate sin tax bill

Senator Franklin Drilon

MANILA, Philippines—Senators have agreed to let Senator Franklin Drilon, acting chairman of the Senate committee on ways and means, decide on how to proceed with the sin tax reform measure in the chamber.

Drilon has expressed an inclination to retain the committee report prepared by resigned chairman, Sen. Ralph Recto, and subject it to amendments.

Finance officials have reportedly scaled down their target increase in revenue from sin taxes from P60 billion to P40 billion.

Recto’s report expects to generate P15 billion.

“The chair should have a free hand but there was an expression by many senators that it looks funny if they use the report when they need P40 billion,” Recto told the Inquirer in a phone interview.

Recto suggested that the committee under the present chairman just adopt the House version of the sin tax measure or the bill authored by Sen. Miriam Defensor-Santiago.

Santiago’s version is said to be the closest to the administration’s target of generating an additional P60 billion yearly from the increase in sin tax rates.

Told that Drilon had expressed preference for adopting his report as a starting point for amendments, Recto said: “Only because it is well-written. Some of the numbers they may disagree with but there is a structure in place.”

“He can make his own report. He can copy my report… But I’m saying if they want P40 billion, let them write a report that’s 40 and I will sign it,” Recto said.

Drilon, who is on an official trip to Canada, also said that he would consult other committee members on how to proceed despite his personal inclination.

Recto indicated that he would air his views on his position on the sin tax measure during the plenary debates. “It is my job. I’m elected as a senator not to keep quiet,” Recto said.

He maintained that the administration targets couldn’t be achieved.

He said the provisions in his committee report that provided for lower tax rates and a time period before tiers were collapsed were more realistic.

Senate President Juan Ponce Enrile also suggested that a new committee report be drawn up using the House version or the Santiago bill as templates.