Lawmaker says sin tax will not benefit tobacco farmers

A  FARMER lawmaker said the sin tax bill approved on third reading by Congress will not benefit local tobacco producers.

“In the name of providing more funds for the universal health coverage program, the Aquino government wants to pass another regressive tax measure that will further burden local tobacco farmers and consumers alike,”  Anakpawis Partylist Rep. Rafael V. Mariano said.

According to the government, the sin tax bill is in line with the Philippine government’s commitment to the World Health Organization’s Framework Convention on Tobacco Control (FCTC), a global treaty which aims to cut tobacco use.

The sin tax seeks to impose uniform taxes on cigarettes and liquor, removing the lower tax rates enjoyed by established brands and low-priced products. The sin tax bill is expected to bring additional P60 billion in annual revenues, according to estimates by the Department of Finance.

“The Aquino government’s main concern with the sin tax is to raise more revenues and not about health-related issues brought about by cigarette and alcohol consumption,” Mariano said.

“This foreign-dictated revenue-raising measure will not break the monopoly of local cigarette and alcohol companies nor dent their profits because the additional taxes will be passed on to end-consumers,” said Mariano who stressed that tobacco farmers have yet to take advantage from the tobacco excise tax collection as mandated by R.A. 7171, supposedly aimed at developing the tobacco industry.

He said “the government has not provided a comprehensive program for the support services, subsidy and assistance to tobacco farmers.”

Mariano said since 2011, floor prices of tobacco increased only by 9 percent compared to the 25 percent increase in the cost of production particularly the rising cost of fertilizer, pesticide and petroleum shouldered by tobacco farmers. Tobacco farmers in Virginia-tobacco producing provinces are demanding for a support price of P128 per kilo on all grades of tobacco.

“Tobacco farmers will not benefit from the increase of retail prices of cigarettes increase due to sin tax,” said the solon.

“The sin tax, like the Value Added Tax (VAT) and other regressive taxes, will not have a trickle down effect on the public,” the solon said.

According to the government, the sin tax bill is in line with the Philippine government’s commitment to the World Health Organization’s Framework Convention on Tobacco Control (FCTC), a global treaty which aims to cut tobacco use.

The sin tax seeks to impose uniform taxes on cigarettes and liquor, removing the lower tax rates enjoyed by established brands and low-priced products. The sin tax bill is expected to bring additional P60 billion in annual revenues, according to estimates by the Department of Finance.

“The Aquino government’s main concern with the sin tax is to raise more revenues and not about health-related issues brought about by cigarette and alcohol consumption.”

“This foreign-dictated revenue-raising measure will not break the monopoly of local cigarette and alcohol companies nor dent their profits because the additional taxes will be passed on to end-consumers,” said Mariano who stressed that tobacco farmers have yet to take advantage from the tobacco excise tax collection as mandated by R.A. 7171, supposedly aimed at developing the tobacco industry. “The government has not provided a comprehensive program for the support services, subsidy and assistance to tobacco farmers.”

Mariano said since 2011, floor prices of tobacco increased only by 9 percent compared to the 25 percent increase in the cost of production particularly the rising cost of fertilizer, pesticide and petroleum shouldered by tobacco farmers. Tobacco farmers in Virginia-tobacco producing provinces are demanding for a support price of P128 per kilo on all grades of tobacco.

“Tobacco farmers will not benefit from the increase of retail prices of cigarettes increase due to sin tax,” he said.

“The sin tax, like the Value Added Tax (VAT) and other regressive taxes, will not have a trickle down effect on the public,” the solon said.

loading...

About accounting

You must be logged in to post a comment Login

Leave a Reply