Senate oks sin tax bill
THE Philippine Senate passed on Tuesday night in the third and final reading a tax measure on sin products aimed to collect P40 billion in additional excise tax with 60-40 burden sharing between tobacco and alcohol.
Voting 15 in favor, 2 negative votes, zero abstention, Senate bill No. 3299 or Sin Tax bill will be submitted to a bicameral conference committee on Wednesday, according to Senator Franklin Drilon.
Those who voted in favor of the measure are Senate President Juan Ponce Enrile, Senate President Pro-Tempore Jinggoy Estrada, Senate Majority Leader Vicente Sotto III, and Senators Pia Cayetano, Drilon, Loren Legarda, Ferdinand Marcos, Aquilino Pimentel III, Teofisto Guingona III, Gregorio Honasan, Ping Lacson, Ralph Recto, Lito Lapid, Ramon Revilla and Manny Villar.
Senators Joker Arroyo and Francis Escudero opposed the measure. Senators Miriam Defensor-Santiago, Alan Peter Cayetano and Sergio Osmena II left the session before the voting. However, Senator Edgardo Angara and Francis Pangilinan was absent and Sen. Antonio Trillanes IV was in official mission abroad.
Drilon said that the Senate has maintained the 60-40 burden sharing between tobacco and alcohol with initial P40 billion in projected revenues in 2013.
The incremental excise tax to be collected will gradually increase in succeeding years: P45.7 billion in 2014; P52.3 billion in 2015, P57.7 billion in 2016 and P64.4 billion in 2017.
Those on which excise tax of less than P7.56 collected in 2012, effective January 1, 2013, the excise tax will be P12 per pack; P15 per pack in January 1, 2014; P18 per pack in January 1, 2015; P21 per pack in January 1, 2016; and :P26 per pack in 2017.
Those on which an excise tax of P7.56 but less than P12 collected in 2012, effective January 1, 2013, P16 per pack; P18 per pack in 20124; P22 per pack in 2015; P24 per pack in 2016 and P26 in 2017.
Those on which an excise tax of P12 or more collected in 2012, the excise tax will P20 per pack in 2013; P21 per pack in 2014; P22 per pack in 2015; P24 per pack in 2016 and P26 per pack in 2017.
With the unitary tax of P26 per pack in 2017, there would be an increase of 4% every year starting in 2018. Meaning every year, the incremental excise tax on all sin products will increase by 4%, Drilon said.