Fourth and last Senate hearing on sin tax bill starts.
Senate ways and committee chair Ralph Recto presides over the hearing. Here too are Finance Sec Cesar Purisima and Health Sec Enrique Ona
Disbursement of revenues under two excise tax laws - RA 7171 and 8240 - now being discussed
BIR Comm Kim Henares says RA 7171, RA 8240 did not trickle down to tobacco farmers
BIR Comm Kim Henares says RA 7171, RA 8240 did not trickle down to tobacco farmers
Recto: Let's harmonize existing excise tax laws
Recto summarizes provisions of new sin tax bills - the one passed by House and the others filed at Senate
House passed amended bill 5727 by Cavite Rep Jun Abaya w/c seeks to raise P30-B in first yr. Original version of bill sought to raise P60-B
Bills passed at Senate carry same provisions as original House bill
Recto asks where revenues under ideal P60-B bill will go
Purisima: 85% will go to health (Philhealth and DOH). This is roughly P50-B
Recto says national budget currently allocates P12.5B for Philhealth. Ona says this covers premium payments of poorest of the poor
Recto asks whether Philhealth COO Alex Padilla if agency received allocation under natl budget. Padilla says no, not all.
Recto: we'r promising additional revenues under new bill, bt what assurance do we have they will be released?
Senators Teofisto Guingona III and Franklin Drilon join hearing
Recto asks for additional data from finance officials to be able to release the committee report 'as soon as possible'
Economist and UP Prof Winnie Monsod now at hearing
UP College of Medicine Prof Antonio Dans presents statistics on the economic burden of smoking-related diseases and deaths
Dans says P188-B economic burden an 'underestimate'
Dans: When tobacco industry increases their prices, thy become our partners. Govt revenues improve, deaths are reduced
Recto asks finance and health depts to also provide data on effect of sin tax bill on alcohol industry
Dans: price of cigarettes to go up 97% in 1st yr under santiago bill (P60B). Smoking prevalence to go down 31% due to inelastic demand.
She will talk about 'lose' arguments presented by sin industry
Sin industry should be taxed higher than other industries because it's bad for health - Monsod #SinTax
Monsod repeats an earlier presentation she made to refute sin industry's claims vs sin tax #SinTax
On keeping tobacco taxes and prices cheap, Monsod says 'it's not an act of mercy to the poor, but an act of mercy to tobacco industry.
Monsod to Recto: When u asked asked why excise taxes on alcohol under House bill is too small, you know why
Recto replies: I have an idea... It's political
Monsod: Let's take it out in the open. She says NPC had something to do with it. NPC is the political party of businessman Danding Cojuangco
Cojuangco is chair and former major shareholder of alcohol beverage maker San Miguel
Recto to Monsod: Yes, there is a lot of lobbying here
Manos Koukourakis of JTI says increasing taxes will lead to smuggling
Recto reads statement of economist Ben Diokno. Diokno backs argument smuggling will increase when taxes on tobacco are raised significantly
Carmen Herce of PMFTC tells Henares: our books are open if u want to audit. Herce denies transfer pricing allegatiobs
Henares to Herce: don't worry, we will (audit).
Senate President Juan Ponce Enrile joins the hearing
Recto: I hope when we raise taxes and say we will spend them this way, we'll keep our promise
Recto reiterates P12B budget for Philhealth under natl budget not yet released
No additional questions from other senators. Hearing adjourned.
Fourth and last Senate hearing on sin tax bill starts.