Metro Manila (CNN Philippines, August 7) — A lawmaker says higher taxes on alcoholic beverages may be approved by a House committee by Tuesday next week.
Speaking at the Kapihan sa Manila Bay forum Wednesday, Rep. Joey Salceda said, “Ang isang bill na nag-third reading na [A bill that has gone through the third reading] is considered reported out, by approval of a majority of a core of the committee. In short, please expect that the alcohol tax will be approved on Tuesday at the first meeting.”
The Finance department has proposed that an additional ₱60 excise tax should be imposed on every pack of cigarettes and an additional ₱40 excise tax should be imposed on every liter of alcohol.
If enacted, it will be the second time the government raises taxes on tobacco and alcohol products since the Sin Tax Law took effect six years ago.
The Department of Finance (DOF) wants the Senate to approve higher taxes on alcoholic drinks to raise more funding.
Salceda said the higher taxes would mean an increase in prices for consumers, but that it would be minimal.
“Ang inflation po niya is .01, so kung ang inflation mo ngayon ay 2.4, magiging 2.41 siya,” he said.
[Translation: The inflation is .01, so if the current inflation is 2.4, it will become 2.41.]
Meanwhile, the DOF said increasing taxes on “sin” products will cut down the number of Filipinos who drink alcohol and smoke.
Health Undersecretary Rolando Domingo said higher sin taxes will also cut DOH’s spending for the treatment of patients with illnesses caused by tobacco and alcohol.
