Pacquiao dismayed over passage of low tobacco tax bill

FILE: “Above all, it involves public health issue. We can compromise government revenue but not our people’s health. We can generate revenue from other sources without compromising public health. Cigarette is just like shabu. It’s addictive, it’s a poison,” Pacquiao added. (Photo: Manny Pacquiao/Facebook)

Senator Manny Pacquiao expressed disappointment over the passage of the low tobacco tax bill by the bicameral conference committee, saying protecting public health against the danger of cigarette smoking is more important than money.

Earlier last week, the bicameral panel of both houses passed the final version of the Tax Reform for Acceleration and Inclusion (TRAIN) bill that seeks to trim down the tax rate on low-income earners but impose higher levies on fuel, cars, coal, tobacco, and mining, among others.

The TRAIN bill, once signed into a law, is expected to generate some P130 billion revenues for the national government.

“We agreed at the Senate to discuss my proposed Tobacco tax bill when our session resumes in January. So, I was really dismayed by the bicam passage of the tobacco tax measure without first waiting for the Senate’s approved version,” Pacquiao said.

“Above all, it involves public health issue. We can compromise government revenue but not our people’s health. We can generate revenue from other sources without compromising public health. Cigarette is just like shabu. It’s addictive, it’s a poison,” Pacquiao added.

The boxer-turned-politician said he was surprised by the decision of the panel to adopt a lower tax on tobacco products.

The bicameral committee decided to approve the tobacco tax bill despite the Senate has yet to pass its own version of the bill.

Under RA 10351 or the Sin Tax Reform Act of 2012, the tax rate for tobacco products next year would be P31.20.

If TRAIN is signed into law, this would increase to P32.50 for the first six months of 2018.

It would then increase to P35 from July 1, 2018 to December 31, 2019.

A tax of P37.50 would then be imposed from 2020 to 2021; P40 by P2022 to P2023; and a 4% annual increase after that.

Pacquiao filed Senate Bill 1599 last Oct. 3, pushing to increase the current tobacco tax rate of PhP30 pesos per pack to PhP60 pesos in 2018 and nine percent per year thereafter.

The said measure, once enacted into law, will prevent 200,000 new smokers next year and further reduce the number of smokers by one million by 2022, mostly from the poor and young populations.

Senator JV Ejercito also filed Senate Bill 1605 which seeks to impose a much higher tax on cigarettes – from PhP 30 to PhP 90.00 pesos in 2018 – followed also by nine percent increase per year after the first year.

The Sin Tax Reform Act was passed primarily to curb cigarette and alcohol addiction and to raise government funds for the implementation of Universal Health Care (UHC).

The Senate has yet to deliberate on SB 1599 and SB 1605 when it resumes session on January 15 next year.

Pacquiao said the lawmakers virtually made cigarettes more affordable like candies by passing the low tobacco tax bill.

“Why protect the interest and greed of the tobacco companies at the expense of the youth and the Filipino people? Pacquiao asked.

He also promised to convince President Rodrigo Duterte to veto the tobacco tax provision of TRAIN.

He added that no less than Duterte, being a staunch anti-smoking advocate, assured him of support for his Senate version of the tobacco tax law.

“I will continue to fight for a higher tobacco tax and nothing can stop us from protecting our people especially children. We will never back down because this is about saving the lives of thousands of Filipinos,” Pacquiao said.