Finance Secretary Ralph Recto said the Department of Finance (DOF) is willing to listen to all stakeholders amid congressional calls for a moratorium on the excise tax for tobacco products.
“We’re open to listening to both the House and the Senate, I’ve seen the bill. It is not a DOF measure. This is initiated by Congress. And then we’re waiting also for all the comments, and listen to all stakeholders, including the health advocates,” Recto told reporters at the DOF office in Manila last Thursday.
In a statement yesterday by multi-sectoral non-governmental group Southeast Asia Tobacco Control Alliance, public health groups denounced House Bill (HB) 11279 when it was filed in Congress on Tuesday, protesting that the bill undermines the Sin Tax Reform Law.
Under the law, tobacco taxes are set to increase by five percent annually. HB 11279 proposes to stop the tax increase in 2026 and to replace the five percent annual increase with a six percent increase every two years starting in 2027.
“We don’t know the final details, it’s undergoing consultation process, we’re willing to listen to all stakeholders. But we have an open mind,” Recto said.
“We’re willing to listen because excise taxes on tobacco is lowered by roughly P50 billion. We want to increase our revenues there,” he added.
In a separate statement, the Sin Tax Coalition likewise slammed Congress for “railroading” the proposal to lower tobacco taxes.
“House Bill No. 11279 is an insult to public health. The bill’s only beneficiary is the tobacco industry, ” said Antonio Dans, convenor of the Sin Tax Coalition.