Singson backs excise tax measure

MANILA, Philippines - Ilocos Sur Gov. Luis “Chavit” Singson yesterday pushed unexpectedly for the passage of House Bill No. 5727 or the sin tax reform bill for tobacco and alcohol as he assured tobacco farmers and legislators that the measure “will not kill tobacco farming.”

In a press conference at the Department of Health (DOH), Singson said that contrary to the argument raised by those opposing the bill, the measure will generate more income for tobacco farmers.

Singson noted it is the cigarette companies that benefit more from the current taxation scheme for tobacco which is ironically provided under Republic Act No. 7171 that he authored.

He added that he decided to support House Bill No. 5727 afterrealizing that tobacco farmers are at the mercy of cigarette companies which are dictating prices of tobacco products that they bought from farmers.

“Every year, the farmers are appealing to me to increase their prices. I begged the manufacturers who are controlling the price (but nothing happened). I think it is too much already,” claimed Singson who is also the national chairman of the League of Provinces of the Philippines (LPP) which also expressed its support to the bill yesterday.

Singson said he was also alarmed when two giant tobacco companies merged because this means they they would “monopolize” the industry to the detriment of the farmers and small companies.

He committed to help explain to congressmen and tobacco farmers the benefits that can be derived from HB No. 5727

“Tobacco farming is here to stay. Proof of that is when the global campaign against smoking was launched years ago, we prepared in our province. I thought that this was a sundown industry. To my surprise, the demand kept on increasing.  We are no longer worried that this industry will die,” he added.

According to LPP national president and Oriental Mindoro Governor Alfonso Umali, governors support HB No. 5727 because it would boost the universal healthcare.

“The LPP supports this landmark legislative measure which will generate revenues to finance the public-private partnership projects, prevent smoking related expenditures and save young and poor countrymen from lifestyle diseases,” Umali maintained.

Bureau of Internal Revenue Commissioner Kim Henares said with the proposed bill, all tobacco companies would be “taxed in similar passion.”