DOF counting on Drilon to push sin tax measure

MANILA, Philippines - The Department of Finance is counting on Sen. Franklin Drilon to push for the original  “sin tax” measure after Sen. Ralph Recto approved a “watered-down” version.

However, sources at the Senate said the Senate panel may endorse a version that would yield revenues of only P30 billion to P40 billion.

Drilon is acting chairman of the Senate Ways and Means Committee after Recto earlier resigned as committee head. Recto, who approved a sin tax bill that would translate to only P15 billion in revenues, resigned following allegations from sin tax advocates that he received lobby money from tobacco companies.

Finance Secretary Cesar Purisima said the department is counting on Drilon to push for the original sin tax version. 

“We have no reason to doubt the pronouncements of the acting chair of the Ways and Means Committee, that the Senate will maximize the health and revenue impacts of the reform of excise taxes on tobacco and alcohol,” Purisima said.

Purisima, Health Secretary Enrique Ona and Internal Revenue Commissioner Kim Henares met with Senators in a caucus last month to push for the administration’s sin tax reform agenda.

Senate sources, however, said it is unlikely that the Senate panel would push for the P60-billion version. Instead, sources also said, the Senate committee version would be a compromise measure that would yield from P30 billion to P40 billion.

Purisima had said that the government is willing to settle for P40 billion.

He said the finance department is willing to resume discussions on the measure at the Senate’s plenary sessions in November and we will work tirelessly to pass the measure together with next year’s budget.

 “The finance department remains committed to push for reforms in fiscal policy and revenue-generating legislation,” he said.

The health department is also pushing for the approval of sin tax reforms at the Senate.