SENATE President Juan Ponce Enrile on Thursday disclosed that there are plans to further raise the tax rate to be imposed on cigarettes in order to ease alcohol taxes during the bicameral conference on the proposed sin tax reform bill.

The Senate, in its version of the sin tax reform bill, has projected a P40-billion revenue on the first year of its implementation, wherein 60 percent will come from tobacco products, while 40 percent will come from alcohol products.

However, Enrile said that he received information that some members of the bicameral committee plan to lower the tax burden for alcohol products from to P16 billion to P11 billion and add the balance of P5 billion to tobacco tax, raising it to P29 billion.

 “I hope they won’t do it because our tobacco farmers will suffer,” said Enrile, who believes that the agreed 60-40 percent burden sharing between tobacco and alcohol should be maintained in the bicameral conference.

“On the burden sharing, they have to maintain that 60-40 ratio or reach a reasonable version that will not overburden either side,” he added.

Enrile made it clear that he is not defending the interest of tobacco companies, saying that he wants to protect the welfare of tobacco farmers and workers who are mostly from northern Luzon or the Ilocos region.

“Who will absorb the workers if the cigarette companies will be forced to close down?” he asked.

The Senate chief also called on Finance Secretary Cesar Purisima and Internal Revenue Commissioner Kim Henares to look into the proliferation of imported cigarettes in Manila.

He showed members of the media a cigarette believed to be made in China, which was given to him by a friend.

According to Enrile, the pack of cigarette was bought in Divisoria, Manila for only P20.
Meanwhile, some two thousand protesters marched to Mendiola Bridge to ask President Benigno Aquino 3rd to veto the sin tax bill.

The rallyists, led by members of the People’s Coalition Against Regressive Taxation (Pcart), pledged to support all the candidates who will be endorsed by Aquino, if the latter vetoes the bill.

“The House of Representatives has forsaken us, the Senate played deaf on us, it is now up to the President as our last chance to protect our jobs and livelihoods. As the highest official of the land, he has that exclusive authority to turn down the dreaded sin tax bill before it shatters the aspirations of our families,” said Edwin Guarin, a Pcart leader.

“For as long as [President Aquino] unburdens us with the new tax measure, we have no problems supporting and even campaigning for the whole Liberal Party slate, even those with tainted track records,” he added.

But the urban poor leader also said that their offer “works two ways.”

“If he continues to disappoint us, then his candidates, most especially his favorites, may suffer in the coming elections.”

Pcart has consistently opposed the sin tax bill because it believes that the enactment of the said bill will cause massive lay-offs of workers employed in the tobacco industry and a major decrease in revenue for the ambulant vendors and sari-sari store owners.

With a report from Jing Villamente