Some five thousand exasperated members of the anti-sin tax alliance Peoples Coalition Against Regressive Taxation (Pcart) assembled at Morayta and marched to the historic Mendiola Bridge, brandishing a giant tarpaulin streamer proclaiming “Beer is Thicker Than Water, While the Masses Suffer.”

The message was meant to expose President Benigno Aquino 3rd’s partiality for his relatives’ businesses at the expense of the masses in the sin tax debates.

The militants took a swipe at the latest provisions agreed upon by the bicameral committee conference yesterday and blamed the maneuvers on Mr. Aquino for the latest alterations in the pending tax measure.

The militants howled in disbelief after learning that the bicameral committee removed the provisions setting one billion pesos as unemployment insurance and a re-tooling livelihood program for displaced cigarette workers. The bicameral committee also removed the provision for earmarked for the benefit of the tobacco farmers.

According to Gie Relova, secretary general of the Bukluran ng Manggagawang Pilipino-National Capital Region-Rizal chapter: “The latest maneuvers by Malacañang is undoubtedly the most voracious and greediest act done since [President Aquino] came to power. Because of such manipulations, the workers and farmers have not only lost their jobs but end up empty-handed after Aquino shamelessly took every centavo meant to cushion the impacts of the recalibrated excise tax.

“It seemed unthinkable since the fall of the [Ferdinand] Marcos dictatorship that a single yet omnipotent government official could blatantly ram through all his avaricious impulses on the masses. With PNoy at the helm of power and placing his weight on the legislative branch, he has vanquished every hope and sympathy our poor countrymen have for his leadership and his ridiculous daang matuwid polemic. He has now leveled up to the ranks of Marcos, Norberto Manero, [Rep.] Gloria Macapagal-Arroyo [of Pampanga province] and other vile public figures in the history of our country” Relova added.

Pcart also took notice and insisted that the agreed provisions were clearly favorable to the business interests of Danding Cojuangco, Aquino’s favorite uncle. The militants classified the latest maneuvers of Malacañang to enact a well-crafted sin tax law according to their preferred mould as a scheme to legitimize corruption and nepotism.

The anti-sin tax alliance has consistently denounced the mafia-like operations of the government and the private corporations in the crafting of laws to conspire against the poor to squeeze from them the taxes the government drools for and the profits the corporations are dying to increase.

“For as long as a regressive taxation is in place and a morally bankrupt and exploitative system is in the place, the workers and its allies shall rise against them,” the BMP leader concluded.

Victory for health
On the other hand, Finance Secretary Cesar Purisima congratulated the members of Bicameral Conference Committee on Tuesday for signing the final version of the controversial sin tax bill after reconciling all contentious provisions, including those on annual projected revenues, burden sharing and earmarking.

“We congratulate our partners at the Bicameral Conference Committee under the steadfast leadership of the House and Senate Ways and Means Chairmen Rep. Isidro Ungab and Sen. Franklin Drilon for passing the excise tax reform bill on tobacco and alcohol, a measure certified urgent by President Aquino,” Purisima said.

“We thank as well our civil society partners that have fought for this bill unwaveringly for sixteen years. I would also like to recognize the solid work of our team from the Department of Finance and the Bureau of Internal Revenue, led by Commissioner Kim Henares and Undersecretary Jun Paul, without which this success would not have been possible,” he added.

Purisima noted that, the passage of the excise tax reform on tobacco and alcohol marks a historic victory for health and revenue reform in the Philippines for five main reasons.

“First, the measure achieves all essential reforms by correcting inequities in tax structure that have plagued the system for decades. These inequities have made sin products cheaper than they should be, to the detriment of public health objectives,” he said.

“The version that was passed removes the price classification freeze that has pegged tobacco products to 1996 prices as the basis for their tax classification; This version removes annexes that have unfairly favored brands introduced at an earlier date;

“This version provides for a unitary tax regime by 2017 for tobacco and fermented liquor, a shift from the current multi-tiered system that has allowed smokers to downshift to lower-priced products.

“This version indexes the tax rates of tobacco and alcohol by 4 percent every year so that these products do not become more affordable over time, consequently exposing the poor and the young to the harmful effects of smoking and excessive drinking.

“Second, the excise tax incidence for tobacco products jump from a measly 29 percent in 2012 to a respectable 63 percent by 2017, close to the international standard recommended by the World Health Organization and the World Bank that tobacco products be taxed excise at two-thirds their net retail price.

“Third, this version will allow a collection of P33.96 billion in incremental revenues from tobacco and alcohol for the next year and P184.31 billion over the next four years, adequately covering the financing requirements outlined by the Department of Health for the Aquino administration’s Universal Health Care program.

“Fourth, the excise regime for distilled spirits will be compliant with World Trade Organization standards by adopting a mixed system of P20 NRP per proof liter specific tax + 15 percent NRP per proof ad valorem in 2013 and 20 percent NRP per proof in 2015, and having removed raw materials from the current basis of tax classification; and Fifth and most importantly, this demonstrates the commitment and the ability of the Aquino administration to deliver difficult and significant reform. President Aquino’s agenda for good governance has succeeded in working with industry vested interests for the benefit of the country. With President Aquino’s leadership, we have been able to bring to closure this 16-year struggle for a better excise tax regime on tobacco and alcohol,” Purisima said.