27.5 C
Friday, April 10, 2020
Home Business Compromise sin-tax bill eyed

Compromise sin-tax bill eyed


THE position of the Department of Finance on the proposed excise tax hike on alcohol, cigarette and tobacco products is still evolving, an official said on Wednesday.

Finance Undersecretary Eric O. Recto told reporters that the department is drafting a new proposal which may be presented to the Senate on Thursday

“We want to be careful and not come up with a new measure that would boomerang on us when it’s implemented and result in a deterioration rather than an improvement in revenue collection,” he said.

Imposing a high tax rate might cause consumers to shift to lower-priced products, which could result in a lower tax take for the government, the finance official said.

“Brand loyalty only goes as far as purchasing power,” he said.

The finance department initially proposed that the tax rates on the so-called sin products be indexed using cumulative inflation of 30.1 percent, representing cumulative inflation form 1997 to 2003, but netting out the 12 percent increase in tax rates in 2000.

But the DOF decided to cut the proposed rate increase to 20 percent following consultations with economic managers.

Last month, the House of Representatives approved House Bill 3174, which would raise excise taxes by 20 percent in 2005, 3 percent in 2006, and another 3 percent in 2007.

Armie Margaret Lee

‘Libingan’ burial for fallen frontliners: Lawmaker

A party-list representative has sought for state honors and burial at the Libingan ng mga Bayani (Heroes Cemetery) for Coronavirus disease 2019 frontliners who...

Lawmaker appeals Caraga coronavirus testing facility

A lawmaker is pushing for the establishment of a coronavirus disease (Covid-19) testing facility in the Caraga Region to help assess and address the...

Taiwan demands apology from WHO chief over virus ‘slander’

Taiwan demanded an apology from the World Health Organization (WHO) chief on Thursday after he accused the island's government of leading personal attacks against...

Young army officer dies of suspected Covid symptoms

A Junior army officer has died after experiencing symptoms of the coronavirus disease (Covid-19), with his test results yet to be confirmed. Brig. Gen. Edgard...

As outbreaks flatten in places, Japan, India see more cases

NEW YORK: Coronavirus infections are spiking in Japan and creating hot spots in India's congested cities just as the US and some of the...

Today's Front Page