The Sin Tax Coalition has thanked the Speaker Martin Romualdez, House Ways and Means Committee chairman, Albay Rep. Joey Salceda, and other House leaders on their decision to cancel further deliberations on HB11279, which they say will ‘sabotage’ the Sin Tax Reform Law by lowering tobacco tax rates.
The Sin Tax Coalition is composed of medical groups, health advocates, and civil society organizations campaigning for high taxes on products like tobacco and alcohol to discourage their consumption, and protect the health of Filipinos. The World Health Organization says tobacco kills up to half of its users.
HB11279, titled An Act Amending Sections 144, 145, and 147 of the National Internal revenue code, was filed January 14, 2024 by Ilocos Sur 2nd District Rep. Kristine Singson-Meehan. It seeks to raise funds for the Universal Health Care Law implementation, but the Coalition said it will, at best sabotage the Sin Tax Reform Law by lowering the tax rates on sin products like tobacco and alcohol.
In a recent statement, the Sin Tax Coalition said the decision to cancel further deliberations on HB11279 shows that “the House leaders, specifically Speaker Martin Romualdez and senior House officials like Rep. Salceda and Rep. Stella Quimbo, as well as House neophyte like Rep. Ray Florence Reyes, are willing to listen to health advocates and are sensitive to public opinion.”
“The voice of many sectors is loud and clear: the Singson-Meehan bill, or what we call the ‘Sin Tax Sabotage Bill,’ will lower tax rates on sin products and lead to a further decline in excise tax revenues, and increase the number of smokers and smoking-associated deaths and diseases,” the statement pointed out.
“This popular sentiment against any attempt to sabotage the Sin Tax Reform Law will affect the political landscape, including election outcomes. Again, we thank the House leadership for doing the right thing by cancelling further deliberations on bills that will undermine sin taxes,” it explained.
“The voice of many sectors is loud and clear: the Singson-Meehan bill, or what we call the ‘Sin Tax Sabotage Bill,’ will lower tax rates and lead to a further decline in excise tax revenues, and increase the number of smokers and smoking-associated diseases and deaths,” the statement said.
“We also call on the Executive to respect the decision of the House to cancel further hearings, We likewise commend the Department of Health and Secretary Ted Herbosa for asserting the primacy of health in defending the Sin Tax Reform Law,” it added.
“One of the greatest Health Secretaries we ever had, the late Quasi Romualdez, would be happy that his nephew, Speaker Martin Romualdez, has opted to take the side of health in this particular episode,” the Sin Tax Coalition statement noted.
The group also asked House members, especially the sponsors of HB 11286 or the Anti-Illicit Tobacco Trade Bill, which involved civil society groups in crafting and pushing the bill, to resist any attempt by the tobacco industry to insert amendments in the measure that will lower tax rates by weakening inflation indexation,”
“Lastly, we call on Finance Secretary Ralph Recto to be true to the mandate of the Department of Finance: protect our financial integrity and enhance our revenue collection. Do not become an agent of the tobacco industry by supporting bills that will destroy inflation indexation and lower taxes. Otherwise, your Recto-Morris image will again rear its ugly head, the statement concluded.
