Malacañang’s version of the sin tax reform proposal has been filed through House Bill 5727, authored by Rep. Joseph Emilio Abaya (1st District, Cavite), which seeks to change the current multi-rate specific structure of the excise tax on tobacco and alcohol products by adopting a unitary rate, a press release from Congress said.
The bill had already been referred to the House Committee on Ways and Means chaired by Rep. Isidro Ungab (Davao City, 3rd District) which is set to discuss it along with the substitute bill for 10 other sin tax reform bills, the press release said.
Abaya said HB 5727 was filed, not only to generate more revenues but also for a major overhaul to make the excise tax structure on tobacco and alcohol products simple, fair and responsive to the objectives of the government.
Abaya, Chairperson of the Committee on Appropriations, cited the existing revenue base of the government is limited in its capacity to provide substantial revenues to meet the growing pressure on government financial resources.
The bill proposes a three-year transition period in unifying the tax rates on cigarettes and distilled spirits, with the tax structure for fermented liquor will be immediately unified on the first year of the reform.
Abaya said the proposal is expected to yield additional revenues of P60 billion for the government.*