Angara proposes P30B to P40B additional revenues from sin tax

By Matikas Santos

INQUIRER.net

3:59 pm | Monday, November 5th, 2012

Senator Edgardo J. Angara. FILE PHOTO

MANILA, Philippines – Senator Edgardo Angara believes a P30 billion to P40 billion “sweet spot” for the Sin Tax Reform Bill will satisfy all sectors involved in the issue.

“Between 30 and 40 [billion],” Angara told reporters in an interview Monday. “That will satisfy the health and revenue expectation and at the same time not destroy the livelihood,” he added.

Senator Ralph Recto had previously proposed P15 billion additional revenues from the sin tax bill. The Bureau of Internal Revenue (BIR) and Department of Health (DOH) said they felt betrayed with the proposal that was way below their P60-billion target.

Recto said that he found the P60-billion target unlikely to be achieved by the BIR and that he aimed for an “equilibrium” with the P15 billion.

Angara, echoed Recto’s view, and said he found the P60-billion target “unrealistic.”

“That is more than the combined profit of the industry, in effect destroying the industry by overtaxing them,” Angara said.

He said that Recto’s version of the bill will be their starting point when they take up the issue in plenary.

When asked about a timetable for the measure to be passed, Angara said that it will have to be before the budget is finished.

Angara also said they will be careful in taxing the tobacco and liquor products that are foreign brands because it will go against the World Trade Organization.

Senator Franklin Drilon, in a separate interview, said that the revenues from the Sin Tax Reform Bill will fill a gap in the budget of the DOH.

Drilon said that the DOH needs a budget of P77 billion but currently only has P54 billion allocated. The additional revenues from sin taxes will fill that gap, Drilon said.

Follow Us

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=91214

Tags: Business , Edgardo Angara , News , Senate , sin tax

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

seo tools