Coalition hails decision to halt discussions on lowering tobacco taxes

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The Sin Tax Coalition has thanked the House leadership and the chairman of the Ways and Means committee, Albay Rep. Joey Salceda, on their decision to cancel further deliberations on House Bill 11279, 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.

While raising funds for the implementation of the Universal Health Care Law, HB11279, titled An Act Amending Sections 144, 145, and 147 of the National Internal revenue code, was filed on Jan. 14, 2024.

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 neophytes 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 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 said.

"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."

The group also asked "the House, especially the sponsors of HB 11286 or the Anti-Illicit Tobacco Trade Bill, which civil society has been involved in crafting and pushing the said bill, to resist any attempt by the tobacco industry to insert amendments in the measure that will lower tax rates by weakening inflation indexation,"

"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, the Speaker, has opted to take the side of health in this particular episode."

The Sin Tax Coalition is also calling 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 said.