Zubiri: Senate to reconsider final approval of sin tax bill after opposition from House members

The Senate is set to reconsider Tuesday its third and final reading approval of the tobacco excise tax hike bill after some members of the House of Representatives expressed opposition on the sharing of proceeds.

“Nagkaroon ng kaunting gusot kagabi dahil umalma ang ating mga kapatid na kongresista sa norte, kung saan ang tobacco-producing provinces, on the distribution of their share dito sa Republic Act 7171,” Majority Leader Juan Miguel Zubiri said.

Under Republic Act 7171, local government units that produce Virginia-type cigarettes would receive 15% share of the total sin tax collection and allocate it for the livelihood projects and support to tobacco farmers.

At present, 90% of the 15% share goes to the towns and municipalities and 10% goes to the provinces.

Zubiri said the Department of Finance proposed to amend it to 50% to the towns and municipalities and 50% to the provinces. This amendment was adopted by the Senate.

However, lawmakers from northern Luzon opposed such amendment.

“What happened last night, sabi ni House Speaker GMA (Gloria Macapagal-Arroyo) na pinuntahan siya ng northern bloc congressmen and they threatened not to approve the sin tax measure if this is not addressed,” said Zubiri.

“We asked the last night through Secretary Carlos Dominguez and Undersecretary Karl Chua na ayusin n’yo kasi kung hindi baka i-hostage ‘yung batas,” he added.

The Senate majority leader said he believes a compromise has been reached and they will introduce it on the floor.

He said he already informed Senate President Vicente Sotto III, Minority Leader Franklin Drilon, and the members of both the majority and minority bloc that they need to reconsider the sin tax bill.

“We will open the period of amendments, i-amend namin dito ‘yung pinag-usapan ng DOF at House. Ipasa ulit namin ng second and third reading this aftermoon tapos ise-send sa House para i-adopt nila,” he said.

Once the House adopts the bill, it can be immediately sent to Malacañang for the President’s signature.

Zubiri said they can no longer afford a bicameral conference committee meeting as it will take time and the Congress is set to have its sine die adjournment Tuesday evening as Wednesday is a holiday.

On Monday evening, voting 20-0, the Senate approved the bill on second and third and final reading. 

Senate Bill 2233 proposes an increase of P45 to P60 per pack in excise tax beginning next year to 2023 and then 5% yearly hike effective January 1, 2024.

The scheduled increase would be as follows: P45 per pack increase effective Jan. 1, 2020 until Dec. 31, 2021, P50 in Jan. 2021, P55 per pack in Jan. 2022 and P60 per pack effective Jan. 1, 2023.

The Department of Finance said the measure will help fill in the P40 billion funding gap for the implementation of the Universal Health Care law. — RSJ, GMA News