Finance, Health, Tax chiefs push for original sin tax measure

The team of Finance Secretary Cesar Purisima, Health Secretary Enrique Ona and Bureau of Internal Revenue Commissioner Kim Henares met with legislators Wednesday to push for the original administration-backed sin tax measure, which would generate an estimated P60 billion in revenues. The version of the sin tax bill that was approved by the House of Representatives in June is expected to raise P31.35 billion in revenues in its first year. Last week, Sen Ralph Recto, as Senate ways and means committee chairman, recommended in his committee report another version of the measure that would raise P15 billion to P20 billion in revenues. Recto later resigned as head of the committee after drawing criticism for what has been called a “watered down” version of the bill. He was replaced by Sen. Franklin Drilon. Saying that he would make sure government would get its P60 billion in revenues, Drilon said that Recto’s version could be used as basis for the deliberations on the plenary, a suggestion that Recto objected to. Will settle for P40 billion Purisima said Wednesday that though the government is asking for the measure that would generate P60 billion in revenues, it would settle for P40 billion instead. “We will stick to the P60 billion but what we want is not what we always get. P40 billion is a minimum. It is a number that will allow us to attain our objectives of financing health care and to discourage sin products,” the Finance chief said in a press conference. He added that the team is hoping the measure will be passed before the end of the year. Henares said P60 billion would allow the government to attain its objectives faster. “We will reiterate more importantly the health aspect of the sin tax bill,” she said. The government has earmarked the sin tax revenues for its national health program. No need for name-calling Purisima also dismissed Recto’s insinuations of a “Purisima-San Miguel” alliance and that he is favoring alcohol companies such as San Miguel. “We don’t support name-calling. This is not a productive way to discuss an important issue,” he said. — BM, GMA News