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Malacanang says Aquino gov't committed to rationalize sin taxes

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Malacanang expressed the Aquino administration’s commitment and unyielding efforts to rationalize the collection of sin taxes in the country to get more revenues for the government that could be used for various developmental programs.

In a press briefing in Malacanang on Monday, Presidential Spokesperson Edwin Lacierda said that the amendment to the structure of sin taxes collection is long overdue.

“The situation is this: We are rationalizing the various levels of sin taxes. At present, there are a number of levels - four levelsare that we would like to rationalize...this amendment is long overdue,” Lacierda said.

When asked on the government’s position of entering into a compromise with major stakeholders that will be affected by the rationalization, Lacierda said that the government is not considering such move pending the discussion of the amendments in the committee level.

“No, well, it’s up to the legislators to do that. We have presented our bill and so our position is very clear: we want to rationalize the sin taxes. As to whatever compromises, that is something that they will have to present… I mean, the tobacco industry would have to present their position in the debates in the committee level,” Lacierda said.

The government expects to earn P60 billion a year from the rationalization of taxes on alcohol and tobacco products. Without such a bill, the finance department estimates that government will lose P2 billion to P2.4 billion a year by 2013.

By PCOO/PIA9-ZBST




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