The Senate’s version of the Palace-certified revenue measure seeking to reform the excise tax law and projected to bring in an estimated P30 billion additional revenues from higher liquor and cigarette taxes is seen to be passed by October, before upper chamber members get tied up in marathon deliberations on the proposed P2.007-trillion budget for 2013.
“It is our duty to pass the tax measure,” said Sen. Ralph Recto, chair of the ways and means committee, recently.
His panel, Recto said, will start review of the Malacañang-endorsed “sin tax” bill anytime soon, to enable senators to get inputs from Finance Secretary Cesar Purisima, as well as affected industry stakeholders.
Recto said his committee would strive to craft legislation that will spread the tax burden equitably on the affected sectors.
“Dapat patas ang laban para sa lahat,” Recto told reporters, adding that he’s planning to submit a committee report on the Senate version of the sin tax bill by September.
This could enable them to have plenary vote to approve the measure by October and then submit the legislation to have it signed into law before the year end by President Aquino.
But Senate President Juan Ponce Enrile earlier indicated that the sin tax bill will still undergo thorough scrutiny at the Senate hearings on the measure.
“It is going to be bloody. It will take too long,” Enrile confided to reporters.
For instance,  Enrile expressed concern over a provision in the bill in which the tax on lower class of cigarettes will increase by “about 700 percent.”
“Who will be adversely affected? Jeepney drivers, telephone operators in call centers, ordinary workers who cannot afford heavy tax,” he said.
Asked if the disparity in the new tax impositions was due to strong lobbying by affected rival stakeholders in the alcohol and tobacco industries, Enrile replied: “For sure there’s lobbying,” he said without elaborating.