On Thursday, the Sin Tax Coalition called on Senate Ways and Means Chair Sherwin Gatchalian to stand
by his decision to reject the tobacco industry’s proposed reduction of tobacco excise taxes.
“While we are pleased that Senator Gatchalian stated during Wednesday’s Ways and Means Committee
hearing that he will not recommend a policy that will reduce tobacco excise tax rates in the guise of a
‘moratorium,’ we are likewise disturbed over his equivocations,” said Dr. Maricar Limpin, former President
of the Philippine College of Physicians (PCP) and a convenor of the Sin Tax Coalition.
Senator Gatchalian concluded the Ways and Means Committee hearing by making recommendations to
curb illicit trade, including involving local government units (LGUs) in interagency collaboration and
upgrading track-and-trace systems for tobacco and e-cigarettes.
Senator Gatchalian did not include in his recommendations the proposal made by the tobacco industry to
suspend the yearly 5% increase in tobacco excise tax rates. “Based on the evidence and the data that we
have collected, we have not seen any connection between the increase in [smoking] prevalence and illicit
trade,” Senator Gatchalian said. “Without that evidence, we’re not inclined to look at that proposal.”
Dr. Limpin emphasized that the coalition took issue with Senator Gatchalian’s statement during a previous
Ways and Means Committee hearing on January 9 ‘that enforcement is not enough’ and that price
mechanisms can solve the problem of declining revenues.
“Enforcement is the key issue to address to mitigate illicit trade. To suggest that enforcement is not
enough is to signal an accommodation of the tobacco lobby to lower taxes. We also reiterate to the
tobacco industry that the bill is not a moratorium, it is plain and simple destroying the provision on
indexation and thus will lower taxes. It is anti-health, anti-revenue and pro-industry,” Dr. Limpin concluded.
The group of health advocates also urged Finance Secretary Recto to fulfill his mandate of efficiently
managing the government’s financial resources by rejecting the proposal to lower tobacco taxes. The
proposal is currently lodged in the House through House Bill 11279 filed by Representative Kristine
Singson-Meehan and House Bill 11288 filed by Representative Rufus Rodriguez.
“Secretary Recto, who was called Recto-Morris during his time as Senator for forwarding the tobacco
industry’s proposals, should expect full backlash from various sectors, including the medical community,
should he once again align with the industry and support this disgrace of a bill,” Dr. Limpin concluded.#
