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‘Sin tax’ bill sails through; foes claim railroading

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HIGHER SIN TAXES A grocer sells beer, rum and cigarettes to a customer (not shown) in Manila. Malacañang has reiterated its call for the passage of the so-called sin tax bill, saying that based on the proposed law, the government can earn P60 billion a year. AFP/JOEL NITO

MANILA, Philippines – Allies of President Benigno Aquino III were in full force at the House ways and committee hearing Wednesday to approve the proposed reforms in taxes on cigarettes and alcoholic drinks, the so-called sin taxes, that have been stymied for the past 16 years.

The decision by the Nationalist People’s Coalition (NPC) party of businessman Eduardo “Danding” Cojuangco, majority owner of market leader San Miguel Beer, to support House Bill No. 5727 and the last-minute compromise changes to the proposed sin tax reforms provided the breakthrough, House leaders said.

HB 5727 seeks to restructure the excise tax on alcohol and tobacco products, a much-needed revenue reform bill that is meant to boost the flagging collections of the Bureau of Internal Revenue.

“Although I belong to the Northern Luzon bloc which opposed the sin tax reforms because of the ill-effects on tobacco growers in our region, I had no choice but to vote for it because the NPC wanted a solid vote,” said Isabela Rep. Giorgidi Aggabao, the committee vice chair.

Committee members voted 46 to 14, with one abstention, to pass the bill shortly after finance undersecretary Jeremias Paul unveiled at the hearing the changes made to HB 5727—adopt a two-tier tax system from the original proposal of unitary tax system to replace the current four-tier system; replace proof per liter with retail price as basis for taxation; and abolish the tax advantage given to old brands.

Members of the Northern Luzon bloc and the minority denounced the “railroading” of the sin tax bill which they described as the “Luisita Express,” a reference to the sugar estate owned by the President’s family.

“This is unfair, we should be allowed to study these amendments,” said Nueva Ecija Rep. Carlos Padilla who noted that the committee has been debating the bill for the past six months.

Zambales Rep. Milagros Magsaysay said that this was no different from the “express” impeachment of Chief Justice Renato Corona which was filed, signed, verified, approved and transmitted to the Senate in less than 5 hours last December.

“We are appalled by this brazen, unabashed move to railroad the approval of the sin tax bill. We have not yet even discussed at length the considerable damage that this measure would  inflict on our economy and the livelihood of millions of Filipinos dependent on the tobacco and alcohol industries. Should we just ignore the warning and voices of concern aired by various sectors over this ill-conceived bill?” said Magsaysay.

Even a member of the administration coalition, Assistant Majority Leader Magtanggol Gunigundo, said he did not agree with the move of his peers. Gunigundo maintained that the sin tax bill would burden the local tobacco and liquor industries while benefiting imported brands with lower taxes.

Ilocos Sur Rep. Eric Singson Jr. claimed that Cavite Rep. Joseph E.A. Abaya, the author of HB 5727, had sent text messages to committee members on the eve of Tuesday’s meeting which said that the President had requested their attendance and to support and vote for the sin tax bill. Abaya did not reply to the Inquirer’s query.

Manuel Mamba, the presidential legislative liaison officer, was visibly active at the sidelines during the hearing, taking a headcount of the bill’s supporters.

Rudy Salanga, president of the Philippine Tobacco Institute, said they got a hint of the plan to railroad the bill when ways and means committee chair and Davao Rep. Isidro Ungab boldly announced last week that the sin tax would be approved “before we adjourn sine die on June 7.”

In a statement, Abaya credited Aquino’s “political will” in inspiring the passage of the bill, transcending multi-partisan interests.


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Tags: BIR , Business , revenue , sin tax

  • http://www.facebook.com/yul.dorotheo Yul Dorotheo

    Opponents of the sin tax reforms have protected vested commercial interests for too long with total disregard for the public good, even as they claim they are “protecting their constituents” or “protecting the local industry”.  The facts are clear. The current sin tax law, which these vested interests do not want to change (i.e. agree to raise taxes but only by a little amount that will continue to promote the ill health and poverty of consumers while boosting industry profits) has resulted in devastating effects on both public health and the national economy.

    Let’s see if “My Mom” (an obvious tobacco industry stooge) has something to say on this.

  • Elio Madama

    Who is going to stop “contrabando”?
    Expect a lot of new rich people, doors will be opening for smugglers.

  • Elio Madama

    Coming soon to Philippines.

    Cheapest beer in the world – ‘bia hoi’ in Vietnam (16 cents a glass)

    18 Mar, 2010  |  
    Comments (1)  |  
    Add a comment

    If
    you love draft beer and you also love a bargain then your mecca might
    be northern Vietnam. Every travel show that slips through the country
    mentions the infamous “bia hoi” that is most common in Hanoi,
    but also found in many other parts of Vietnam if you look around. In
    fact, Hanoi is definitely not the best place to try these cheap suds,
    but we’ll get to that below.
    On signs that bother to translate the words, “bia hoi” always becomes
    “fresh beer” but in reality there is an older form of the stuff that is
    called “bia tuoi” and that actually means “fresh beer.” The word “bia”
    is Vietnamese means beer, and it’s pronounced almost like an Australian
    pronounces “beer” anyway.
    What’s important to know about this stuff is that it’s made freshly
    each night, delivered around the city the following morning, and guzzled
    down by the time the bars close that night. And instead of actually
    being served in bars, it’s usually poured out of a plastic jug, or maybe
    an actual keg, at street-corner establishments all over the city.
    How much does bia hoi cost?
    If you are in Hanoi then by far the most likely place you’ll be able
    to try it is at one of the four casual places on Bia Hoi Corner in the
    heart of the Old Quarter. At those places the current price in 2010 is
    3,000 dong per 12oz glass, which translates to about 16 US cents. If you
    are very cheap and very adventurous then you might be able to find it
    for as little as 2,000 dong, but it won’t be easy and it definitely
    won’t be worth the nickel you save.
    In case you are curious, a bottled local lager beer will cost
    anywhere from about 12,000 to about 25,000 dong, depending on where you
    order it, so this 3,000-dong stuff is cheap, but not too far out of the
    normal range for this city.
    What is bia hoi like?
    Bia
    hoi is a very light lager made with no preservatives that is probably
    more similar to Bud Light than anything else you might know. Research
    tells us that the alcohol level is usually between 3% and 4% so it’s a
    bit weaker than American light beer, when bia hoi is in its pure form.
    Most tourists drink this stuff for the novelty of it rather than its
    delicious taste, and in fact, the batches tend to taste different from
    day to day, which might be at least partially explained by the fact that
    many of the bia hoi places in Hanoi literally water the stuff down in
    order to stretch the batch out a bit more.
    At most places it’s not really as cold as you might like, and some
    days it tastes like dishwater while other days it tastes like a really
    nice light beer. The service at these places – at least the ones where
    tourists go – tends to be fast, so it’s possible to get quite a few of
    these things down your gullet in a short time if that’s your goal.
    What’s in bia hoi?
    None
    of the breweries that make the stuff seem to publish their recipes, at
    least in English, but word on the street is that it’s normal lager made
    with hops and barley malt, and it also contains around 50% rice, which
    helps keep it light and clear. If rice in beer sounds weird to you then
    you might not know that Budweiser itself contains around 30% rice.
    There are no preservatives added so bia hoi is said to be pretty much
    undrinkable after 24 hours or so, as it goes flat and begins going bad
    quickly. These places know about how much they can sell each day so they
    only order that much, or even less, to be delivered each morning.
    Finding bia hoi in Hanoi
    There are several beer hall and beer garden-type places around town,
    and expats living here seem to frequent those, but honestly your best
    bet is to join the rogue’s gallery of tourists, expats, and locals at
    Bia Hoi Corner itself. It’s at the intersection of Luong Ngoc Quyen and
    Ta Hien Streets, and if you are spending more than a day in Hanoi then
    chances are very high that you’ll wander through there whether you are
    trying to or not.
    You’ll have the privilege of sitting in a tiny plastic chair while
    you drink, so in this sense it’s a truly local experience because pretty
    much every Vietnamese person eats every meal seated on one of these, if
    not the even-smaller plastic stools you see at some places.
    The sign here says 4000 dong because this is the week after Tet when prices are higher
    By far the most popular place with tourists is Bia Hoi Hai Loan,
    you’ll see it on the corner, and its address is 41 Luong Ngoc Quyen. One
    of the problems with this place is they open in the early afternoon and
    seem to run out of bia hoi only 4 or 5 hours later, so if you come
    round after 7pm or so it’s likely that they’ll tell you that they are
    out for the day. You can do what most people do and instead order a
    bottle of Tiger or Hanoi beer for 15,000 or 20,000 dong, but it takes
    some of the fun out of things.
    Map of Bia Hoi Corner

    This Hanoi bia hoi website
    does a great job mapping all these places out, so if you are looking
    for alternatives or staying in a different neighborhood, they’ve got you
    covered.
    A short video of the (madness and) scenery at Bia Hoi Hai Loan

    The best place to get bia hoi in Vietnam
    In Hanoi the bia hoi is often a bit warm and often watered down. You can also find the stuff in a few tourist restaurants in Hue,
    down on the Central Vietnam coast, but keep going a bit further south
    to the lovely town of Hoi An for the best bia hoi you can get.
    Hanoi is an amazing city in quite a few ways, but you’d be crazy if
    it was your only stop on a visit to Vietnam. Hoi An is extremely
    touristy at its heart, featuring no less than 200 tailor shops ready to
    custom make you a suit or dress in a day or so for next to nothing, but
    it’s also lovely, with better and cheaper food, and it’s awash in cold
    bia hoi at even some of its finest restaurants.
    There are so many restaurants in Hoi An that competition is fierce
    and many places hang a sign out front displaying their bia hoi price
    next to their full menu. The going rate in Hoi An is also 3,000 dong,
    though a few places charge 4,000.
    Another
    great thing is the bia hoi in Hoi An is almost always served cold,
    never watered down, and it’s served in really nice restaurants that have
    proper tourist-friendly furniture. The plastic chair on a smoggy street
    corner in Hanoi experience is one you don’t want to miss, but most
    people are over it after a glass or three of the stuff. In Hoi An you
    can eat at wonderful restaurants, including those that overlook the
    scenic river, and quaff an endless stream of higher quality bia hoi as
    you go.

    • meisterbrau

      bleh…who wants to drink that stuff? Id rather pay more for full flavored beer with higher alcohol. 

  • Satu

    Remember guys the people who opposed the approval of the sin tax bills. These b*tches should never be voted to public offices again!

  • http://profile.yahoo.com/RXZ5XENTQSFR6HPWMLEUG3TGGY Kerby

    “Although I belong to the Northern Luzon bloc which opposed the sin tax reforms because of the ill-effects on tobacco growers in our region, I had no choice but to vote for it because the NPC wanted a solid vote,” said Isabela Rep. Giorgidi Aggabao, the committee vice chair.

    ^Ano namang katar*ntad*hang Line to Rep Giorgidi Aggabao? uunahin mo pa pala ang Party Affiliation mo kesa sa mga constituent mo eh. mamat*y ka na lang g*go.

  • kismaytami

    Good thing the current minority is now having the doze of their own medicine.

  • http://pulse.yahoo.com/_IWSC74JRY6R3OJ6DO4XJUWECS4 paranoid_penguin

    This is common sense….Politicians should have done this decades ago!



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