Latest Stories

As ‘sin tax’ looms, gov’t tends to tobacco farmers


HOPING to minimize the impact of the “sin tax” measure, the tobacco industry will have to resort to “import substitution” and step up local production of tobacco while cutting back on imports.

Edgardo Zaragoza, head of the National Tobacco Administration (NTA), said the attached agency of the Department of Agriculture is scheduled to meet with manufacturers of cigarette and tobacco products on Wednesday next week to discuss measures on how to deal with the “sin tax bill” once it is signed into law by President Aquino.

The senators approved on Monday the sin tax bill on the third and final reading after agreeing on a 60:40 burden-sharing ratio between tobacco and alcohol taxes.

By next year, the new measure is expected to raise an additional P33.96 billion in taxes, on top of present collections from tobacco and alcohol products.

“The sin tax law wouldn’t affect the industry perhaps until next year. But we have to see how the market will respond in the succeeding years,” Zaragoza told the Inquirer.

He said the NTA is coordinating with cigarette manufacturers about the important qualities of imported tobacco products should they replace it with locally produced one.

To keep the tobacco farmers employed, the industry must rely on export demand if the local consumption of cigarettes would decline in the next few years.

According to the NTA, of the total production of tobacco in 2011, 52 percent of it was exported while the rest are consumed within the country.

“Assuming we maintain or increase the level of exports, there’s a good chance the industry wouldn’t suffer losses (from the sin tax bill). We have to do import substitution,” he said.

Agriculture Secretary Proceso Alcala expressed confidence that the bill would not affect tobacco farmers in the country.

“I’ll bet the number of tobacco farmers in the country would stay the same. If ever there would be a decline in local consumption, there’s always a big demand outside the country,” he said.

“As long as the income is there, they (farmers) will continue planting,” Alcala added.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , import substitution , sin tax , tobacco farmers , tobacco industry

  • fmalandy

    Siyempre, natakot sina Cayetano, Guingona at Villar sa buwelta ng mga tobacco farmers kaya di bumoto sa sin tax measure. Kinabog ang mga loko

  • Mah_Ehpal

    Ano pa ang silbi ng pakikipag-alliance ng Nationalista Party sa LP kung hindi nila susuportahan ang gobyerno sa kanilang program. Useless di ba?

  • earnestoe_masethe

    Kahit naman ang mga
    allies ng LP like Sens. Alan Peter Cayetano and Villar, wala ring silbi. Hindi
    rin sila bumoto sa sin tax measure.

    • depyutie_deerektowr

      Then if that’s the case, Mar Roxas should be replaced as LP president.
      He cannot lead the party.

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Henares on Pacquiao bashing: I did not start this
  • Drilon, Nancy Binay urge Filipinos to strengthen faith
  • ‘Yolanda’ toll now at 6,300 – NDRRMC
  • ‘Mom, I love you,’ says text from student on sinking ferry
  • Moderate earthquake jolts southern Iran
  • Sports

  • Power Pinays smash India in Asian Women’s Club volleyball opener
  • PH youth boxers off to stumbling start in AIBA World tilt
  • Durant has 42, Thunder beat Pistons 112-111
  • Walker leads Bobcats over Bulls in OT, 91-86
  • Man City slips further out of title contention
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • Business

  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Number of retrenched workers rose by 42% in ’13
  • Technology

  • Netizens seething in anger over Aquino ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Marketplace