With President Rodrigo Duterte certifying as urgent the bill that would make so-called “sin” products—alcohol, heated tobacco and vapes—more expensive, expect a spike of prices of these by the start of 2020, according to Finance Secretary Carlos G. Dominguez III.
The bill would slap higher excise on the products which could double their prices.
Dominguez told reporters late Tuesday, Nov. 12, that he and Senate President Vicente Sotto III had requested the President to certify the bill as urgent so it could be passed before the end of 2019.
He said if the bill is passed after January 2020, “it’s very hard to implement the law midway in the year.” “The reception has been very good from the senators,” he said.
After the P4.1-trillion 2020 national budget is passed in the coming days, Dominguez said the sin tax bill was likely to be acted upon by Congress prior to its three-week holiday season break.
Although the Department of Finance (DOF) has its preferences on the amount of excise and schedule of implementation, Dominguez said “we leave it up to the legislature” to pass its version of the bill.
Dominguez said the Bureau of Internal Revenue (BIR) had already started to draft the implementing rules and regulations (IRR) for the upcoming adjustment in excise of sin products.
Senate Bill (SB) No. 1074 is currently on second reading, or period of interpellation. Dominguez said the Senate bill had been “well-studied” and supported its immediate approval./TSB