Congress caps regular session with House approval of sin tax
THE 15th CONGRESS today ends its second regular session, capped by the approval of the House of Representatives on third and final reading last night of the bill raising excise taxes on tobacco and alcohol.
House Bill No. 5727, authored by Rep. Joseph Emilio A. Abaya (1st district, Cavite), seeks to update excise taxes currently pegged at 1997 prices.
The measure will also categorize tobacco products, wines and fermented liquors into two tiers and distilled spirits into three, based on net retail prices. The Palace-certified bill was approved on second and third and final readings.
"Basically the provisions in the committee report were approved," Rep. Isidro T. Ungab (3rd district, Davao City) confirmed in a text message.
Mr. Ungab has said that the proposed tax system is expected to raise P31.35 billion which will be earmarked for universal health care and for the benefit of tobacco farmers.
The measure will now be sent to the Senate for further deliberations. All revenue-raising measures emanate from the House.