Solons call for moderate hike of tobacco tax
PANGASINAN congressmen are backing the position of the Northern Luzon Alliance (NLA) for a moderate increase in the tax of tobacco products.
The province’s six representatives Jesus Celeste, Leopoldo Bataoil, Rachel Arenas, Gina de Venecia, Kimi Cojuangco, and Marlyn Primicias Agabas as well as Abono partylist Rep. Robert Estrella Jr. announced their support after meeting Ilocos Sur Governor Luis Chavit Singson last Tuesday.
In the meeting, the province’s congress representatives sought a clarification from Singson about House Bill No. 2727 that seeks to restructure the four-tiered tax system on tobacco products into a single system.
De Venecia said that they met Singson in the light of reports that Singson has thrown his support to the bill authored by Cavite Congressman Joseph Emilio Abaya.
The Abaya Bill seeks to levy a P30 tax per pack on all tobacco products within three years of implementation of the single tax system.
The report said that while members of the NLA recognize the need to increase excise tax rates on tobacco products, they said that any adjustments made must be moderate and within reasonable range.
Congressman Victor Ortega of La Union expressed concern that implementing excessive increases in tax rates may result in the demise of the country’s tobacco industry.
Tobacco is a main cash crop of the provinces in Northern Luzon, particularly, Ilocos Sur, La Union, Ilocos Norte, Pangasinan, Abra, Isabela and Cagayan.
All these provinces receive a share from the excise tax on tobacco as provided for in Republic Act 7171.
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