TODAY'S BUSINESS HEADLINES

US home-builder confidence soars in June

Local oil firms hike pump prices anew

Korean firm to build biggest resort complex in Subic for APEC 2015

Remittances in April reach $2-B

Maynilad rates to go up, Manila Water down in July due to forex volatilities

Senators bucking sin tax reform signed UN tobacco control deal, say advocates

Susan Pineda-Mercado, WHO Western Pacific regional adviser (right) with Department of Finance Undersecretary Jeremias N. Paul during the International Experts' Forum on Sin Tax Reforms, August 28, 2012 (Likha Cuevas-Miel/InterAksyon.com)

InterAksyon.com means BUSINESS

MANILA - An official of the World Health Organization and a group of physicians on Tuesday challenged senators to explain their resistance to sin tax reform despite their ratification of the Framework Convention on Tobacco Control in 2005.

"If you open the preamble of the FCTC, it says that tobacco causes disease, death, suffering, etc. And this was a position that was ratified by the Philippine Senate. In short, there is a position that has already been taken by the Senate on the harm of tobacco," Dr. Susan Pineda-Mercado, WHO-Western Pacific regional adviser, said during a briefing.

"So it would be interesting to find out why there is still a question about something that has already been ratified by the same senators who agreed to that conclusion that tobacco is harmful to health," she added.

During the first hearing on the sin tax reform bill, Senate President Juan Ponce Enrile questioned the validity of claims by health experts that smoking causes non-communicable diseases such as cardiovascular disease, hypertension and lung cancer. He said he started to smoke at 9 years old, quit when he was already 65 years old and has yet to suffer from any of these illnesses.

He also asked the Department of Health to furnish him with statistics on the incidence of these diseases in the tobacco planting regions of Northern Luzon to prove their point.

"In the rural areas I hardly know anybody who died of cancer and we have tobacco everywhere in Cagayan," he said.

According to Senate Resolution No. 195, all of the senators of the 13th Congress ratified the FCTC.  Senator Miriam Defensor-Santiago, who authored Senate Bill Nos. 2998 and 3249 calling for sin tax reform, sponsored SR 195.

The list of the senators of the 13th Congress can be seen here: http://www.senate.gov.ph/senators/sen13th.asp

Back then, Enrile gave the concurrent speech for the resolution on FCTC.

"A ratification is an act of government. It's like the whole Philippine government going into the international treaty or agreement. It is an institutional position," Pineda-Mercado said.

Senator Ralph Recto, chair of the Committee on Ways and Means, said he is not against the hike in sin taxes, claiming he was looking for a balance between the need for government to raise revenues while protecting industry players' right to make a profit.

He said the key to passing the reform measure is finding the "sweet spot."

According to Frank Chaloupka, University of Illinois at Chicago Health Policy Center director, the "sweet spot" may be the 70 percent excise tax based on retail price that other countries are imposing on cigarettes. He said this level would allow the government to collect "real" revenues while allowing the industry to survive.

He said the sin tax levels that are proposed on any of the two senate bills and one House bill - all of which are bucked by industry players - are below 70 percent.

 

InterAksyon.com means BUSINESS

Related Stories:
» Tobacco tax reforms garner international support
RELATED ARTICLES  
BUSINESS NEWS  
OTHER BUSINESS STORIES  
OTHER NATIONAL STORIES  
Business US home-builder confidence soars in June
Business Local oil firms hike pump prices anew
Business Korean firm to build biggest resort complex in Subic for APEC 2015
Business Remittances in April reach $2-B
Business Maynilad rates to go up, Manila Water down in July due to forex volatilities
Business Power crisis fears unnerve industry in booming Philippines
Business Where did OFWs' remittances go in 2Q?
World | Business Who has accounts in offshore tax havens? Investigative journos post database online
Opinion | Business COCKTALES | PCSO names PNoy campaign funder to arbitrate lotto case of Cojuangco in-law
Business | Opinion RANDOM WALKER | It's not yet the bottom of the stock market
Business ANALYSIS | SM takes 'we've got it all for you' to new level with property units' merger
Business | Opinion | National FAT-FREE ECONOMICS | Breaking down the Philippine economy's stunning 7.8-pct growth in 1Q
Business 4 Filipino businessmen on Forbes list of Asian philanthropists