House OKs tax hike on alcohol, vape products on third reading
Aileen Cerrudo • August 21, 2019 • 1004
The House of Representatives has approved on third and final reading the bill which seeks to increase taxes on alcohol and vape products.
Based on House Bill No. 1026 “distilled spirits shall have an excise tax of 22% of the retail price, as well as an additional specific tax of P35 per proof liter in 2020, P40 in 2021 and P45 in 2022. The specific tax shall be increased by seven percent every year afterwards.”
The Committee on Ways and Means chairman Rep. Joey Sarte Salceda assures the excise tax on tobacco products, as stated in the bill, is only for vape products.
“So if you are so afraid of the tobacco taxes, there are no new tobacco taxes (in the bill) except for vape which is not a tobacco product. It is essentially a vape, non-combustion,” he said.
Salcedo added that vape products will have an increase of P30 in excise tax from the current P10.
The bill states that selling heated tobacco products and vapor products at prices lower than the combined excise and value-added tax rates required by the law shall be prohibited.
There will also be a Joint Congressional Oversight Committee which will be referred to as the Oversight Committee on Illicit Trade on Excisable Products.
The said committee will (a) evaluate the programs and performance of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) in addressing illicit trade on excisable products and recommend remedial legislation; (b) require concerned agencies to submit reports and data that can aid in resolving illicit trade of excisable products; (c) hold public hearings; and (d) deputize the BIR, the BOC, the Philippine National Police, the National Bureau of Investigation and other enforcement government agencies as may be needed, among others.
Meanwhile, DOF Undersecretary Karl Kendrick Chua told reporters last Thursday (Aug 15) that they are not satisfied with the House version of the bill.
“We are not satisfied with the House version, but it’s a starting point. We hope to convince senators to go for higher rates for the universal health care program,” he said.—AAC
MANILA, Philippines – The House of Representatives on Monday started its plenary deliberations on proposals seeking to amend the “restrictive” economic provisions of the 1987 Philippine Constitution.
Ako Bicol Party-list Rep. Alfredo Garbin Jr., the chairperson of House committee on constitutional amendments, sponsored Resolution of Both Houses (RBH) No. 2 in the plenary, signifying the start of the entire chamber’s discussion on the proposed changes in the economic provisions of the country’s charter.
In his sponsorship speech, Garbin stressed that passing the resolution will give the government the freedom to adopt measures that will pave the way for economic development.
“It is wise for Congress to amend the Constitution by adding the phrase ‘unless otherwise provided by law’ in order to give the government enough flexibility to consider different circumstances prevailing at different stages our road to economic development before formulating policies that should be time-bound,” he said.
Garbin emphasized that economic conditions “are never static, so must the fundamental law be freed from the constraint of rigidity. While it is reduced to writing, it should not be devoid of the element of flexibility.”
The House panel earlier approved RBH No. 2 which aims to amend existing economic provisions in the Philippine charter to open up the country to foreign investors in a bid to help the pandemic-battered economy to recover.
Garbin noted observations that the Constitution’s restrictive economic provisions “have proven to be a bane, rather than a boon for the country, for they have restricted or discouraged the flow of foreign direct investments.”
“While these provisions may be very well-meaning and appear to favor the interests of Filipinos, over the long haul, the country and the common good of all Filipinos suffer,” he added.
The lawmaker also said that the Philippines should not be afraid to compete in today’s global economy as he stressed on the need to amend or eliminate overly protective provisions to attract more foreign investments.
The legislator was referring to provisions of the Constitution that limit foreign ownership in business enterprises operating in the country, including public utilities.
While the solon reminded his fellow lawmakers that all Filipinos are duty-bound to respect and obey the Constitution, “the obligation to respect, obey and to dutifully protect does not equate to permanence.”
“It does not mean that the tenets therein would no longer be changed if change is necessary and if change is desired by the people.”
Garbin earlier said that the House plans to approve the resolution on third and final reading before Congress goes on recess on March 27.
MANILA, Philippines – The House of Representatives is set to approve on Monday, February 22, a bill seeking to establish an indemnification fund and expedite the procurement of vaccines against novel coronavirus disease (COVID-19).
House Speaker Lord Allan Velasco said the lower chamber is expected to pass House Bill No. 8648 on second and third readings after the measure was certified as urgent by President Rodrigo Duterte.
“As soon as we were apprised that the indemnification fund is a requirement of the vaccine manufacturers, we wasted no time in filing House Bill 8648, which would allow emergency procurement of vaccines and provide the required indemnification fund,” Velasco said in a statement.
House Bill 8648 proposes to provide exemptions to compliance by local government units with the procurement requirements under Republic Act 9184 or the Government Procurement Reform Act in the purchase of Covid-19 vaccines and other much-needed supplies during the pandemic.
The bill pushes for the vaccines to be exempted from customs duties, value-added tax, excise tax, and other fees, provided that the shots to be acquired by LGUs “shall only be used for their residents and constituents, and not for commercial distribution.”
The bill is now up for second reading after it was approved by the Committee on Appropriations and sponsored in plenary.
Aside from the vaccine indemnification bill, Velasco said the House is also prepared to pass the proposed Bayanihan to Arise as One Act (Bayanihan 3), which proposes a P420-billion fund for the implementation of much-needed COVID-19 response and recovery interventions.
The proposal also includes a P25-billion budget for COVID-19 treatment and vaccines.
The House speaker said the lower chamber has always been supportive of the national government’s efforts to fight COVID-19 noting the passage of the 2021 national budget, which includes a P72.5 billion allocation for vaccine procurement, as well as the Bayanihan 1 and 2.
“Rest assured that the House will continue to pass legislation that would help sustain the national government’s efforts in addressing the pandemic, so we can all return to normal at the soonest possible time,” he said.
MANILA, Philippines – President Rodrigo Duterte has expressed his gratitude to the members of Congress for filing a bill seeking for the third installment of Bayanihan Law to help the government respond to the COVID-19 pandemic and its impact.
In his public address on Monday night, Duterte said the measure will assist the administration further tackle the pandemic and help the country recover from the health crisis.
“I also would like to thank the Congress of the Republic of the Philippines for understanding us and giving us the support — the critical support that we badly need to discharge our duties,” he said.
“Wala akong masabi diyan sa — in a matter of ‘yung pagtulong sa COVID problem. That is why in fairness sa Congress naman na pera man kasi ito ng tao, they appropriate, they give us the money that, we, dito sa implementing arm ng government, the Executive department, the ones doing the actual work,” he added.
House Speaker Lord Allan Velasco has proposed a third installment of Bayanihan Law, which seeks to provide a P420-billion fund to aid the country’s economy recover from the effects of the COVID-19 pandemic.
Velasco, along with Marikina Representative Stella Quimbo, filed House Bill 8628 or the Bayanihan to Arise as One Act (Bayanihan 3 Law).
A similar bill was also filed in the Senate that outlines P485-billion worth of interventions amid the pandemic.
Vaccine czar Secretary Carlito Galvez Jr. also thanked Congress for the bill, which he said is important as it covers Indemnification Fund, tax-free importation and Custom duties to speed up vaccine delivery and transport.
“Iyong mga kailangan po natin na mga law na maipasa para matulungan po tayo na mapabilis po ‘yung pagpunta po dito ng vaccine,” Galvez said.
“Para po mabilis po ‘yung pag-transport po ng ating vaccine from the airport na wala na po talagang Customs inspection,” he added.
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