Congress gives final OK to Sin Tax Reform Bill

On its last day of session before it closes, Congress gave its final approval to the measure increasing the excise tax on tobacco products, or the Sin Tax Reform Bill.

This was after the House of Representatives adopted the re-approved version of the Senate of the said measure.

Under the measure, an excise tax of P45 per pack will be imposed on cigarettes starting January 1, 2020, which will increase further to P50, P55, and P60 per pack in the next three years until 2023.

It will then be raised by 5% every year thereafter starting 2024.

At the same time, an excise tax of P10 per pack of 20 units will be imposed on heated tobacco products, while vapor products will have a P10 excise tax for every 10 milliliters starting January 1, 2020. These rates will increase by 5% annually beginning Jan. 2021.

The Senate initially approved its version on third and final reading on Monday, but it was reconsidered following opposition from some members of the House of Representatives on the amendments on the sharing of the proceeds.

Following consultation with the Department of Finance and House, the Senate agreed to provide a 70% share for towns and municipalities and 30 for provinces.

Speaker Gloria Macapagal-Arroyo explained earlier in the day that the Senate's version was amended due to the opposition of some congressmen from North Luzon.

Following the adoption of the House of the Senate's version, there is no need for a bicameral conference committee to reconcile the versions of the two chambers.

The measure will then proceed immediately to President Rodrigo Duterte for signing and enactment. — Erwin Colcol/RSJ, GMA News