Philippine Finance Minister Margarito Teves has revealed that the Department of Finance (DoF) is willing to compromise with lawmakers over how best to implement the new amendments to sin taxes.
Mr Teves explained that he is happy to meet Congress halfway over the sin tax bill - so long as the changes are brought into effect as soon as possible.
In recent months, the DoF has pushed for Congress to override the current four-tier system of taxing alcohol and cigarettes with one uniform rate.
This would see all cigarettes taxed at P14 (USD0.29) per packet, distilled spirits taxed at P20.38 (USD0.42) per litre, bottles of wine taxed at P502.41 (USD10.5) and fermented liquors taxed at P21.52 (USD0.45) per litre for two years, after which the rates would rise according to inflation.
However, such a system has been deemed too "difficult" by head of the country's Ways and Means Committee, Exequiel Javier, who believes it would be better to impose a two-tier tax system - with one tax rate for high-priced products and another for lower-priced.
Amendments under the sin tax bill are expected to increase government revenues by around P20bn (USD418m) on an annual basis.
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