Strong objection to the proposal for a new system of levying taxes on cigarettes in the Philippines has been lodged by the country's tobacco industry, through its allies in Congress.
Congress is currently debating whether to switch from the current four-tier method of taxing different types of cigarettes to a more unified system which could increase government revenues significantly.
However, the switch may end up increasing taxes on low-brand cigarettes by as much as 527% - a move the tobacco industry fears will result in wide-scale unemployment.
Voicing his concern at a hearing on the matter on May 25, House ways and means committee chair rep Exequiel Javier explained:
"The program to give employment will be negated by increasing taxes and making it difficult for the companies to continue and it will result in the layoff of employees."
Ilocos Sur rep Eric Singson added:
“If we restructure the tax, the first to be affected would be the farmers and their livelihood. Taxing tobacco would diminish demand."
According to Bayan Muna rep Teodoro Casiño, if approved, then the government should plough some of its additional revenues back in to the tobacco industry to sustain the farming industry.
Another hearing on the issue is due to be held at the beginning of June.
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