MANILA, Philippines (3rd UPDATE) - The Aquino government made giant measures in what his predecessors tried although failed to carry out: pass a sin taxes reform costs at the Property of Representatives, inching closer to enacting that into law. The popular and determined government put the weight behind a bit of legislation that rests in the middle of industries where politics and economics traditionally intersect: trouble taxes. Upon late Friday, June six, a change bill around the most crucial component that makes " sin" products--tobacco and alcohol--affordable made it through the plenary with the Lower Home. It has been a lot more than 15 years since a sin tax bill made it out of committee meetings and was finally voted on by congress. In a landslide vote, 210 lawmakers preferred the Palace-backed House Expenses 5727, whilst 21 opposed and a few abstained. The votes overrode traditional concerns, such as task losses and smuggling, raised by anti-sin tax reform lawmakers. �
Check Rappler's live blog upon what proceeded during the crucial voting with the House. The check will result in higher prices for most cigarette and alcohol brands, addressing a stigma that the cheapest desprovisto products on the globe are found in Philippines, simply no thanks to strong lobby from your politically-connected market players. �
It will also raise between P31 billion to 33 billion in fees during their first yr, boosting the fiscal overall health of the authorities so it may afford to supply more interpersonal services, among others.
When the sin taxes reform costs becomes a law, alcohol and cigarettes--especially the lower-priced brands--will get more costly for the average consumer. In its current variation, cigarette packs that were much more than P11. 60 will cost an additional P30 in 2013. Although a low-cost beer under P50. 70 will cost an additional P13. 75. Below are the differences between the current 4-tiered duty system and the HB 5727's two-tiered one:
Below are the HB5727's reforms for the precise liquor goods:
Rates will be...