JV Ejercito: Raise tobacco tax, lower oil excise tax

Sen. JV Ejercito. (DWWW 774 image)

SENATOR JV Ejercito on Tuesday revived his proposal to raise tobacco tax and lower excise tax on petroleum products to counter the inflationary effects of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

“Perhaps it’s now the right time for economic managers to reconsider my proposal during the height of the TRAIN debates, which is to raise tobacco taxes instead of the excise tax on petroleum,” said Ejercito.

Ejercito said there is still room for raising tobacco tax as the price of cigarettes and tobacco products in the country is still cheaper than that of other countries in Asia.

“Many are calling for the suspension of TRAIN law, particularly the excise tax on petroleum. My solution will not be to suspend just the TRAIN and instead get the revenue to be lost from tobacco tax,” said Ejercito.

“I would, again, pursue my earlier proposal to raise taxes on tobacco products. This will hit two birds with one stone: we will raise much needed revenues for the needs of the government and, at the same time, it will now become a health measure to really reduce the number of smokers,” he said.

p: wjg