SEVERAL lawmakers on Thursday have expressed support to the passage of the Minimum Cigarette Price (MCP) bill at the House of Representatives.
National Unity Party Rep. Elpidio Barzaga Jr. of Cavite said the House Bill 5013, filed recently by Nacionalista Party Rep. Eleandro Jesus F. Madrona of Romblon, should help stifle the ongoing cigarette price war and discourage the youth from smoking.
The bill seeks to impose a minimum price of P38 per cigarette pack beginning January by 2015; P44 by 2016; and P51 by 2017. Beginning 2018, the floor price would then be adjusted every year by 4 percent.
The floor price does not include excise tax and the 12-percent value-added tax (VAT).
Under the proposal, the tax per cigarette pack shall be pegged at P21 starting on January 1, 2015, if the net retail price, which excludes the excise tax and VAT, is P11.50 and below, and P28 per pack if the retail price is more than P11.50.
The tax will increase to P25 and P29 on January 1, 2016, while a single tax rate of P30 per pack will be imposed starting on January 1, 2017.
This rate will then be increased by 4 percent every year beginning on January 1, 2018.
According to Barzaga the measure hits two birds with one stone as it discourages people from smoking and, at the same time, will generate more revenues for the national coffers and increase the nation’s health care fund in the process.
“Of course, we want the bill’s primary objective of deterring youth smoking to succeed. After all, as public officials, we must put forward the best interest of the nation at heart and in this case, their health,” Barzaga said.
According to Bureau of Internal Revenue data from January to June of this year, excise-tax collections on sin-tax products amounted to P46 billion, exceeding the government’s target of P11.04 billion by 31.6 percent.
Tobacco products had a bigger share of the total, amounting to P28.18 billion. The amount is a 44.4-percent surge from P19.51 billion in 2012.
“Aside from discouraging the youth from smoking, revenue-wise, it’s an excellent complement to Republic Act 10351 or the sin-tax law that has already exceeded its targets,” Barzaga said.
Liberal Party Rep. Reynaldo Umali of Mindoro Oriental said the number of young smokers can be further reduced if a minimum cigarette price bill is passed.
Umali said the number of smokers aged 18 to 24 fell because of the sin-tax law, which raised the prices of alcohol and tobacco products.
Deputy Speaker Sergio Apostol of Leyte said the minimum cigarette price measure was seen to cut the health hazard among the youth.
He said the bill will discourage the young from smoking and prevent them from exposing themselves to dangerous substances brought by smoking.
Meanwhile, Madrona said any cigarette manufacturer that sells products below the tax it pays to the government is not operating in the spirit of achieving the intent of Republic Act 10351, which is to reduce the overall smoking incidence among the youth.
Madrona said the bill, once approved, will strengthen the country’s sin-tax law and the recently passed Graphic Health Warning law which requires all cigarette manufacturers to print health risk warnings on all cigarette packs.