Gov't urged to lower tobacco tax rates

AS ILLICIT TRADE, PRICING WORSEN

- By LOUISE MAUREEN SIMEON

PTI said tax policies and illicit trade are inextricably linked as the organization pushes for the recalibration of tobacco excise taxes and enhancement of enforcement and prosecution efforts.

It issued the call days before the Senate Committee on Ways and Means discusses House Bill 11360, which seeks to adopt an odd-even scheme in hiking the tobacco excise taxes: two percent every even-numbered year and four percent every odd-numbered year until 2035.

The proposed measure aims to cut down the current tobacco excise tax rate, which increases by five percent annually, with a base tax of P60 per pack.

PTI president Jericho Nograles argued that overly aggressive or automatic tax hikes can incentivize illicit trade.