To win: A credible commitment

The topic of elections is understandably the talk of the town. But this essay is not about the winners of the midterm elections. Nor is it about how the antagonistic political rivals can win the 2028 national elections.

- 

The title, “To win,” pertains to a much narrower yet crucial issue that will impact the economy and our people’s health. This is about a Bill in Congress (House Bill 11360) that will reduce the tobacco tax rates. Further, this bill will emasculate the tax structure by removing the provision in the current law for automatic annual tax increases. The automatic increase in taxes, also called indexation, is necessary to reflect real prices and make harmful cigarettes less affordable.

The House of Representatives railroaded the passage of House Bill 11360*. Despite the short timeline before the end of the 19^th Congress, the Senate leadership is bent on passing its version of the House Bill.

It is an open secret that the legislation to lower the tobacco tax rates and remove the indexation is a “done deal,” to quote insiders. And the signs are there, apart from the shameless or garapal manner that the Lower House displayed in railroading the bill’s passage. One sponsor of the House Bill even acknowledged during second reading that the bill will benefit the tobacco industry.

In the Senate, its Ways and Means Committee has called for a meeting to tackle House Bill 11360. Oddly, the Ways and Means Committee is having the meeting at a time that the Senate is not yet in formal session. That further arouses the suspicion that the Senate leadership is speeding up the approval of the bill.

In fact, Senate President Chiz Escudero mentioned in a press conference that the Senate will prioritize increasing excise tax rates on vape products.

Mr. Escudero has a record of protecting tobacco interests. The foremost example of this was exhibited during the vote for the Sin Tax in 2012. Despite his supposed close friendship with then President Noynoy Aquino and his being part of the administration’s coalition, Escudero defied Aquino’s instruction to Congress to vote for tobacco and alcohol tax reforms.