MBC supports tax reform on alcohol, tobacco

Makati Business Club (IBC) welcomes the initiative to reform the excise tax on tobacco and alcohol products, which allow the government to optimize their revenue potential and create a strong barrier to excessive use of tobacco and alcohol. In a statement, MBC announced on Wednesday that they support the restructuring of the excise tax on the multilevel structure of the unitary structure of the excise tax on tobacco and alcohol. This will effectively raise equity through the cigarette and alcohol brands to promote market-based pricing in the industry and encourage the entry of legitimate competition. It also demonstrates its commitment to an open and fair competition and respect under international agreements. MBC also said that he favored the elimination of the classification price freeze so the government has the right to charge a competitive rate of excise duty on tobacco and alcohol products. "The current system undermines the tax base, the cost of the Philippine government a significant amount of lost revenue. To address this loophole, we urge lawmakers to increase the excise tax and the burden of tobacco and alcohol products, taking into account inflation in the year, to adequately reflect the negative externalities of consumption of these products" , a business group added. Furthermore, MBC joins the medical community, expressing concern over the increasing number of smokers among the youth of the country, the majority of preventable deaths and disability from smoking-related diseases, as well as the fact that in the Philippines, the 15th-largest market for tobacco in the world with one of the lowest tobacco taxes. He said that the shortcomings of the tax structure governing tobacco and alcohol products allowed the abuse of their consumption, but failed to curb the growth of new smokers and drinkers, particularly among young people and the poor. MBC also said that a society which bears the burden, as evidenced by the annual increase in economic and productivity losses associated with excessive alcohol consumption and smoking. In response to the concerns of some sectors ", resulting in higher prices for tobacco and alcohol products would stimulate the black market, MBC, and urged the government to further strengthen its campaign against smuggling and trafficking in illicit goods. "We firmly believe that strict compliance with customs laws and regulations, as well as effective fight against corruption in the customs and border controls are still key elements in winning the war against smuggling. Fear does work, but it should not interfere with the proper administration of government stakes excise tax, should not that be an excuse to nurture anti-competitive policies and practices, "the business group said. MBC encourages the Government to use part of the additional revenue from excise taxes for promotional and educational activities about the dangers of smoking and alcohol consumption, and allocate a significant part of his Filipino health programs. In addition, the Business Group encourages the Government to expand its technical and financial assistance to farmers Filipinos.