Plug tax leaks first before raising taxes
Plug tax leaks first before raising taxes
Updated 03:27am (Mla time) Nov 12, 2004
By Neal Cruz
Inquirer News Service
Editor's Note: Published on page A14 of the November 12, 2004 issue of the Philippine Daily Inquirer
THE HOUSE of Representatives has passed the bill increasing the "sin taxes," but the sins were not treated equally. Tobacco was taxed much higher than alcohol. For which reason Sen. Ralph Recto said the tax bill "should not prescribe unequal acts of contrition by the two sinners. The wages of sin should be equal."
Compare the tax load on the two sin products:
For every P1 cigarette sale, almost 40 centavos goes to tax. Last year, out of gross tobacco sales of P49.6 billion, P19.4 billion went to the Treasury as excise tax, Recto said.
But for every peso paid for gin, rum, brandy and whisky, only 14 centavos goes to tax. Last year, out of gross sales of P34.77 billion of distilled spirits, only P4.78 billion was paid in taxes.
And in the case of cigarettes, shouldn't we plug the tax leaks first before raising taxes again? Because of the high prices of cigarettes due to high taxes, smuggling is rampant. Increase the taxes some more and smuggling will also increase.
Last year, we lost P2.9 billion in revenues through smuggling, according to Rep. Joey Salceda. He said cigarettes are able to escape taxes through Section 131 of the tax code that exempts cigarettes and liquor from excise taxes if these are transacted in Subic or Clark. In short, this is one form of "legalized smuggling."
Salceda said that if the idea of excise taxes is to penalize consumption of products with high social and health costs, it must apply to the products wherever they are sold. Imported cigarettes brought in through Clark, Subic and the Southern backdoor also cause lung cancer like those made and sold in the Philippines.
* * *
The Christmas season is also the season for reunions, and journalists, although most of their waking hours are spent chasing stories, are not spared this human yearning to see old friends and relive joyful times together. Although competition among reporters is very keen during working hours, camaraderie takes over after deadline. Bonding is exceptionally strong among journalists. When journalists happen to work together, they usually remain friends for life. And because many journalists work for different newspapers in the course of their careers, their friends are spread out not only in the industry but also in other fields, as many of them move on to politics and government, to business, law, advertising, public relations, etc.
By coincidence, veterans of different newspapers that have been closed by martial law are holding reunions this month and next. Most of them now work for other newspapers, but the call of old times together still pull them.
This Sunday, Nov. 14, alumni of the old Manila Chronicle (not to be confused with the new Manila Chronicle in the same way that the old Manila Times should not be confused with the new Manila Times) will reunite for lunch at Casa Armas, off Tomas Morato Avenue, Quezon City. The host is Mayor Feliciano Belmonte, who was a young police reporter of the Chronicle back when I.P. Soliongco, Armando Malay and Celso Cabrera were its top columnists.
On Nov. 20, it will be the turn of the veterans of the Daily Globe to get together for dinner at the Sanville, Quezon City residence of Rolando Estabillo, who was its managing editor before he joined Philippine Airlines as vice president for corporate communications.
And on Dec. 9, the alumni of The Evening News, which used to be the No. 1 newspaper back in the 1950s until a labor strike closed it (martial law closed the later Evening News that replaced it), will have their dinner-reunion at the Sunrise Terrace in Legaspi Village, Makati. Melody Santos-Drexler, who was one of its deskgirls when I was its managing editor and slot man, surrounded by the most beautiful, shapely and bright young girls in Philippine journalism then (among them, Julie Yap, Bobbie Malay, Carmen Hernandez, Minnie Montemayor, Mona Cabili), is hosting the dinner. Carmen, who is now residing in the United States, is coming home just for the reunion.
On Nov. 30, the biggest reunion will be held at the Manila Hotel for the alumni of the Faculty of Philosophy and Letters (Philets) and the Faculty of Arts and Letters (Artlets) of the University of Sto. Tomas. Most of the present newspaper organizations are staffed with graduates of Philets and Artlets. The two colleges were combined into one Artlets years ago.
And on Nov. 25, Samahang Plaridel, the new press club composed of the top journalists in the country, will inaugurate its piano bar and clubhouse on the first and third floors of the Traveler's Life building at the corner of two Manila streets named after outstanding Filipino journalists and heroes, Marcelo H. del Pilar and Teodoro M. Kalaw. President Macapagal-Arroyo has been invited as the guest of honor.
Journalists are invited to all the above-mentioned reunions.
The Plaridel clubhouse and piano bar, named The Front Page, are designed to be the watering hole of journalists, a place to unwind after deadlines. Music, dancing, drinks, fine food and convivial company on the first floor, and a lounge with a reading room, piped-in mood music, a billiard room, its own kitchen and another bar, television sets, chess sets and an office with computers on the third floor.
Plaridel is also erecting a seven-foot statue of Del Pilar, a joint project with Manila Mayor Lito Atienza, at the Children's Park on F.B. Harrison Street in Malate. The bronze statue is being sculpted by well-known sculptor Julie Lluch. Plaridel is now conducting a fund drive for the monument. Wouldn't it be a nice gesture this Christmas to gift Del Pilar with a donation for his monument?
Updated 03:27am (Mla time) Nov 12, 2004
By Neal Cruz
Inquirer News Service
Editor's Note: Published on page A14 of the November 12, 2004 issue of the Philippine Daily Inquirer
THE HOUSE of Representatives has passed the bill increasing the "sin taxes," but the sins were not treated equally. Tobacco was taxed much higher than alcohol. For which reason Sen. Ralph Recto said the tax bill "should not prescribe unequal acts of contrition by the two sinners. The wages of sin should be equal."
Compare the tax load on the two sin products:
For every P1 cigarette sale, almost 40 centavos goes to tax. Last year, out of gross tobacco sales of P49.6 billion, P19.4 billion went to the Treasury as excise tax, Recto said.
But for every peso paid for gin, rum, brandy and whisky, only 14 centavos goes to tax. Last year, out of gross sales of P34.77 billion of distilled spirits, only P4.78 billion was paid in taxes.
And in the case of cigarettes, shouldn't we plug the tax leaks first before raising taxes again? Because of the high prices of cigarettes due to high taxes, smuggling is rampant. Increase the taxes some more and smuggling will also increase.
Last year, we lost P2.9 billion in revenues through smuggling, according to Rep. Joey Salceda. He said cigarettes are able to escape taxes through Section 131 of the tax code that exempts cigarettes and liquor from excise taxes if these are transacted in Subic or Clark. In short, this is one form of "legalized smuggling."
Salceda said that if the idea of excise taxes is to penalize consumption of products with high social and health costs, it must apply to the products wherever they are sold. Imported cigarettes brought in through Clark, Subic and the Southern backdoor also cause lung cancer like those made and sold in the Philippines.
* * *
The Christmas season is also the season for reunions, and journalists, although most of their waking hours are spent chasing stories, are not spared this human yearning to see old friends and relive joyful times together. Although competition among reporters is very keen during working hours, camaraderie takes over after deadline. Bonding is exceptionally strong among journalists. When journalists happen to work together, they usually remain friends for life. And because many journalists work for different newspapers in the course of their careers, their friends are spread out not only in the industry but also in other fields, as many of them move on to politics and government, to business, law, advertising, public relations, etc.
By coincidence, veterans of different newspapers that have been closed by martial law are holding reunions this month and next. Most of them now work for other newspapers, but the call of old times together still pull them.
This Sunday, Nov. 14, alumni of the old Manila Chronicle (not to be confused with the new Manila Chronicle in the same way that the old Manila Times should not be confused with the new Manila Times) will reunite for lunch at Casa Armas, off Tomas Morato Avenue, Quezon City. The host is Mayor Feliciano Belmonte, who was a young police reporter of the Chronicle back when I.P. Soliongco, Armando Malay and Celso Cabrera were its top columnists.
On Nov. 20, it will be the turn of the veterans of the Daily Globe to get together for dinner at the Sanville, Quezon City residence of Rolando Estabillo, who was its managing editor before he joined Philippine Airlines as vice president for corporate communications.
And on Dec. 9, the alumni of The Evening News, which used to be the No. 1 newspaper back in the 1950s until a labor strike closed it (martial law closed the later Evening News that replaced it), will have their dinner-reunion at the Sunrise Terrace in Legaspi Village, Makati. Melody Santos-Drexler, who was one of its deskgirls when I was its managing editor and slot man, surrounded by the most beautiful, shapely and bright young girls in Philippine journalism then (among them, Julie Yap, Bobbie Malay, Carmen Hernandez, Minnie Montemayor, Mona Cabili), is hosting the dinner. Carmen, who is now residing in the United States, is coming home just for the reunion.
On Nov. 30, the biggest reunion will be held at the Manila Hotel for the alumni of the Faculty of Philosophy and Letters (Philets) and the Faculty of Arts and Letters (Artlets) of the University of Sto. Tomas. Most of the present newspaper organizations are staffed with graduates of Philets and Artlets. The two colleges were combined into one Artlets years ago.
And on Nov. 25, Samahang Plaridel, the new press club composed of the top journalists in the country, will inaugurate its piano bar and clubhouse on the first and third floors of the Traveler's Life building at the corner of two Manila streets named after outstanding Filipino journalists and heroes, Marcelo H. del Pilar and Teodoro M. Kalaw. President Macapagal-Arroyo has been invited as the guest of honor.
Journalists are invited to all the above-mentioned reunions.
The Plaridel clubhouse and piano bar, named The Front Page, are designed to be the watering hole of journalists, a place to unwind after deadlines. Music, dancing, drinks, fine food and convivial company on the first floor, and a lounge with a reading room, piped-in mood music, a billiard room, its own kitchen and another bar, television sets, chess sets and an office with computers on the third floor.
Plaridel is also erecting a seven-foot statue of Del Pilar, a joint project with Manila Mayor Lito Atienza, at the Children's Park on F.B. Harrison Street in Malate. The bronze statue is being sculpted by well-known sculptor Julie Lluch. Plaridel is now conducting a fund drive for the monument. Wouldn't it be a nice gesture this Christmas to gift Del Pilar with a donation for his monument?
posted by Dante at 1:35 PM
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