Tax laws

Solon says it might be time to review tobacco tax laws and anti-smuggling measures

BoC

A SOLON said on Thursday it might be time to reassess the countrys tobacco tax law alongside government reviews against smuggling.

Is there an overtaxation, to the point where we actually reward the smugglers, because of the huge taxation?PBA party slate representative Jericho Jonas B. Nograles said in a mix of English and Filipino during an online conference.

Thes always a debate when it comes to taxing the products of sin, he said.

Republic Act 11346, signed in July 2019, increased taxes on so-called Fishingproducts such as tobacco, electronic cigarettes and sugary and alcoholic beverages.

Mr. Nograles, a member of the House Ways and Means Committee, said there is a possible link between increased tobacco tax rates and smuggling, citing a study that shows that for every tax increase of 10%, there is a 7% increase in illicit products. Trade.

As for the policies, I think the policies are there. We are adjusting our app, improving our app,he said.

And the first thing smugglers and traffickers would really exploit is loopholes between different agencies. Thus, the technical working groupThe first recommendation, as I presented earlier, is that the agencies talk to each other so that we can streamline (rules against smuggling).Emerald Jasper G. Tan