President Benigno S. Aquino III has certified as urgent the Sin Tax Reform Bill that seeks to increase taxes on cigarettes and alcohol products.

“Kakapirma ko po ng certification na urgent (I have just certified it as urgent),” the President announced during his exclusive interview with Bombo Radyo Philippines aired on Wednesday morning.

House Bill 5727 or Sin Tax Reform Bill was recently passed by the House Committee on Ways and Means. The bill, authored by Cavite Representative Joseph Emilio Abaya, will restructure alcohol and cigarette taxes.

The President said that the measure will strengthen the current tax structure and will also help the tobacco farmers to sell their products for more competitive prices.

“Yung sitwasyon ho sa tobacco, for instance, ay nagkaroon ng merger—‘yung dalawang dating magkalaban, naging isa na lang na malaki. At ‘yung batas, ‘yung kasalukuyang batas, sinisigurado ang monopolya nitong kaisa-isang natira. Parang nadi-discourage ‘yung lahat ng ibang mga players na pwedeng maging competitive. Ang epekto po sa magsasaka, iisa lang ang bebentahan... paano mo mapapaangat ang presyo ng ibebenta mong produkto kung iisa lang ang bumibili? Talagang magkakaroon tayo ng sitwasyon na ayaw mo, huwag mo (In the situation of tobacco, for instance, there was a merger--the two previous competitors became one big company. And the current law ensures the monopoly of this remaining player. Others, which have the potential to become competitive, are discouraged. The effect to farmers is that they could sell to only one buyer... how could you manage to increase the price of your product if there is only one who will purchase it? In effect, we have a "take it or leave it" situation),” he explained.

President Aquino added that the restructuring of the sin tax system will bring in additional revenues to the government that can be used to fund public healthcare and provide livelihood assistance to farmers.

“Now, ang paniwala namin, pagtaas nitong buwis na ito dadagdag ng mga 33 billion pesos ang paghahatian ng lahat ng tobacco-growing areas at naka-earmark na (In our understanding, increasing this tax will add 33 billion pesos which can be divided among tobacco-growing areas, which has been earmarked),” he said. “Pero mapupunta ito doon sa health-related na activities at meron din para sa pagsuporta sa livelihood nitong mga magsasaka na nandyan sa tobacco (It will go to health-related activities and also in support for the livelihood of farmers in the tobacco industry).”

“In short, tinutulungan natin ‘yung magsasaka in the sense na merong ibang bibili ng tobacco mo, hindi—ulitin ko nga—hindi ho iisang grupo. Iisa na lang ang bumibili ng tobacco at pwede niyang sabihin kung ano ang presyo niya at wala kang pupuntahang iba (In short, we are helping the farmers in the sense that there will be a different market for their tobacco. When only one group buys your tobacco, s/he can demand his price since you could not go anywhere else to sell it),” he added.

The President said that the measure will also create a more level playing field in the tobacco market adding that the bill will also discourage alcohol and tobacco use.

“Tapos ito nga ho, sin product, ako po’y aminado naninigarilyo ako, gusto rin nating i-discourage dahil malaki ang gastos sa health nito at isama na rin natin ‘yung inumin (I admit that I also smoke, and it is a sin product, we want to discourage the use of alcohol and tobacco use due to its effects on health),” he said.