House Bill No. 5727, authored by Rep. Joseph Emilio A. Abaya (1st district, Cavite), seeks to update excise taxes currently pegged at 1997 prices.
The measure will also categorize tobacco products, wines and fermented liquors into two tiers and distilled spirits into three, based on net retail prices. The Palace-certified bill was approved on second and third and final readings.
"Basically the provisions in the committee report were approved," Rep. Isidro T. Ungab (3rd district, Davao City) confirmed in a text message.
Mr. Ungab has said that the proposed tax system is expected to raise P31.35 billion which will be earmarked for universal health care and for the benefit of tobacco farmers.