Senior government officials said today that the tobacco industry can afford the government's preferred version of the sin-tax reform bill. Secretary Ramon Carandang of the Presidential Communications Development and Strategic Planning Office (PCDSPO) sent the message when he was responding to the concerns raised by Philip Morris Fortune Tobacco Corp. (PMFTC) on the sin-tax measure.
"That's a common argument brought up in almost every country where sin taxes are about to be increased. But the evidence will show that after a period of adjustment tobacco company incomes recover," Carandang said, trying to downplay the concerns that the measure would lead to massive unemployment in the tobacco industry and encourage smuggling.
"The industry can afford it. Plus the greater good that the revenues can do for public health make it hard to argue against it, " Carandang added. In an interview with state-run Radyo ng Bayan today, Deputy Palace Spokesperson Abigail Valte reiterated the government 's assurance that the sin-tax measure would not lead to massive unemployment in the tobacco industry, since part of its revenues would be used to fund safety nets for affected farmers.
"On the job losses, we have a safety net. Part of the revenue that will be collected will go into a safety net for tobacco farmers precisely because there are concerns that some of them might be displaced," Valte added.
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