Gov Singson favors raising cigarette taxes

By Christian D.Supnad

VIGAN CITY, Ilocos Sur - Believing it will break the monopoly of the tobacco industry, Gov. Luis “Chavit” Singson said he was supporting the proposed raising of multi-billion cigarette taxes,

Singson pushed for the passage of House Bill Number 5727 or sin taxes, saying tobacco growers this will not kill the tobacco industry.

In a press briefing inside the Baluarte, his official residence, Singson said raising cigarette taxes will actually favor tobacco farmers since this will open the entry of other foreign tobacco buyers into the country and give higher prices for Virginia tobacco.

Singson, who authored of Republic Act 7171 otherwise known as Tobacco Excise Law when he was a congressman, said he decided to support the HB 5727 to break the monopoly of tobacco buyers who he said are controlling the prices of Virginia tobacco prices but earning big amounta of money at the expense of tobacco growers.

Singson said only cigarette manufacturers are getting rich while tobacco farmers remain begging at them.

The government is reportedly earning more than P30 billion yearly alone from the tobacco industry.

Singson, chairman of the League of Provinces of the Philippines, said he could do nothing in the past when tobacco farmers asked him to find means increase prices of their tobacco products. This is too much already, he said.

The governor also expressed apprehension with the merging of two giant tobacco buying companies, saying they can now further dictate and monopolize tobacco prices.

The British American Tobacco (BAT) is reportedly entering into the tobacco business in the country and this will help solve the problem of the tobacco planters for higher prices of their products.