MANILA – The Senate is set to ratify today the bicameral conference committee report on the Sin Tax Reform Bill after both houses of Congress agreed yesterday on the disagreeing provision of the “reform measure” of the Aquino administration.

The announcement was made by Senate committee on ways and means acting chairperson Franklin Drilon.

Drilon said the bicam agreed on the P23.4 billion in incremental revenue to be collected from tobacco industry and P10.56 billion from alcohol products through 69-31 burden sharing in the first year of implementation.

He said the total P33.96 incremental revenue for first year is lower than the Senate version of P39.5 billion.

Drilon said year two or in 2014, the expected total revenue to be collected from sin products would be P42.86 billion; for 2015, P50.63 billion; for 2016, P56.86 billion; and, for 2017, P64.1 billion.

Based on the bicam report, Drilon said, the tax burden sharing will gradually go down in the following years as it will become 66-34 percent ratio in 2015; 65-35 percent in 2016 and 64-36 percent 2017.

On the earmarking, Drilon said the bicam agreed that after deducting the allocations under Republic Act 7171 and RA 8240, the 80 percent of the incremental revenue will be allocated for the Universal Healthcare while 20 percent will allocated nationwide for medical assistance and health enhancement facilities program of the local governments.

Drilon said the bicam amended the provision on the local content of cigarettes.

The amended version states that the total volume of cigarette in the country, any manufacturer of tobacco products must source at least 15 percent of its tobacco leaf raw material supply locally subject to adjustments based on international treaty commitments, Drilon said.*PNA

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