‘Sin taxes’ now a law

By JUNE S. BLANCO

BAD news for smokers and drinkers?

President Benigno Aquino III has signed the “sin tax” bill making it into the Alcohol, Cigarettes and Tobacco Tax law.

This effectively raises the prices of cigarettes and liquor, aimed on one hand to curb, if not, eliminate the smoking and drinking habits of the Filipinos.

But at the same time, it is geared to raise more revenue for the cash-strapped country.

Rep. Erico Aumentado (Bohol, 2nd District), had co-authored the House version of the bill. He said revenue from the sin taxes will finance the Universal Health Care (UHC) program, expanding its coverage, reduce the prevalence of smoking as well as the smoking-related disease burden estimated at P177.2 billion in 2011.

The increased revenues will strengthen fiscal and macroeconomic health, improve credit and investment grade rating as well as infrastructure and social services. The sin taxes can construct more school buildings, hire new teachers, and provide computers with internet for the Information and Communications Technology (ICT) program for students and teachers in support of the K plus 12 program of the Department of Education (DepEd).

The solon also said the tobacco taxes will reduce the number of young smokers. Likewise, reforms under this law will protect the poor who suffer the brunt of smoking-related diseases. To note, majority of the 300,000 Filipinos who die every year of sicknesses like cancer come from the poor.

He observed that four out of 10 of the poorest 20 percent of Filipino adults are current smokers compared to only one of four of the richest 20 percent who smoke regularly.

Besides, he added, the tobacco farmers will get earmarked funds equivalent to 15 percent of the incremental revenues from tobacco taxes for alternative livelihood and safety nets. Leveling the playing field will erode the power to dictate the price for the tobacco farmers’ produce and will mean better prices for them, he explained.

Aumentado also said the new revenues will increase the resources of local governments and congressional districts for PhilHealth and other health programs.

He said the reforms spell long-term prosperity – stem the silent epidemic of smoking and alcohol-related diseases and deaths, improve the lives and capabilities of the nation’s work force, enhance the quality of governance and enable long-term inclusive growth.

House OKs NEA reforms, ups capital to P25 billion

Rep. Erico B. Aumentado

2nd district, Bohol

 

By JUNE S. BLANCO and ROY PADEL

 QUEZON CITY. – The Lower House has approved House Bill 6214 seeking reforms in the National Electrification Administration (NEA) and raising its capital to P25 million.

Principally authored by Rep. Erico Aumentado (2nd District, Bohol), Rep. Henedina Abad (Batanes), Rep. Arnulfo Fuentebella (Camarines Sur), Rep. Eduardo Gullas (Cebu), Rep. Salvador Cabaluna III (Party list 1CARE) ug Rep. Rufus Rodriguez (Cagayan De Oro), among others, the bill aims to provide electricity to more puroks and public schools especially in the countryside.

Aumentado envisions the increased agency capital to replenish and to add to the original capital of P5 million for NEA to expand its services especially now that President Aquino has tasked it to expand the coverage of its rural electrification program through electric cooperatives to include the remote barangays and islets.

The bill also tasks NEA to strengthen electic cooperatives to make them economically developed and competitive in distributing power as provided for in Republic Act 9136 or the Power Industry Reform Act of 2001 that mandates NEA to supervise the operations of all electric cooperatives as well as provide financial and technical assistance.

The reforms bill also empowers NEA to take over the operations of electric cooperatives that are financially bleeding due to mismanagement.

The bill also provides these cooperatives with the right to own and maintain electric sub transmission and distribution lines along with the establishment of plants to generate electricity within their respective franchise areas. Along this line, the bill also allows electric cooperatives to participate in biddings – and gives them preference should their bids tie with the rate of competitors.

Another proposed reform is the provision of autonomy to these electric cooperatives and their respective boards of directors as a cushion against politics and politicians and chief executives who have axes to grind against them, debts of gratitude to repay or vindictiveness against connection applicants who did not vote for them in prior elections like in the cases of Trinidad and Inabanga towns where applicants were refused permits to tap to the system through the Bohol II Electric Cooperative, Inc. (BOHECO II).

To note, Aumentado had signed a memorandum of agreement (MOA) with NEA Administrator Edita Bueno and Boheco to vigorously implement the rural electrification program under the Aquino administration. Aumentado and NEA provided counterpart funds while Boheco II implemented the energization program especially in schools at the sitio level and other communities.

Aumentado had poured P16 million into the project as counterpart to NEA’s over P128 million as Bueno signed. Engr. Carlos Itable, general manager of Boheco II had signed for the electric cooperative. 

House probes payola by Jap bizman to PAGCOR

By JUNE S. BLANCO 

QUEZON CITY. – The Lower House will investigate shortly the alleged US$30 million payola that a Japanese businessman had given to a PAGCOR consultant.

Introduced by Rep. Erico Aumentado (2nd District, Bohol), House Resolution 2931 states that the investigation, in aid of legislation, will probe the payola that Japanese billionaire Kazuo Okada’s Universal Entertainment to one Rodolfo Soriano in 2010 – for lobbying to secure tax and other government concessions for the Japanese firm.

The resolution said the sum is six times the amount initially confirmed by Reuters that Okada’s Hongkong-based firm Universal Entertainment had sent to Soriano in a series of payments made in the first half of 2010. Soriano is alleged to have close ties with then PAGCOR Chair Efraim Genuino.

It further states that Genuino was acknowledged to be the brain behind the establishment of a gambling strip in Metro Manila “in the mold of Las Vegas and Macau where Universal Entertainment has allegedly applied to set up a US%2 billion casino facility.”

The reported Universal payments to Soriano were described at a company meeting to be “a complete bonus” for his help in clearing remaining hurdles for the casino, including an exemption from corporate tax and foreign ownership restrictions – people involved in the project were quoted in the Philippine Daily Inquirer to have said.

Aumentado said there is a need for the National Bureau of Investigation (NBI) to look into the alleged payola, especially the paper trail, help determine the parties involved and benefited in the apparent bribery and violation of the anti-graft and corrupt practices act.

He also said there is a need for the House of Representatives to determine the appropriate legislation to plug the loopholes, if any, in the laws involved and transactions related to gambling casinos at the Metro Manila strip for the purpose.

The resolution also provides that the house Committee on Good Government and Accountability to probe the alleged payola and recommend the necessary remedial legislations which may be necessary as a consequence of the inquiry.

It further tasks the National Bureau of investigation (NBI) to investigate the criminal aspect of the alleged payola.

House urges probe on sale of NKTI lots

National Kidney and Transplant Institute

Quezon City, Metro Manila

 

By JUNE S. BLANCO 

QUEZON CITY. – The Lower House is pushing the investigation in aid of legislation the alleged sale of lots reserved for the National Kidney and Transplant Institute (NKTI) by the National Housing Authority (NHA) to the SM Development Corporation.

Introduced by Rep. Erico B. Aumentado (2nd District, Bohol), House Resolution 2930 states that the NKTI has been granted usufructory rights over the lots it now occupies including parking areas and other appurtenances.

Aumentado explained that these rights are vested in Presidential Proclamation 2381 considering that NKTI is a government owned and controlled corporation (GOCC) attached to the Department of Health (DOH). It is the leading kidney and transplant institute in the country. Its operation stands to be jeopardized if its property holding will be diminished by sale.

The Bohol solon said NKTI Medical Director Jose Dante Dator had learned of the impending sale of two areas – once covering 8,402 square meters, and the other, 7,932 sq. m. – only through newspaper ads published by NHA last September. One lot is the institute’s parking area while the other is the subject of a dispute involving alleged illegal settlers.

The resolution stated that there seems to be bad faith on the part of NHA because Dator had said until the publication of the notices of disposition, the NKTI and the NHA had been negotiating for the transfer of the land from the housing agency to the hospital and had agreed on the mode of payment – medical services for NHA workers.

The resolution recognizes the need for the establishment of a business hub as envisioned by the Quezon City government and NHA but such development must be balanced with the requirements of NKTI.

On top of the House probe, the resolution also provided that the House Committee on Government Enterprises and Privatization will also probe the alleged sale and to recommend the appropriate legislations on the issue under consideration.