Senate President Juan Ponce Enrile questioned the corporate briefing last week that the proposed “sin tax” bill pending in Congress today will be as it is. He also expressed the view that the tax increase to the level proposed would have a negative impact on local tobacco farmers, especially in the northern part of the island of Luzon, where he.
The Senate President is not against raising taxes on its own, and I think he understands the health consequences because of smoking. But he was more concerned about the economic consequences of abrupt change. There are too many of our fellow citizens, whose life is connected with the cultivation of tobacco,. JPE said
Today there are about three million Filipinos who are either working or dependent on tobacco farming and manufacturing, as well as tobacco wholesalers and retailers. There were 2.7 million in 2009.
JPE did not say as such, but I guess that JPE is reasonable enough to go along with the national program to reduce smoking, if such a plan takes care of the tobacco farmers too. He just does not want to leave them high and dry.
The first study cited is to increase revenue. The second related to health. The third combination of both: smokers should pay for the social costs of their health needs associated with the habit.
All these arguments are good and deserve our support. Farmers can not be collateral damage. Yes, there is mention of the Department of Agriculture helps tobacco farmers switch to other crops. But it seemed just as after thoughts. No details are given.
In addition, tobacco farmers can not really want to go to the cultures that are not as profitable as tobacco. There was a time, Business Mirror report said that local farmers producing tobacco savory and unusual variety of tobacco that most cigarette manufacturers began rejecting in 2003.
Due to the low quality of local tobacco, many people thought that this is a “sunset industry”, as production fell. But there was a time when the Philippines was a major exporter of tobacco Burley and Virginia. With producers as local companies Philip Morris, our tobacco farmer’s once again growing world class tobacco that command high prices paid.
According to the report, Business Mirror, Philip Morris created schools for farmers where agronomy experts taught and continue to teach the correct way to local farmers grow tobacco and how they can improve the quality and optimize production.
National Tobacco Administration (NTA), the public agency, in conjunction with Philip Morris in the implementation of market quality tobacco production program.
Best of all, farmers are given a ready market in tobacco contract growing system, where Philip Morris immediately tightens 3000 farmers and provide them with permanent jobs. It also provides on-site assistance and interest-free loans as well.
This is what the government should be the same, if its purpose is to prevent the cultivation of tobacco and reduce the number of smokers in the country. I have not heard, our government is to be as effective as Philip Morris to provide such generous support to farmers of other crops, including rice, our staple. Not surprisingly, tobacco farmers do not want to plant other crops.
In addition, business Mirror also notes that local tobacco was also exported.
So, what do we have for these farmers in exchange for their waiver of Culture? I see the logic of the latest statements from the World Health Organization, requests the Government to restrict the cultivation of tobacco. But in the real world, it’s not so easy if you take people and their livelihoods into account.
I believe that the tobacco industry around the world knows that his days are numbered. Governments around the world have introduced measures to discourage smoking and the use of taxation is only one of the tools for this. There are restrictions on advertising and other forms of marketing communications. There is even a requirement to print scary pictures of diseased lungs and other body parts on a pack of cigarettes.
At the time, I do not smoke; I can not wait for the day when the world would be free from cigarette smoke, which causes breathing problems. Interestingly, I was told that Chris Nelson, local Philip Morris Top Gun is also a smoker. But the process of change takes an awfully long time to materialize, especially for use as smoking cigarettes.
We are dealing with the economic and social factors such as what to do with tobacco farmers. Perhaps, the current account may request the Department of Agriculture to set programs to help tobacco farmers switch to other crops. This program should be in accordance with what Philip Morris is currently doing, if it is to be accurate at all. Otherwise, this “sin tax” proposal will be recitation of good intentions.
As usual, it was all bull and delighted by the great reviews from analysts and bankers. But why is the level of foreign direct investment still leaves much to be desired?
DTI Secretary Greg Domingo said: “We have seen 320 foreign investment missions. We have seen so many investments missions’- more than in the first six months of 2012 than all of 2011. Philippine growth story is very strong.” If this is true, then why do we can not seem to convert all that interest in real investment?
I think the reason why there is some hesitancy to foreign investors is our lingering bad reputation. Pesa’s Lilia de Lima, the right to claim the difference rumors of corruption and really experience it.
The late DILG Sec. Jesse Robredo has done a lot to reduce the bureaucracy and corruption in local government. With his death, the question arises; his program will have the same interest and positive results.
Another problem is the implementation of the snail pace of our infrastructure projects. Transport Deputy Rene Limcaoco said mouth at airports, but when you add the fact that he said it was not clear how many of these projects actually broke ground.
Timmy is telling the truth that “the first stage of our development program is off the gate. We have started re-development of six airports in high-growth areas of tourism, such as the Puerto Princesa, Mactan, Laguindingan, etc. have been bided, under design, or submitted to NEDA. “But it would be interesting to see the time line expected completion date.
And please do not forget about the status of the NAIA 1 make more, and when the NAIA 3 will be finally fixed so that it can be fully operational by the time of P-Noy delivers his SONA next year. It is also important to note explaining Cosette Canilao PPP Center, which, when they say that the projects have been rolled out, it does not necessarily mean that they have been awarded yet.
In other words, it is important for the administration to begin deliveries of completed projects, or at least show a good number of them in various stages of construction. Otherwise, the private sector business will just continue to provide cheap praise, but it is unlikely to put their money down.
It was also interesting that Rappler’s veteran business reporter Lala Rimando in her tweet from the briefing noted that “the last time there was a briefing business leader, including here at the PICC, the summit hall was packed. At this time, there are more available places. “Not a very good sign. Entrepreneurs are getting tired of hearing the same old thing and credibility is starting to merge in the absence of tangible results.