Senate Committee on Ways and Means Rejects Tobacco Tax Rollback Provision in House Bill 11360

Strategic Insights -

The Senate Committee on Ways and Means, led by Senator Sherwin Gatchalian, has decided not to tackle the tobacco tax rollback provision in House Bill 11360. Gatchalian argued that lowering taxes will not curb illicit trade, and instead emphasized the need for stronger enforcement. The committee has already conducted three hearings on the measure, with specific recommendations aimed at curbing illicit trade, and Gatchalian assured health and fiscal advocates that the committee will not endorse any reduction in tobacco excise tax rates.

Key Takeaways:

  • Senator Sherwin Gatchalian has led the Senate Committee on Ways and Means to reject the tobacco tax rollback provision in House Bill 11360.
  • The provision would have lowered taxes on tobacco products, which is a major concern for public health advocates.
  • Gatchalian emphasized that stronger enforcement, not tax reduction, is the key to curbing illicit trade.
  • The committee has conducted three hearings on the measure, with specific recommendations aimed at curbing illicit trade.
  • Healthcare groups have warned that the tobacco tax rollback provision could be used to justify lowering cigarette taxes in the bicameral committee.
  • Gatchalian has assured health and fiscal advocates that the committee will not endorse any reduction in tobacco excise tax rates.
  • The Sin Tax Coalition had urged Senator Gatchalian to reject the entire bill, citing concerns over the move to set a hearing despite the Senate being in recess.
  • Gatchalian is interested only in the bill's provisions on vape products tax rates.

Statistics:

  • 3 hearings have been conducted by the Senate Committee on Ways and Means on House Bill 11360.
  • The Senate has 2 weeks before adjourning to give way to the 20th Senate.
  • HB 11360 was railroaded in the House in January.

Sources:

  • Predictably, Senate committee head Sherwin Gatchalian on Friday said ... (no date provided)
  • Senator Sherwin Gatchalian emphasized that ... (no date provided)
  • Last May 19, as he opened the fourth hearing on the House bill, Gatchalian assured health and fiscal advocates that his committee will not endorse any reduction in tobacco excise tax rates, because it is not the solution to curbing illicit trade of tobacco. (Source: no specific article or publication provided, but referenced in the narrative summary)