EU seeks same taxes for imported, local alcohol
09/14/2009 | 06:18 PM
European nations expressed support for a proposal that will impose a one-rate excise tax on both locally-produced and foreign-made alcohol and tobacco products.
Besides averting a legal battle already pending at the World Trade Organization (WTO), the proposal is also expected to rectify the bias against imported spirits, a European Commission representative said.
Restructuring the Philippines’ alcohol and tobacco excise taxes would also help curb smuggling, European Commission representative Therese Yosuico said in a position paper submitted to the House Committee on Ways and Means.
If passed, House Bill 6079 would help address the current discrimination against imported liquor and tobacco products, Yosuico added.
Under Republic Act 9334, importers of alcohol and tobacco produced abroad pay anywhere from ten to 50 times more taxes than local spirits.
“The adoption of HB 6079 would help address the legitimate concerns of the European Union spirits industry and would prevent litigation before a panel," she stressed.
Last month, the European Union called for the WTO’s dispute settlement procedures, asserting that the Philippines’ excise tax regime works against imported alcohol products.
This much was also said by Leslie Stokes, the spokesperson of the European Chamber of Commerce.
A one-rate excise tax for both imported and local alcohol and tobacco items is expected to address compliance with WTO rules and fair trade regulations.
“A one-rate excise tax system for all distilled spirit products will also have positive effect on smuggling," Stokes said, adding that half of all imported spirits are smuggled.
In the meantime, the Spanish Embassy said that Spain strongly supports the position of the European Commission and the European Chamber of Commerce regarding the issue. - GMANews.TV
Besides averting a legal battle already pending at the World Trade Organization (WTO), the proposal is also expected to rectify the bias against imported spirits, a European Commission representative said.
Restructuring the Philippines’ alcohol and tobacco excise taxes would also help curb smuggling, European Commission representative Therese Yosuico said in a position paper submitted to the House Committee on Ways and Means.
If passed, House Bill 6079 would help address the current discrimination against imported liquor and tobacco products, Yosuico added.
Under Republic Act 9334, importers of alcohol and tobacco produced abroad pay anywhere from ten to 50 times more taxes than local spirits.
“The adoption of HB 6079 would help address the legitimate concerns of the European Union spirits industry and would prevent litigation before a panel," she stressed.
Last month, the European Union called for the WTO’s dispute settlement procedures, asserting that the Philippines’ excise tax regime works against imported alcohol products.
This much was also said by Leslie Stokes, the spokesperson of the European Chamber of Commerce.
A one-rate excise tax for both imported and local alcohol and tobacco items is expected to address compliance with WTO rules and fair trade regulations.
“A one-rate excise tax system for all distilled spirit products will also have positive effect on smuggling," Stokes said, adding that half of all imported spirits are smuggled.
In the meantime, the Spanish Embassy said that Spain strongly supports the position of the European Commission and the European Chamber of Commerce regarding the issue. - GMANews.TV
