A DEPARTMENT of Finance-backed excise tax measure has drawn flak from both local industry players and thousands of workers who claim that the proposed tax hike on tobacco and alcohol products is designed to kill local industries and cause massive job losses.

During the ways and means committee hearing yesterday, local players from the distilled spirits industry said the DoF is practically “shooting its foot” by pushing House Bill No. 5727 filed by Cavite Rep. Joseph Emilio A. Abaya.

Olivia Limpe-Aw, president of the Distilled Spirits Association of the Philippines, Inc. (DSAP), said DoF’s plan to collect more than P62 billion revenues through Abaya’s bill is unrealistic as it will give relief to imported brands while taxing out of the market local products from which the agency intends to mainly collect.

Outside the Batasan, close to 1,000 placard-bearing workers from the tobacco and alcohol industries took turns lambasting DoF and the Bureau of Internal Revenue for being insensitive to the plight of workers who will be displaced by the proposed tax hike.

Limpe-Aw explained that Abaya’s HB 5727 is regressive as it intends to penalize local brands with more than 1,000 percent increase in tax on the third year, while imported brands will enjoy more than 1,500 percent decrease.

She said by the third year, the measure will slap local distilled spirits with an excise tax of P150 per proof liter or more than 10 times the current P14.68. On the other hand, imported premium brands will be gifted with a tax break and only need to pay P42.00 per proof liter or more than 15 times less than the current P634.90.

”It’s difficult to comprehend why government is pushing for a measure that could potentially kill local industries while favoring imported brands. This move will also negatively affect the entire local economy,” Limpe-Aw lamented.