Arroyo to sign Bill on taxes from 'sin' products

The president will sign into law crucial measures that allow collection of taxes from "sin" products such as alcohol, tobacco and cigarettes.

President Gloria Arroyo's spokesman Ignacio Bunye said the bicameral committee of the Senate and the House of Representatives is making final alterations to the sin tax Bill before it is approved into a law.

The Senate, on Thursday, ratified its version of the proposal with a vote of 17 to 2. The House of Representatives ratified the Bill in an overnight marathon session on Wednesday.

The sin tax Bill is the first one enacted by Congress among eight tax measures introduced by the Arroyo administration.

The government expects to raise excise duties on alcohol and tobacco products and bring in an estimated additional revenue of $136 million (Dh499 million) annually and partly bridge the gap in the country's yawning budget deficit.

The slow pace of implementing fiscal reform measures introduced by the Arroyo administration has been cited by international agencies in their threats to downgrade the country's credit rating, which could mean higher costs of borrowing in foreign financial markets.

"Now it's very clear that we can pass a measure [in so short a time] and we intend to pass more," Senate finance committee chairman Manuel Villar said

Bunye said the congressional action "brightens the outlook on our fiscal position".