Office of Rep. Victor F.

Ortega 1st District, La Union

Mobile Phone: +63917-3050604 15 March 2012

PRESS STATEMENT In light of reports that Gov. Chavit Singson has thrown his support behind the proposed Abaya Bill, members of the Northern Luzon Alliance (NLA) lawmakers last night met with the Governor, to clarify his stand and discuss their collective position regarding the proposed bill It will be recalled that the Abaya Bill seeks to restructure the existing four-tiered excise tax system into a single tier system that will levy a P30 tax per pack on all tobacco products within three years of implementation. While members of the NLA recognize the need to increase excise tax rates on tobacco products, they believe that any adjustments made must be moderate and within reasonable range. Congressman Victor Ortega expressed concern that implementing excessive increase in tax rates may result in the demise of the countrys tobacco industry. The NLA and Governor Singson are one in saying that while there is a need to increase taxes, any changes in the current excise tax system should reflect a sound balance between the governments need for increased revenues and the need to protect local industries and other stakeholders. #