Senators held off action on a House bill increasing cigarette tax from $2 to $4 a pack, after the Senate Fiscal Affairs Committee decided to further review the measure to strengthen its enforcement provisions. Moreover, the Senate panel recommends that instead of an outright $2 increase, it would be done gradually\u2014$1 increase for two years after March 31, 2014, and another $1 hike thereafter to reach the $4 a pack cigarette tax.<\/p>\n
\u201cWhat good is increasing taxes if there is no proper enforcement of provisions in place?\u201d Sen. Paul Manglona (Ind-Rota), a member of the Fiscal Affairs Committee, told Saipan Tribune yesterday.<\/p>\n
Manglona asked the committee to further review and amend the bill, before bringing it to the floor for a vote.<\/p>\n
The Senate committee will work on the enforcement provisions with the help of the Department of Commerce\u2019s Alcoholic Beverages and Tobacco Control Division, Manglona said.<\/p>\n
Prior to the Senate session last week, the Fiscal Affairs Committee chaired by Sen. Jovita Taimanao (Ind-Rota) was already ready with its committee report.<\/p>\n
The committee recommends amending House Bill 18-118, authored by House floor leader Ralph Demapan (Cov-Saipan), to make the $2 cigarette tax increase a gradual one.<\/p>\n
\u201cYour committee recommends that the cigarette tax shall be increased by $1 for a total of $3 per pack for two years after March 31, 2014. Thereafter, the cigarette tax shall be increased by another $1 for total of $4 per pack,\u201d the committee said in its three-page report.<\/p>\n
Of the eight members of the Fiscal Affairs Committee, six signed off on the report.<\/p>\n
The committee acknowledges the increase in non-communicable diseases in the CNMI, and its negative impacts.<\/p>\n
The panel notes public comments that the original bill\u2019s intent of increasing cigarette tax by $2 is \u201cexcessive and that it could potentially hurt businesses.\u201d<\/p>\n
Others said imposing steep cigarette tax would force many to resort to buying illegal or smuggled cigarettes, which would have lower prices.<\/p>\n
The Senate Fiscal Affairs Committee said it still strongly believes that the promotion of healthy living in the CNMI outweighs the costs of raising cigarette taxes.<\/p>\n
\u201cYour committee, however, finds that a gradual increase in the cigarette tax achieves the intent of the bill while making the tax increase more palatable to the business community,\u201d the report said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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