MANILA - European countries have expressed strong support to a proposal seeking to slap a uniform excise tax on all alcohol and tobacco products, whether imported or locally produced.

In a position paper submitted to the House committee on ways and means, European Commission representative Therese Yosuico said that passage of House Bill 6079, which aims to restructure the excise tax on alcohol and cigarette products, would not only avert a legal battle pending before the World Trade Organization (WTO), but also eliminate the long-standing discrimination against imported spirits.

Yosuico noted that imported alcohol products in the Philippines are taxed 10 to 50 times higher than local ones.

"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.

Meanwhile, European Chamber of Commerce spokesparson Leslie Stokes said the tax restructuring would address rampant smuggling in the Philippines.

"The proposal for a one-rate excise tax for both imported and locally-produced distilled spirits will address compliance with WTO rules and regulations on fair trade. A one-rate excise tax system for all distilled spirit products will also have positive effect on smuggling," he added.

Last month, the 27-member European Union filed a complaint before the WTO over what it said was an unfair excise tax system in the Philippines that violated free trade rules.

Washington has joined the European Union in raising the issue at the WTO.

Amid the complaints, the Finance Department remains hopeful that sin tax amendments would be approved by Congress soon.