TINIAN residents testified against the proposal to increase the tobacco tax.
During the Senate Fiscal Affairs Committee’s public hearing on Tinian last week, several members of the community commented on Rep. Tina Sablan’s House Bill 22-54.
The measure, which was passed by the House in June 2021, would raise to $4 from $3.75 the excise tax per 20 cigarettes, and impose a 75% levy on vaporizers that contain nicotine.
The Senate committee had already conducted a public hearing on Rota, and is planning to hold another public hearing on Saipan.
At the public hearing on Tinian, Sen. Frank Q. Cruz said it was very important that they allow members of the public to comment on the bill.
Sen. Karl King Nabors, for his part, said he supports preventive health measures, but he believes “there are other approaches that we can take if we are really interested in fixing the problem.”
He understands that H.B. 22-54 “is trying to make money,” but “there are loopholes.”
He said people can always find other lower priced unhealthy items.
In his testimony, former Sen. Jose Dela Cruz said the tax hike’s timing “is not right.” He said he appreciates the proponents’ concerns regarding public health, but he also wants to see data showing how tax hikes deter people from using tobacco.
He noted that the Legislature had previously raised the tobacco tax.
He also said that the prices of most commodities in the CNMI are very high. Life is hard right now, Dela Cruz said, “especially on this remote island…. So I feel that this is not the right time” for a tax hike.
Another Tinian resident, Guillermina Cepeda, said she doesn’t smoke, but she opposes the bill because it would affect the financial condition of many people on island.
She said her aunt who smokes told her the bill would “impact” her finances.
Tinian Commerce Resident Director Susan Perez said as a businessperson, she opposes the bill because when people stop buying tobacco “what’s going to happen to the business? They will not have income.”
Also testifying against the bill was David Evangelista.
Sen. Victor B. Hocog, who chairs the Senate Fiscal Affairs Committee, said it will also be helpful if anyone can provide an alternative revenue-generating idea.
