ASH lauds Duterte tax rise on Alcohol and E-cigarettes
30 Jan 2020
Action on Smoking and Health Philippines Executive Director and National Secretary of Philippine College of Physicians Dr. Maria Encarnita B. Limpin lauded President Duterte for approving and signing into law increased taxes on alcohol, heated tobacco products, and vapor products.
“We highly appreciate and commend President Duterte for recognizing the threats of alcohol, e-cigarettes, and heated tobacco products pose to the health of the Filipinos and for taking swift action to counter these health risks. The newly passed tax law on these products is a huge step forward that is meant to protect the Filipinos, especially the poor, from deaths and diseases caused by these harmful products,” said Limpin.
Under the law, the new rates for distilled spirits will be increased to P42 per proof liter this year, P47 per proof liter by next year, P52 per proof liter by 2022, P59 per proof liter by 2023, and P66 per proof liter by 2024.
Fermented liquor such as beer, P35 specific tax rate per liter will be imposed this year which will subsequently be increased by P2 per year until 2024.
Wine products, meanwhile, will have a P50 specific tax rate per liter starting this year and will increase by 6 percent every year starting 2021.
As for the e-cigarettes, every pack of heated tobacco products will have a P25 specific tax rate in 2020, P27.50 in 2021, P30 in 2022, and P32.50 in 2023, with a 5 percent indexation thereafter.
Salt nicotine products will have a P37 specific tax rate imposed by this year per 10 milliliters, P50 in 2021, P55 in 2022, P60 in 2023. Thereafter, a 5 percent indexation will be applied.
Excise taxes on conventional/freebase nicotine meanwhile are set at P45 per pack this year, P50 per pack by 2021, P55 per pack by 2022, and P60 per pack by 2023 with a 5 percent indexation thereafter.
The Department of Finance projected approximately P22.2 Billion would be generated in incremental revenue which would be used to help augment funding for the Universal Healthcare (UHC) Law.
“Since the introduction of the sin tax law we have seen gradual decline in the numbers of smokers. This reform is a big win for the Filipino people as sin tax has been proven to be an effective tool in discouraging consumption of these harmful products. But despite this triumph, we are still going fight for higher tax rates over the coming years to reduce affordability of those products and further protect them poor and the young from deaths & diseases caused by alcohol and vaping products,” said Limpin.
The rate of the excise tax for distilled spirits and fermented liquor will increase by 6 percent every year starting 2025.