STC welcomes signing into law of higher taxes on alcohol, e-cigarettes

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MANILA, Philippines — Sin Tax Coalition has welcomed the  signing into law of higher taxes on alcohol, e-cigarettes, and vape.

In a statement made Thursday, health advocates from the Sin Tax Coalition welcomed the news that President Rodrigo Duterte had signed into law the measure to increase excise taxes on alcoholic beverages, heated tobacco products (HTPs), and vapor products. 

“On behalf of the health advocates, we thank President Rodrigo Duterte for signing this important health measure into law. It is a known fact that sin taxes are an effective tool in discouraging the consumption of harmful products such as alcohol and tobacco, and this latest tax increase will prove to be another step forward in protecting more Filipinos from the diseases caused by these products,” stated the coalition’s co-convener Dr. Anthony Leachon.

Leachon also thanked both Albay 2nd District Representative Joey Salceda and Senator Pia Cayetano, who shepherded the passage of the measure as chairpersons of the Committee on Ways and Means in both the House of Representatives and the Senate.

“Throughout this process, both Congressman Salceda and Senator Cayetano have proven themselves to be lawmakers who genuinely care about the health of the Filipino people. As such, we would like to thank them for being the main proponents of this measure in the House and the Senate,” Leachon said.

For alcoholic beverages, the excise tax on distilled spirits will be increased from P 23.5 to P 42 per proof liter with a 22 percent ad valorem tax beginning next year.

The specific tax will then be raised to P 47 in 2021, P 52 in 2022, P 59 in 2023, P 66 in 2024, and by 6 percent every year thereafter.

Meanwhile, the tax on fermented liquors will be raised from P 25.4 to P 35 beginning next year. The tax will then be increased to P 37 in 2021, P 39 in 2022, P 41 in 2023, P 43 in 2024, and by 6 percent in each succeeding year.

Finally, a specific tax of P 50 would be imposed all wines beginning 2020, with annual increases of 6 percent every year thereafter.

For HTPs, the tax would be increased to P 25 in 2021, P 27.50 in 2022, P 30 in 2023, P 32.50 in 2024, and by 5 percent every year thereafter.

For freebase nicotine vape, the tax will be increased to P 45 in 2021, P 50 in 2022, P 55 in 2023, P 60 in 2024, with 5 percent annual increases in each succeeding year, while the salt-based nicotine vape will be taxed slightly lower at P 37 in 2021, P 42 in 2022, P 47 in 2023, and P 52 in 2024, with 5 percent annual increases from 2025 onwards.

Leachon also noted that the revenue generated from the sin tax increase will also help augment the funding for the Universal Health Care (UHC) Law’s implementation. (Tracy Ang/IAMIGO/Currentph.com)

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