DOF wants higher excise taxes on tobacco, alcohol for Universal Healthcare program

The Department of Finance (DOF) is supporting pieces of legislation that seek to impose additional excise taxes on cigarettes and alcohol products.

The additional revenue will eventually fund the government’s Universal Healthcare program.

Finance Assistant Secretary Antonio Lambino II told GMA News Online that the DOF is supporting measures pending in the Congress on further raising sin taxes.

“The idea of it was the additional excise taxes will pay for the Department of Health’s Universal Healthcare,” Lambino said.

Senator Manny Pacquiao proposed to double the excise tax on cigarettes to P60 per pack, which is currently taxed at P35, according to Lambino.

Senator JV Ejercito is proposing to raise the excise tax on cigarettes to P90 per pack.

“On alcohol, there is House Bill 4839 filed by Rep. Sharon Garin. It proposes to increase excise tax depending on the alcohol content and type of beverage,” the Finance official said.

Under Garin’s proposal, distilled spirits will have an ad valorem tax of 25 percent and a specific tax per proof liter of P30, which will rise progressively by 5 percent each year.

Currently, distilled spirits carry an ad valorem tax of 20 percent based on net retail price.

“Ang mako-collect natin na excise taxes ilalagay ‘yan sa Universal Healthcare,” Finance Assistant Secretary Paola Alvarez said on the sidelines of a press briefing in Malacañang.

Alvarez, however, said increases in excise taxes should be implemented gradually.

“Hindi pwede na tataasan agad-agad, kasi kapag tinaas mo agad-agad mawawala na ‘yung bumibili. So hindi mo rin makukuha ‘yung dagdag na revenue para pondohan ‘yung Universal Healthcare,” she said.

Alvarez noted the health benefits of higher excise taxes on sin products.

“Simula nung naglalagay tayo ng additional taxes, ‘yung mga kabataan na nagta-try bumaba kasi ‘di na nila ma-afford,” she said.

“‘Yung mga nagkokonsumo ng mga bagay na hindi maganda sa kalusugan ita-tax mo siya para mabawasan ang pagkonsumo,” Alvarez noted.

Likewise, Senator JV Ejercito is proposing to raise the excise tax on cigarettes to P90 per pack.

Philip Moris Fortune Tobacco Corp. communications manager Didet Danguilan declined to comment on the matter as the company has yet to see a copy of the proposed measures.

President Rodrigo Duterte certified as urgent the bill seeking to provide universal heathcare coverage for Filipinos.

The House passed its version of the bill in September last year while a counterpart bill is pending in the Senate.

Under the House version, every Filipino will be automatically included in the National Health Security Program, which entitles them to all its benefits, including in-0patient, out-patient and emergency care services encompassing preventive, promotive, curative, rehabilitative and palliative care for medical, dental and mental health services. —VDS, GMA News