Senate approves higher taxes on cigarettes on final reading

Voting 20-0, the Senate approved on third and final reading Monday night the bill increasing excise tax on cigarettes.

Senate Bill 2233 proposes an increase of P45 to P60 per pack in excise tax beginning next year to 2023 and then 5% yearly hike effective January 1, 2024.

The scheduled increase would be as follows: P45 per pack increase effective Jan. 1, 2020 until Dec. 31, 2021, P50 in Jan. 2021, P55 per pack in Jan. 2022 and P60 per pack effective Jan. 1, 2023.

The Department of Finance said the measure will help fill in the P40 billion funding gap for the implementation of the Universal Health Care law.

Anti-smoking and health advocates have been pushing for much higher excise tax to curb the prevalence of smoking and significantly reduce tobacco-related deaths in the country.

They said the smoking prevalence in the Philippines remains relatively high at 23 percent compared to other countries with successful tobacco control initiatives.

Since President Rodrigo Duterte has certified the bill as urgent, the Senate approved it on third and final reading immediately after passing it on second reading.

The chamber usually needs to wait for three days after the second reading before the third reading approval.

If ever the House of Representatives will adopt the Senate version, the bill need not go the bicameral conference committee and will be sent to the Malacañang for the President’s signature.

The 17th Congress is set to adjourn on June 4 as June 5 is a holiday. The 18th Congress will start on July 22. —NB, GMA News