Duterte enacts measure on higher tobacco taxes

President Rodrigo Duterte has signed into law the measure increasing the excise tax on tobacco products, Malacañang said Thursday.

Executive Secretary Salvador Medialdea said Duterte enacted the proposed measure “to address the urgent need to protect the right to health of the Filipino people and to maintain a broader fiscal space to support the implementation of the Universal Health Care Act.”

The new law imposes an excise tax increase of P45 to P60 per pack beginning next year until 2023, and 5% yearly increase starting January 1, 2024.

The measure is expected to fill the funding gap in implementing of the Universal Health Care law, which stands at P63 billion in 2020.

The Senate said the inclusion of heated tobacco products and vapor products will bring in an additional P2.1 billion to the projected yearly revenues of around P15 billion.

The measure also slaps stiffer penalties against illicit tobacco trade and allots the incremental tobacco excise tax to human resource development programs for health professionals and programs aimed at combating smuggling and other illicit trade.

In a separate message to reporters, Finance Assistant Secretary Antonio Lambino noted the newly enacted measure is Republic Act. No. 11346.

The title of the law is, “An Act Increasing the excise tax on tobacco products, imposing excise tax on heated tobacco products and vapor products, increasing the penalties for violations of provisions on articles subject to excise tax, and earmarking a portion of the total excise tax collection from sugar-sweetened beverages, alcohol, tobacco, heated, tobacco and vapor products for Universal Health Care, amending for this purpose Sections 144, 145, 146, 147, 152, 164, 260, 262, 263, 265, 288, and 289, repealing Section 288 (B) AND 288 (C), and creating new Sections 263-A, 265-B, AND 288-A of the National Internal Revenue Code of 1997, as amended by Republic Act. No. 10963, and for other purposes.” —VDS, GMA News