Tax hike moves forward

The Philippine senate has approved a proposal to increase the excise taxes on tobacco products, a measure President Rodigro Duterte characterized as urgent, reports PhilStar.

Passed with a vote of 20-0, Senate Bill 2233 seeks to increase the excise tax on cigarettes by PHP45 ($0.87) per pack effective Jan. 1, 2020; PHP50 per pack in January 2021; PHP55 per pack in January 2022 and PHP60 per pack effective Jan. 1, 2023.

If signed into law, it would be the eighth time tobacco taxes were adjusted since 2012.

Prior to its approval, several senators made amendments to the bill, including expanding the tax coverage to include heated tobacco products and vapor products. The bill also mandates the placement of text and graphic warnings on the heated tobacco and vapor products. Proceeds from the new taxes will mostly go to funding the Universal Health Care law.

Philippine World Health Organization representative Gundo Weiler said there was no rational argument for keeping the prices of cigarettes low. He said raising taxes to PHP60 per pack would save 460,000 lives annually.