MANILA – President Rodrigo Duterte signed into law a measure which raises sin tax on tobacco products and imposes excise tax on heated tobacco and vapor products.
Executive Secretary Salvador Medialdea on Thursday said Duterte signed the tobacco tax hike bill, which he earlier certified as urgent.
Under Republic Act 11346, there were increases in penalties for violations of provisions on articles subject to excise tax, and earmarks a portion of the total excise tax collection from sugar-sweetened beverages, alcohol, tobacco, heated tobacco and vapor products for Universal Health Care law.
“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 President has signed into law House Bill No. 8677/ Senate Bill No. 2233 Increasing the Excise Tax on Tobacco Products,” Medialdea said.
The signed law increases the rates of the tobacco excise from P35 to P45 per pack up to P60 in 2023 and adding a tax on heated tobacco products and e-cigarettes.
Fifty-percent of collected taxes from tobacco, heated cigarette, e-cigarette, sweetened beverage and alcohol will go to the Universal Health Care program.
The Department of Health recently said tobacco tax hike bill will save the lives of 200,000 Filipinos from the ill effects of smoking.
It aims to decrease smoking prevalence to 20-percent by 2023./PN
