Metro Manila (CNN Philippines, December 17) — The Senate on Monday approved the bill that imposes higher excise tax on alcohol and tobacco products.
Twenty senators voted to approve the bill on final reading. There was no opposition to the proposed measure.
A counterpart version of the bill was approved in the House of Representatives in August.
President Rodrigo Duterte in November certified as urgent the measure to hike sin taxes. In a letter addressed to Senate President Vicente “Tito” Sotto III, Duterte called for the immediate enactment of Senate Bill No. 1074, which aims to raise additional revenues for the government’s Universal Healthcare (UHC) program.
The proposed measure will hike the excise taxes on alcohol, heated tobacco, and vapor products including electronic cigarettes.
Under the bill, fermented liquor (beer) and alcopops will face a specific tax rate of P45 per liter on the first year of implementation—which will increase by P10 every year until the fourth year. The specific tax rate will increase by 10 percent every year thereafter.
The bill also proposed to increase e-cigarettes (under the heat-not-burn product category) rates from P10 per pack to P45 per pack on the first year.
Wine products will also be slapped with a tax of P600 per liter for sparkling and P43 per liter for still and carbonated wines.
Lawmakers have previously expressed a possible “win-win situation” with the bill’s passage— as they seek to curb vices while supporting the nationwide health program. The measure, in particular, aims to raise P47.9 billion in additional revenues for the UHC program.
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