Metro Manila (CNN Philippines, January 8) — President Rodrigo Duterte will certify as urgent measures increasing excise taxes on alcohol and tobacco products, Malacañang said Tuesday.
Duterte approved the proposal backed by the Department of Health (DOH) and the Department of Finance (DOF) during the 33rd Cabinet meeting on Monday, Presidential Spokesperson Salvador Panelo said in a statement.
“This is a key public health measure to reduce deaths and disabilities due to tobacco and alcohol consumption and, at the same time, a revenue measure to fund the universal health care program,” Panelo said.
The DOF earlier backed Senator Manny Pacquiao’s bill raising excise taxes on tobacco products to P60 from the current ₱35 per pack of cigarettes, and increasing the rate further by 9 percent annually. Pacquiao’s bill proposes higher rates compared to bills in the House.
Panelo said the proposal by the DOF and DOH also seeks to raise taxes on alcohol to 40 per liter.
In a press briefing Tuesday, the President’s spokesman clarified the measure would amend existing excise tax increases for tobacco and alcohol under the Tax Reform Acceleration and Inclusion (TRAIN) law.
“The recommendation is that that bill should be passed and signed into law. That was what was approved last night,” Panelo said.
In December 2018, the House of Representatives approved a bill raising the current tax of ₱35 per pack of cigarettes to ₱37.50 beginning July 2019. The bill also calls for another increase to ₱40 in July 2020, ₱42.50 in July 2021, and ₱45 in July 2022.
Thereafter, the rate shall be raised to four percent every July annually, the House bill states.
A separate House bill, imposes a 22-percent tax rate on retail price per proof of distilled spirits, such as brandy and whisky, as well as a specific tax of ₱30 per liter.
The specific tax will go up by ₱5 yearly until it reaches ₱45 per liter in 2022.
