Metro Manila (CNN Philippines, November 12)— President Rodrigo Duterte certified a measure increasing excise taxes for alcohol and tobacco products as urgent.
In a letter addressed to Senate President Vicente “Tito” Sotto III on Tuesday, Duterte called for the immediate enactment of Senate Bill No. 1074, in hopes of raising additional revenues for the government’s Universal Healthcare (UHC) program.
The proposed measure aims to 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 ₱45 per liter on the first year of implementation—which will increase by ₱10 every year until the fourth year. The specific tax rate will increase by 10 percent every year thereafter.
The bill also proposes to increase e-cigarettes (under the heat-not-burn product category) rates from ₱10 per pack to ₱45 per pack on the first year.
Wine products will also be slapped with a specific tax of ₱600 per liter for sparkling, and ₱43 per liter for still and carbonated wines.
Lawmakers have previously expressed a possible “win-win situation” with the bill’s passage— as it seeks to “curb” vices while supporting the nationwide health program. The measure, in particular, aims to raise ₱47.9 billion in additional revenues for the UHC program.
A counterpart version of the measure was approved in the House of Representatives in August.
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— CNN Philippines (@cnnphilippines) November 12, 2019
