Tuesday, February 25, 2020

Tuesday, February 25, 2020

SEATCA: Philippines: Senate ratifies new sin tax measure on e-cigarettes, liquor


Southeast Asia Tobacco Control Alliance recently issued the following announcement. 

The Senate ratified on Wednesday (December 18) a bill that will tax electronic cigarettes and impose higher duties on alcohol to raise P22.2 billion on its first year of implementation.

The Senate passed the measure on its last session day in 2019, hours after a bicameral conference reconciled the two chambers’ versions of the bill.

The approved version, which was closer to the P24.7-billion revenue projection in the Senate draft compared to P16 billion in the House bill, was originally supposed to raise P27.4 billion. But this was reduced by P5.2 billion after some prescription drugs were exempted from value-added tax, based on data from Senator Pia Cayetano’s office.

“As a health advocate, I cannot deny that I am not satisfied… As a revenue measure, I had also hoped na sana mas mataas,” said Cayetano, chairman of the Senate tax-writing committee.

“The figures we have are what they are and they will go a long way because nakadagdag tayo at yun ang importante (we will be able to raise more, that’s what’s important),” she said.

The Department of Finance had hoped higher sin taxes would help close a P59.1-billion funding gap for the implementation of the Universal Health Care Law.

The measure, once ratified by the House, will be submitted for President Rodrigo Duterte’s signature for it to become a law.

Under the approved rates, all bottles of wine will be taxed an additional P50 tax, while the following alcoholic beverages will be taxed as follows:

DISTILLED SPIRITS

2020 – P42 + 22 pct ad valorem tax

2021 – P47 + 22 pct ad valorem tax

2022 – P52 + 22 pct ad valorem tax

2023 – P59 + 22 pct ad valorem tax

2024 – P66 + 22 pct ad valorem tax

FERMENTED LIQUOR

2020 – P35

2021 – P37

2022 – P39

2023 – P41

2024 – P43

Electronic cigarettes will be taxed as follows:

HEATED TOBACCO PRODUCTS

2020 – P25

2021 – P27.50

2022 – P30

2023 – P32.50

5 pct indexation thereafter

SALT NICOTINE

2020 – P37

2021 – P42

2022 – P47

2023 – P52

5 pct indexation thereafter

FREE BASE

2020 – P45

2021 – P50

2022 – P55

2023 – P60

5 pct indexation thereafter

Sixty percent of the fund will be allocated for the government’s Universal Health Care program, 20 percent for the improvement of public health facilities, and 20 percent for projects that would help the country meet its sustainable development goals.

Original source can be found here.

Organizations in this Story

Southeast Asia Tobacco Control Alliance

More News

Tobacco News Wire