Senate panel OKs bill increasing cigarettes, alcohol taxes

Aika Rey
If passed, the new set of taxes for alcohol and cigarette products will yield P40 billion to P50 billion in revenues

HIGHER TAXES. Senator Pia Cayetano introduces to the plenary Senate Bill No. 1074 seeking to increase alcohol and cigarette taxes. Photo by Angie de Silva/Rappler

MANILA, Philippines – The Senate ways and means committee has approved a measure increasing taxes on alcohol and cigarettes.

On Wednesday, September 25, Senator Pia Cayetano, chair of the committee, introduced to the plenary Committee Report No. 6 with Senate Bill (SB) No. 1074, in a bid to “curb vices” and increase funding for the Universal Health Care law.

SB 1074 consolidated Senator Manny Pacquiao’s SB 383 and SB 987. The consolidated bill seeks to amend the National Internal Revenue Code of 1997 and introduce new taxation on the following items:

{source}<h3>Alcohol</h3>{/source}

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After 2023, SB 1074 proposes a 10% increase in taxes every year for the said alcohol products, effective January 1.

{source}<h3>Cigarettes</h3>{/source}

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After 2023, the bill proposes a tax increase of 5% every year for cigarettes and 10% for alcohol products, effective January 1.


Committee Report No. 6 was signed by the following senators:

  • Pia Cayetano
  • Sonny Angara
  • Christopher “Bong” Go
  • Panfilo Lacson
  • Sherwin Gatchalian – will interpellate
  • Lito Lapid
  • Ronald “Bato” dela Rosa
  • Manny Pacquiao – will interpellate and propose amendments
  • Grace Poe – will propose amendments
  • Ramon “Bong” Revilla Jr
  • Imee Marcos – with reservations on electronic tobacco products and other provisions
  • Francis Pangilinan
  • Risa Hontiveros – will interpellate and propose amendments
  • Senate Minority Leader Franklin Drilon – with reservations, will interpellate and propose amendmenets
  • Senate Majority Leader Juan Miguel Zubiri
  • Senate President Pro-Tempore Ralph Rector – may amend

The proposed measure will have to undergo a period of debates and amendments in the upper chamber.

Cayetano said that the measure will bring about P40 billion to P50 billion in incremental revenues if passed.

Earlier on Wednesday, Drilon proposed privatizing the games under the Philippine Amusement and Gaming Corporation and the Philippine Charity Sweepstakes Office to earn more revenues.

At the House of Representatives, the counterpart measure already passed 3rd and final reading. – Rappler.com

Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.