Duterte approves higher excise tax for tobacco products

MANILA, Philippines – President Rodrigo Duterte signed into law the bill raising excise tax for tobacco products, a measure he certified as urgent last May.

"To address the urgent need to protect the right to health of the Filipino people and to maintain a broader fiscal space to support the implementation of the Universal Health Care Act, the President has signed into law HB (House Bill) No. 8677 or SB (Senate Bill) No. 2233 increasing the excise tax on tobacco products," said Executive Secretary Salvador Medialdea on Thursday, July 25.

The law, Republic Act No. 11346, raises cigarette tax from the current P35 to P45 for the first year of implementation. This will be followed by 5-peso increases every year until the rate reaches P60 in 2023.

Starting 2024, a 5% increase would be imposed annually.

Here is the schedule:

For heated tobacco and vapor products, the following schedule will be implemented:

The measure is expected to generate P15 billion in revenue in 2020 and P140 billion until 2023. – Rappler.com

Pia Ranada

Pia Ranada covers the Office of the President and Bangsamoro regional issues for Rappler. While helping out with desk duties, she also watches the environment sector and the local government of Quezon City. For tips or story suggestions, you can reach her at pia.ranada@rappler.com.