PRESIDENT Rodrigo Duterte has approved the Department of Health (DOH) proposal to raise excise taxes on tobacco and alcohol, or the so-called sin taxes, Malacañang announced on Tuesday, January 8.
Duterte gave his approval during the 33rd Cabinet meeting held at Malacañan Palace on Monday, January 7, Presidential Spokesperson Salvador Panelo said in a statement.
"The Chief Executive approved the proposal of the Department of Health and the Department of Finance to increase the excise tax on alcohol and tobacco products," the Palace official 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," he added.
The higher excise taxes on tobacco and alcohol products, one of the components of the government’s tax reform program, are expected to fund the proposed universal health care program.
Health Secretary Francisco Duque earlier said the universal health care program would need a total funding requirement of P257 billion for the first year of its implementation.
In December last year, the House of Representatives approved on third and final reading House Bill (8677) on tobacco excise taxes and HB 8618 on alcohol taxes.
HB 8677 seeks to increase the tax on every cigarette pack from the current P32.50 to P37.50 in July 2019. It would go up further by P2.50 per pack every year from 2020 to 2022, and by another four percent annually in the succeeding years.
HB 8618, on the other hand, aims to raise the tax on beer and other fermented liquors from the current P23.50 per liter to P28 per liter starting in January, to P32 in 2020, P34 in 2021, and P36 in 2022.
HB 8677 is projected to generate P1.8 billion in additional revenues this year, while HB 8618 is estimated to raise revenue by P7.9 billion.
The Senate and the House of Representatives ratified also in December last year the universal health care bill, which aims to cover all Filipinos with health insurance while upgrading the government's medical facilities. (SunStar Philippines)