PRESIDENT Rodrigo Duterte is poised to sign into law this week the proposed measure further increasing excise taxes on tobacco products, a Department of Finance (DOF) official said on Wednesday, July 24.
"It is an enrolled bill that was transmitted last June 27 to MalacaƱang. That means it will lapse into law July 27. And my understanding is it is ready for signature by the President," Finance Undersecretary Karl Kendrick Chua said in a press briefing.
"I was told it would be signed this week because that is a priority measure certified (as) urgent by the President in the previous Congress and mentioned by the President in the Sona (State of the Nation Address)," Chua added.
On May 28, Dutrte certified as urgent the Senate measure proposing higher tobacco tax to ensure the "effective' implementation of the Universal Health Care Act, which was signed in February this year to provide Filipinos with equitable access to quality and affordable health care services.
The tobacco excise bill, which was approved by the 17th Congress, intends to increase the excise tax of tobacco products to P45 in 2020. The tobacco tax will go up by P5 every year until it reaches P60 in 2023, then by five percent annually thereafter.
Cigarettes are currently levied P35 per pack as provided by Republic Act 10963 or the Tax Reform for Acceleration and Inclusion Act (Train) in July 2018. It is scheduled to go up to P37.50 in January 2020.
During his Sona on Monday, July 22, the President urged Congress to further raise the taxes on tobacco and alcohol because of the health risks caused by the products. (SunStar Philippines)