Duterte to sign tobacco tax hike bill this week

The tobacco tax hike bill, which was passed by the 17th Congress, increases the rates of the tobacco excise from PHP35 to PHP45 per pack and up to PHP60 in 2023 and added a tax on heated tobacco products and e-cigarettes. (Pexels photo)

MANILA — President Rodrigo Duterte is expected to sign into law this week a measure that aims to raise the excise tax on tobacco products, a Finance official said on Wednesday.

Finance Undersecretary Karl Kendrick Chua said the tobacco tax hike bill, which was earlier certified by the President as urgent, will help fund the government’s Universal Healthcare program.

“It is an enrolled bill that was transmitted last June 27 to Malacañang, and that means it lapsed into law July 27. And my understanding is it is ready for signature by the President,” Chua said in an economic briefing in Malacañang.

“I was told it will be signed this week because that is a priority measure, certified urgent by the President in the previous Congress and mentioned by the President in the SONA (state of the nation address),” he added.

The tobacco tax hike bill, which was passed by the 17th Congress, increases the rates of the tobacco excise from PHP35 to PHP45 per pack and up to PHP60 in 2023 and added a tax on heated tobacco products and e-cigarettes.

Under the enrolled bill, 50 percent of all collection from tobacco, heated cigarette, e-cigarette, sweetened beverage and alcohol will go to Universal Healthcare.

The bill is covered in Package 2 plus of the Comprehensive Tax Reform Program.

Deputy Speaker Luis Raymund Villafuerte expressed hope that the remaining packages of the tax reform program will also be passed within the year.

“We’re targeting all of these by this year,” Villafuerte said.

Villafuerte, principal author of the tax reform bill, is counting on weekly meetings between Finance officials and lawmakers to discuss the remaining packages.

According to him, the presence of a “super majority” in Congress may help ensure the passage of the remaining packages.

Chua said he and other economic managers have been meeting with lawmakers since the start of July to tackle tax reform and other fiscal issues.