DOH chief eyes higher taxes for cigarettes

MANILA, Philippines - Health Secretary Enrique Ona is considering an increase in taxes for cigarettes to fortify efforts to discourage Filipinos from smoking.

According to Dr. Yolanda Oliveros, Ona’s head executive assistance, the health chief wants to adopt the tax scheme for cigarettes proposed by United States President Barrack Obama.

Obama, who used to be a smoker but quit during the presidential campaign, had eyed a tax of $0.10 per stick or $2 per pack or P90 (P1:$45) for every 20-stick pack.

“Increasing the tax will reduce access to tobacco because we will reduce the capacity (of smokers) to pay. In doing this, our primary targets are the students. If cigarettes become more expensive, they won’t be able to afford it anymore,” she said in a telephone interview.

Oliveros noted that Ona believes that the government would not only generate revenues from cigarette taxes but it would also reduce the incidence of cancer, cardiovascular and pulmonary diseases and other illnesses related to smoking.

The taxes to be generated from cigarettes are also expected to help fund the enrollment of some five million poor Filipinos in the Philippine Health Insurance Corp.

Ona had made known his stand on cigarette taxes in a dialogue with non-government organization Framework Convention on Tobacco Control Alliance Philippines (FCAP) last Aug. 3.

FCAP executive director Dr. Maricar Limpin had lauded Ona for this pronouncement, saying that imposing higher cigarette taxes has already been proven to be an effective way to reduce cigarette consumption.

“We are banking on Secretary Ona’s proposal to increase cigarette (tax)... The Health secretary’s proposal will go a long way for the Aquino administration (which is) facing a huge budget deficit while dealing with very high expectations on poverty alleviation and addressing the social welfare of the people,” she added.

Limpin claimed the current taxes on cigarettes range only from P2.47 for “low-priced brands” to P27.16 per pack for “premium cigarette brands, placing the Philippines as among the countries selling the cheapest cigarettes in Asia.”

“The executive branch has expressed its need for resources and the role of the legislature is to deliver these to the people. Tobacco tax increases will result to higher prices of cigarettes and will help reduce smoking prevalence especially among the youth and the poor,” she said.

Limpin added that with the budgetary deficit facing the country, “the least that this government needs is more poor people getting sick of smoking-related diseases.”

Citing records of the Bureau of Internal Revenue, FCAP reported that in 2006, the excise tax collection from tobacco amounted to P26.8 billion, contributing merely 4.1 percent of the agency’s total collection for that year.

But based on the 2005-2006 Tobacco and Poverty Study in the Philippines conducted by the University of the Philippines’ College of Public Health, National Epidemiology Center and World Health Organization, the healthcare expenditures for cigarette-related illnesses reached P276 billion.

“Tobacco and cigarettes, unlike other consumer products, cause fatal health consequences that any indication of increase in sales would mean more Filipinos will potentially acquire life-threatening smoking-related diseases,” Limpin maintained.