Duterte expected to sign bill imposing higher tobacco excise tax

MANILA, Philippines — President Rodrigo Duterte may sign into law this week the bill raising the excise tax on tobacco products, the finance department said Wednesday.

Finance undersecretary Karl Kendrick Chua said the measure was transmitted to Malacañang last June 27 and would lapse into law on July 27 if the president does not act on it. 

"I was told it would 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," Chua said in a press briefing in Malacañang.

"My understanding is it is ready for signaure by the president," he added. 

The measure aims to support the government's health care program by increasing tobacco excise tax rates and covers heated tobacco and vapor products.

It will increase the excise tax slapped on cigarettes from P35 to P45 per pack next year. The tax will increase to P50 per pack in 2021, P55 per pack in 2022 and P60 per pack in 2023. From being excise-free, heated tobacco products or e-cigarettes will be levied P10 per back beginning next year. The tax will increase by five percent every year effective Jan. 1, 2021.

Vapor products, individual cartridge, refill, pod or container of its liquid solutions or gel will be charged P10 per 10 ml. Products that are more than 50 ml, will be levied P50 excise tax plus P10 per additional 10 ml.

The inclusion of e-cigarettes in the items that can be taxed is expected to generate an additional P2 billion in state revenues. Officials previously said the tobacco excise tax law would raise P15 billion in revenues during the first year of its implementation.