President Rodrigo Duterte has signed into law a measure which seeks to increase the excise tax on tobacco products by P5 annually.
Executive Secretary Salvador Medialdea said the President signed Republic Act No. 11346 to address the “urgent need” to protect the right to health of the Filipino people and to maintain a broader fiscal space.
The bill also covers heated tobacco products and vapor products.
Certified urgent by the President, the measure was expected to bring in P15 billion in revenues that will boost funding for the Universal Health Care Law and health programs that will be determined by the Department of Health.
Revenues will also be allocated and divided among the tobacco-producing provinces.
From the current P35, a pack of cigarettes will be priced at 45 next year.
It will be sold to P50 per pack in 2021, P55 in 2022, and P60 starting Jan. 1, 2023.
Heated tobacco products or e-cigarettes will be taxed P10 per pack beginning Jan. 1, 2020 and a 5-percent yearly increase will be effective Jan. 1, 2021.
For vapor products, individual cartridge, refill, pod or container of its liquid solutions or gel will be charged P10 per 10 milliliters.
If the product being sold is more than 50 ml, it will be charged P50 excise tax plus P10 per additional 10 ml.