House approves bill raising sin taxes

MANILA, Philippines — The House of Representatives on Tuesday approved on third and final reading a bill increasing the taxes on alcohol, e-cigarette and vapor products.

Voting 184-2-1, the lower chamber greenlighted House Bill 1026 — the first measure in the 18th Congress to be approved by the House.

The bill will be transmitted to the Senate for deliberations.

The House’s version of the sin tax bill further raises the excise tax on heated tobacco or e-cigarettes to P45 per pack in 2020 and an incremental increase of P5 per pack per year, on par with regular cigarettes, while vapor products with nicotine salts increases the tax to P30 from the current P10 per milliliter, with an incremental P5 yearly increase to P45 by 2023.

However, the Department of Health-Department of Finance (DOH-DOF) version of the bill proposes that vapor products be taxed at the same rate at P45 per milliliter with an incremental increase of P5 per year to P60 by 2023 and by 10% annually thereafter.

The DOF and DOH are hoping for the immediate passage of the measure in a bid to promote a healthy lifestyle for Filipinos and to fund the Universal Health Care program. — with a report from The STAR/Edu Punay