Duterte approves higher taxes on alcohol, tobacco

DAVAO CITY  , Philippines  —  President Duterte has approved in principle the proposal to impose additional excise taxes on tobacco and alcohol products, Malacañang said yesterday.

Duterte approved the joint proposal of the Departments of Finance and Health during the monthly Cabinet meeting on Monday.

“Yes. There is – the recommendation of the Department of Finance… is that this bill should be certified as urgent,” presidential spokesman and chief legal adviser Salvador Panelo said at a press briefing.

In December last year, the House of Representatives approved on third and final reading two bills seeking to increase the taxes on alcohol and tobacco products. 

“(This) is a health measure of course to dissuade people from excessively smoking,” Panelo said.

House Bill 8618 provides that distilled spirits such as brandy and whisky will be levied a 22-percent ad valorem tax per proof on the net retail price, plus a specific tax of P30 per liter beginning this year.

House Bill 8677 seeks to increase the excise tax on cigarettes to P37.50 per pack in July and will be raised by P2.50 a year after that.