Taxing smoking

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IT IS UNFORTUNATE that in the Philippines where poverty is pervasive, out-of-pocket spending on health is high (56 percent of the total health expenditures), according to social development and health budget advocacy network Social Watch Philippines. For smoking-related and preventable diseases, the government and households lose around P210 billion yearly, it added.

Come to think of it, tobacco and poverty are closely linked. It’s a cycle: more poor people smoke, get sick, and are pushed further into poverty. What is worse is when they do not seek care at all and die because of diseases attributable to smoking.

In 2012 Congress got creative and came up with a health/tax measure with very clear evidence-based pro-poor impacts – the Sin Tax Law. Through this legislation, the government was able to finance Universal Health Care and other priority health programs.

But the 2012 tax increase can still be improved to finance an expanded Universal Health Care that will include primary health care and human resources development.  It will also deter new smokers from cigarette smoking addiction. Will our present set of legislators support the move to raise tobacco tax to its maximum level?

The fight for substantial investment in health is a continuing battle. While the increased resources for health due to the Sin Tax Law have helped improve health services, it is still not enough. Increasing tax on tobacco will not only prevent deaths but also protect resources which can be used for instance to improve services and reforms in the healthcare system.

We cannot be complacent just because the Sin Tax Law was passed in 2012. That was a victory but now is not the time to sit on our laurels while healthcare in the Philippines remains expensive and smoking prevalence remains a daunting challenge.
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