Duterte presses Senate: Pass alcohol, cigarette tax

President Rodrigo Duterte. PCOO
President Rodrigo Duterte. PCOO

MANILA – President Rodrigo Duterte has urged the Congress for the immediate passage of the measure that would increase taxes on liquor, electronic cigarettes and vapor products.


In a letter to the Congress, Duterte certified as urgent the passage of the bill that aims “to generate additional revenue to support the effective implementation of the Universal Health Care Act and to further protect the right to health of the people.”


Under Senate Bill 1074, distilled spirits will be imposed an ad valorem tax of 20 percent on the net retail price per proof and a specific tax of P90 per proof liter on the first year of its implementation, which will be increased by P10 every year until the fourth year.  The specific tax rate will increase by 10 percent every year thereafter.


For fermented liquor and alcopops, a specific tax rate of P45 per liter on Year 1, increasing by P10 every year until Year 4. The specific tax rate will increase by 10 percent every year thereafter.


Wine products will be slapped with a specific tax of P600 per liter for sparkling wines and P43 per liter for still and carbonated wines. These rates will increase by 10 percent every year thereafter.


For e-cigarettes under the heat-not-burn product category, the bill seeks to increase the current rates of P10 per pack of 20 to P45 per pack on Year 1 to be at parity with regular cigarettes.


For vapor products, there will be a distinction between salt nicotine and freebase. From P10 per 10 milligrams or less, salt nicotine will increase to P45 per milligrams, while freebase will increase to P45 per 10 milligrams on Year 1. These rates will increase by P5 every year until Year 4 then five percent every year thereafter.


Once a bill is certified as urgent, the Congress can go away with the three-day rule, allowing lawmakers to pass a measure on third reading immediately after it is passed on second reading./PN

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