Duterte signs new sin tax reform law

MANILA – President Rodrigo Duterte has signed into law a measure increasing taxes on alcohol, heated tobacco and vapor products.

Presidential spokesman Salvador Panelo confirmed President Duterte’s signing of Republic Act 11467 on Wednesday evening.

President Duterte, in November last year, certified the measure as urgent, saying tax adjustments would “address the urgent need” to fund Universal Health Care.

Under the new law, the government is set to generate around P24.9 billion in revenues, which will be used for the implementation of the Universal Health Care program, Health Facilities Enhancement Program of the Department of Health and programs seeking to attain the country’s Sustainable Development Goals.

Apart from imposing additional sin taxes, the law also includes a provision making medicines for heart disease, diabetes, and high cholesterol exempted from value-added tax (VAT) starting January 2020.

Medicines for mental health, cancer, tuberculosis, and kidney diseases will also be VAT-free beginning on January 2023.

“The measure is a win-win situation as it seeks to curb vices while supporting the nationwide health program and exempting specific prescription medicines from VAT,” Panelo said.

In July last year, the President also signed a law raising excise taxes on cigarettes by P45 per pack by 2020, P50 per pack by 2021, P55 per pack by 2022, and P60 per pack by 2023./PN

 

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