THE revenues to be collected from higher excise taxes on alcohol products, electronic cigarettes (e-cigarettes), and heated tobacco products (HTPs) will not only fund the implementation of Universal Health Care law but also the achievement of sustainable development goals (SDGs), the National Economic and Development Authority (NEDA) said Thursday.
In January, President Rodrigo Duterte signed into law Republic Act 11467 which hiked levies on alcohol, e-cigarettes, and HTPs.
With the new law in place, distilled spirits such brandy, gin, vodka, tequila, and whiskey would be charged a specific tax of P42 per proof liter, on top of a 22 percent tax representing excise and value-added taxes. Levies will increase to P47 per liter in 2021, P52 per liter in 2022, P59 per liter in 2023, and P66 pesos in 2024.
On the other hand, taxes on beer and
fermented liquor will hike to P35 per liter this year and increase by another
P2 per liter every year starting 2021 until it reaches P43 per liter 2024.
Thereafter, the rate will increase by 6 percent every year.
Heated tobacco products will be taxed P25 per pack in 2020, P27.50 in 2021, P30
in 2022 and P32.50 come 2023.
Over a five-year period from 2020 to
2024, the Department of Finance estimates revenues totalling P137.2 billion.
In a statement, the NEDA said among the salient feature of the law will split
excise tax revenues between the implementation of the Universal Health Care Act
of 2019 by 60 percent, the SDGs by 20 percent, and nationwide medical
assistance and the Health Facilities Enhancement Program by another 20 percent.
The NEDA noted that RA 11467 will benefit all 17 SDGs through the funding of programs and projects that support the 2030 Agenda for Sustainable Development.
Higher sin taxes on alcohol,
e-cigarettes, and HTPs will primarily benefit Good Health and Well-Being
through the additional funding for the UHC, it said.
“It will also help in addressing Target 3.5: Strengthen the prevention and
treatment of substance abuse, including narcotic drug abuse and harmful use of
alcohol as RA 11467 aims to curb their consumption,” it added.
Under the new measure, the regulatory function of the Food and Drugs Administration (FDA) over e-cigarettes and HTPs is reinforced.
The FDA has also been tasked to formulate a regulatory framework for the immediate operationalization of this section of the law.
RA 11467, which was enacted into law on Jan. 22, amends the National Internal Revenue Code of 1997. (GMA News)
