AER: Angara as reelectionist should raise tobacco tax to fulfill his promise

CIVIL-SOCIETY group Action for Economic Reforms (AER) urged Sen. Sonny Angara on Thursday to work on the passage of the tobacco tax bills now pending in the Ways and Means Committee that he chairs if he is to fulfill his campaign promise of “Alagang Angara.”

“As coauthor of the Universal Health Care bill that was recently passed by Congress, Senator Angara needs to ensure that there will be adequate financing for the full implementation of the said bill. However, even the Department of Health [DOH] appeals for further increases in the tobacco tax since huge reforms in the health-care system under the UHC will require resources greater than the combined funds from Pagcor and PCSO, and premium contributions,“said Jo-Ann Diosana, fiscal policy team head of AER.

AER issued this statement on Thursday in commemoration of the passage of the

Sin Tax Reform Act on December 20, 2012, when then-President Benigno S. Aquino III signed it into law.

According to Diosana, the benefits of sustained increases in the sin taxes continue to accrue to the Filipino people.

“The reforms in the sin tax system in 2012 brought about the decrease in the number of smokers from 31-percent smoking prevalence in 2008 to 23.3 percent in

2015. The largest cuts, according to the National Nutrition Survey, were in the young and poor sections of the population. In particular, the percentage of the population who never smoked went up from 54.3 percent in 2008 to 63.7 percent in 2015,” explained Diosana.

Data from the Bureau of Internal Revenue (BIR) show that tobacco tax collection increased from P32.2 billion in 2012 to P125.9 billion in 2017. This resulted in the rise of the health budget from P42 billion in 2012 to P171 billion in 2018.

The group said increasing the tobacco tax is supported by a majority of Filipinos; thus, it is a win for Angara and other reelectionist senators who will champion it. More important, it is a win for all Filipinos, especially the poor, the youth, and even the tobacco farmers, AER asserted.

“We hope Senator Angara will realize that committing to the increase in tobacco tax is crucial in fulfilling his promise of better health for the people. May this season of hope and love move our legislators toward decisions that will truly save the precious lives of our fellow Filipinos,” said Diosana.