New sin tax law to give Pinoys more comfortable life: Andanar

MANILA -- The signing of Republic Act (RA) 11467, which raises excise taxes on vape, heated tobacco and liquor products, will help President Rodrigo Duterte fulfill his promise of a “dignified and comfortable” life for Filipinos, Presidential Communications Operations Office Secretary Martin Andanar said on

Friday.

In a statement, Andanar said the new law would pave the way for the effective and prompt delivery of basic services.

“We laud President Duterte for signing the bill that will impose additional excise taxes on alcoholic beverages and e-cigarettes,” Andanar said.

“The signing of RA 11467 is indeed a triumph for every Filipino as it will allow the government to continue to provide social services and programs that will achieve the vision of President Duterte of providing a dignified and comfortable life for all,” he added.

RA 11467, signed by the President on Jan. 22, seeks to increase the exMANILA cise tax rates on alcohol, heated tobacco, and vape products to generate funds for the government’s universal health care (UHC) program.

Earlier, the Department of Finance estimated that the higher taxes on vape, tobacco, and liquor would generate PHP47.9 billion for the UHC prothe

gram in 2020, and a total of PHP356.9 billion for the program over the next five years.

Andanar said RA 11467 would enable Filipinos to enjoy equitable access to quality and affordable health care services.

“This new law will generate revenue which the government can use in the implementation of the Universal Health Care (UHC) program and the enhancement of its health facilities, in order to deliver quality healthcare to all,” he said.

The new law imposes a 22-percent ad valorem tax on of the P42 per proof liter for distilled spirits in 2020. This will increase to P47, P52, P59, and P66 per proof liter from 2021 to 2024.

For wine products, the excise tax is PHP50 per liter in 2020 and will increase by six percent every year starting 2021.

Excise tax rates on beer products and other fermented liquors are P35, P37, P39, P41, and P43 per liter in 2020, 2021, 2022, 2023, and 2024, respectively.

RA 11467 exempts tuba, basi, tapuy, and similar fermented liquors from higher excise taxes.

Meanwhile, every pack of heated tobacco products with 20 units or more are levied with an excise tax of Px25 in 2020, P27.50 in 2021, P30 in 2022, and P32 in 2023.

Salt nicotine products will be slapped with an excise tax of P37 in 2020, P42 in 2021, P47 in 2022, and P52 in 2023.

For “freebase” or “classic” nicotine products, excise tax rate increases to P45 per pack in 2020, P50 per pack in 2021, P55 per pack in 2022, and P60 per pack in 2023.

The new law also exempts the sale or importation of medicines for diabetes, high cholesterol and hypertension from value-added tax (VAT) beginning January 2020.

It also exempts from VAT medicines for cancer, mental illness, tuberculosis, and kidney diseases starting January 2023.