President Rodrigo Duterte has signed a law imposing higher taxes on alcohol, e-cigarettes, and other vapor products.
The Republic Act no. 11467 was signed to raise additional funds for the government’s Universal Healthcare Law.
Under the newly signed law, taxes on distilled spirits shall increase to P42 per proof liter this year and will increase by 6% every year starting 2025. There will also be an ad valorem tax imposed on the products which is 22% of the alcohol prices.
Meanwhile, taxes of wine and beer products will increase by P50 and P35 per liter respectively. These products will also be subjected to a 6% tax increase every year starting in 2025.
For vapor products, a pack of heated tobacco will have an excise tax of P25 this year. Salt nicotine products will have excise taxes set at P37 per milliliter while cigarette taxes are set at P45 per pack this year.
Taxes of all vapor products will increase by 5% every year in the succeeding years.
The law, meanwhile, exempts medicine for diabetes, hypertension, and high cholesterol in value-added tax.
By 2023, the law will also exempt value-added tax on prescription drugs for cancer, mental illness, tuberculosis, and kidney disease.
However, Presidential Spokesperson Salvador Panelo said the President has vetoed section 5 of the Republic Act.
“The sin tax law that has been approved, there’s one provision that was vetoed, section 5, regarding the authority of the court to first grant seizure of properties as well as searching,” he said.—AAC (with reports from Rosalie Coz)
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