Health Secretary Teodoro Herbosa Jr. said the government is looking at a possible increase in taxes on vape and its products to generate funds that will cover the maturing loans incurred during the COVID-19 pandemic.
While part of the payments for maturing loans are provided under the General Appropriations Act and generated through taxes on sugar-sweetened beverages, it would be better to consider more fund sources, Herbosa said during a briefing in Malacañang.
“It would be good if additional taxes are imposed on vape … So that would be another source,” he said in Filipino.
The country’s economic managers are tasked to look into the measures that could raise more funds for the government.
House Committee on Ways and Means Chairman Joey Sarte Salceda said the government should pursue urgent fiscal reforms, given some P464 billion to cover in the form of borrowings during the COVID-19 pandemic period and are due to mature in 2026.
Herbosa earlier opposed proposals to lower the excise tax on tobacco and vape products, saying the government would be able to better protect the youth from the harmful effects of tobacco and vape by keeping their tax rates high.
