THE Senate yesterday ratified a measure that will impose higher taxes on “sin products” and generate P24.9 billion additional revenues to support the government’s Universal Health Care program.
Sen. Pia Cayetano, Senate ways and means committee chair, said the passage of the new sin taxes that was certified as urgent by President Duterte and will take effect on January 1, 2020.
For the first year of the law’s implementation, distilled products will have an additional specific tax of P42 per liter, additional P47 for 2021; P52 for 2022; P59 for 2023; and P66 for 2024; on top of the 22 percent ad valorem tax. A six percent indexation will be imposed thereafter.
For fermented products, there will be an increase of P35 per liter in 2020, P37 in 2021, P39 in 2022, P41 in 2023, and P43 in 2024. A six percent indexation shall also be imposed thereafter.
Heated tobacco products will have an added tax of P25 per pack in 2020 and will have a uniform increase of PP2.50 every year until 2023, which will be followed by a five percent indexation.
Vapes (free base) will have an additional tax of P45 per 10 milliliter and will have an increase of P5 every year until 2023. Salt nicotine e-cigarettes will have a P37 additional tax in 2020 and will have an additional tax of P5 per year until 2023.
Wines will have an additional tax of P50 per liter over the next five years.
Proceeds from the new taxes will go to the Universal Health Care Program (60 percent) while 20 percent will go to Health Facilities Enhancement Programs, while the remaining 20 percent will go to Sustainable Development Goals.
Albay Rep. Joey Salceda said the bicam-approved bill will be sent to Malacanang next week for the President’s signature.
