Duterte to sign measure to further hike tobacco excise tax this week

MANILA, Philippines — President Rodrigo Duterte will sign this week a proposed law that will increase further the excise taxes on tobacco products, a measure that the Chief Executive has certified as urgent, a finance official disclosed Wednesday.

“It is an enrolled bill that was transmitted last June 27 to Malacañang. That means it will lapse into law (on) July 27. And my understanding is it is ready for signature by the President,” Undersecretary Karl Kendrick Chua said in an economic briefing in Malacañang.

The tobacco excise tax bill passed by the 17th Congress, according to Chua, would increase tax rates of cigarettes per pack from the current P35 to P45 next year, up to P60 in 2023. The measure also included a tax on heated tobacco products and e-cigarettes. 

“I was told it would be signed this week because that is a priority measure certified urgent by the President in the previous Congress and mentioned by the President in the Sona,” Chua noted.

The further increase in tobacco excise tax is part of the administration’s tax reform package 2-plus.

If signed, the law would increase the excise tax on cigarettes by P45 per pack effective January 1, 2020. It would also raise the excise tax on cigarettes to P50 per pack in 2021, P55 per pack in January 2022, and P60 per pack starting January 1, 2023. /kga