House Approved Measure Imposing A New Set Of Taxes On Alcohol And E-cigarettes
A new bill was approved by the House of Representatives on Tuesday which will raise taxes on alcoholic drinks and select tobacco products. The House Bill 1026 garnered approval from 184 lawmakers and with only 2 against it and 1 who abstained.
With this new bill, distilled spirits such as brandy, gin, and rum will see a 22-percent ad valorem tax and a ₱30 specific tax per proof liter starting this year. The specific tax will be hiked by ₱5 each succeeding year until it reaches ₱45 in 2022, after which the hike will be 7 percent each year.
Beers and “alcopop” products, will be taxed with ₱28 per liter this year, ₱32 next year, ₱34 in January 2021, and ₱36 in January 2022. This will be hiked by 7 percent each year starting in 2023. Sparkling wines will have a 15-percent ad valorem tax and a specific tax of ₱650 per liter. The specific tax will be hiked by 7 percent each year, starting in Jan. 2020. Still wines and carbonated wines with a 15-percent ad valorem tax and a ₱60 per liter specific tax, which will be hiked 7 percent each year.
Heated tobacco products will be taxed ₱45 per pack of 20 units effective January 2020. This will go up to ₱50 by Jan. 2021, ₱55 by Jan. 2022 and ₱60 by Jan. 2023. The tax rate will be increased by 5 percent every year thereafter.
Vape products will be taxed by each cartridge, refill pod or container with liquids or gels. Nicotine salt will be taxed ₱35 per milliliter starting next year, which will be increased by ₱5 very year until 2023. The tax will be hiked by 5 percent every year thereafter.
Conventional freebase or classic nicotine will be taxed ₱4.50 per milliliter starting in 2020, with a yearly tax increase of ₱0.50 until 2023. The tax will also be hiked by 5 percent every year starting January 2024.
According to the Department of Finance, the revenues from the new taxes will be used to fund the Universal Health Care law
This bill will be transmitted to the President’s office by both the chamber of Congress to be enacted.