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Senators urged to reject House proposal lowering Sin Tax rates in coming years

smoking cigarette
[File Photo]
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A public health advocacy group on Wednesday urged Committee on Ways and Means Chairman Senator Win Gatchalian to block House Bill 11360 — described as the "Sin Tax Sabotage Bill," — and to reject tobacco industry manipulation until the 20th Congress.

HealthJustice Philippines also backed Gatchalian's pronouncement at Monday's hearing to stop further deliberations on rolling back tobacco taxes during the bicameral conference committee.

"We challenge Senator Gatchalian to stand his ground and fight for the health of our nation and our youth until the Sin Tax Sabotage Bill is completely off the table," said Dr. Jaime Galvez Tan, board member of HealthJustice and former Health Secretary.

"We urge that he and other health champions in the Senate will strongly push back against tobacco industry influence and interests," Galvez Tan added.

Galvez Tan continued, "We object to lower tax rates on tobacco products. It is a misaligned solution to curb illicit tobacco trade and shortfalls in tax revenues."

The former Health chief said they fear "it will tragically lead to an upsurge in tobacco consumption," as well as hike the risk of noncommunicable diseases (NCDs), including cancer.

In 2019, NCDs were responsible for approximately 70 percent of total deaths in the country, according to World Health Organization data.

At Monday's Senate hearing, HealthJustice also highlighted the importance of harmonizing tax rates for tobacco as well as vapor products.

"We also support the move to impose a flat tax on all vapor products, regardless of nicotine content. We recognize this as a step forward," stressed Atty. Faith Laperal, Executive Director of HealthJustice."

"To be effective, tobacco tax systems and administration must be efficient, predictable, and easy to enforce," she continued.

HB 11360 was passed on third and final reading at the House of Representatives in February. It proposes alternating tax rate increases on tobacco products of only two percent and four percent annually from 2026 to 2035—much lower than the current five percent yearly increase under the Sin Tax Law.

"Far from promoting efficiency, the proposed alternating tax increases complicates what should be a straightforward fiscal policy tool. It increases the likelihood of misreporting, under-declaration, or compliance delays. Retaining a uniform annual rate or inflation-indexed mechanism would reduce administrative burden and safeguard against industry manipulation," Laperal added.

Meanwhile, Health Secretary Teodoro Herbosa—recently elected President of the 78th World Health Assembly just two weeks before World No Tobacco Day—reiterated his commitment for urgent measures addressing the damage caused by tobacco products. 

"The scourge of tobacco remains one of the most persistent and preventable threats to global health, silently undermining progress across generations and contributing to the vast majority of noncommunicable diseases that now account for most deaths worldwide," Herbosa said in his speech.

"As a global community and as champions of health, we are called to urgently act—not simply with sympathy, but with boldness and resolve—to address these long-standing health challenges," he added.

Herbosa further stated, "We pledge to align our investments with primary health care to strengthen subnational and local systems, and to confront the root causes of illness, and reinforce interventions addressing social determinants of health."

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