New sin tax law to give Pinoys comfortable life: Andanar

SEC. MARTIN ANDANAR PCOO

NEWS CORNER

“The signing of RA 11467 is indeed a triumph for every Filipino as it will allow the government to continue to provide social services and programs that will achieve the vision of President Duterte of providing a dignified and comfortable life for all,” he added.

New sin tax law to give Pinoys comfortable life: Andanar MANILA - The signing of Republic Act (RA) 11467, which raises excise taxes on vape, heated tobacco and liquor products, will help President Rodrigo Duterte fulfill his promise of a “dignified and comfortable” life for Filipinos, Presidential Communications Operations Office Secretary Martin Andanar said on Friday.

In a statement, Andanar said the new law would pave the way for the effective and prompt delivery of basic services.

“We laud President Duterte for signing the bill that will impose additional excise taxes on alcoholic RA 11467, signed by the President on Jan. 22, seeks to increase the excise tax rates on alcohol, heated tobacco, and vape products to generate funds for the government’s universal health care (UHC) program.

Earlier, the Department of Finance estimated that the higher taxes on vape, tobacco, and liquor would generate PHP47.9 billion for the UHC program in 2020, and a total of PHP356.9 billion for the program over the next five years.

Andanar said RA 11467 would enable Filipinos to enjoy equitable access to quality and affordable health care services.

“This new law will generate revenue which the government can use in the implementation of the Universal Health Care (UHC) program and the enhancement of its health facilities, in order to deliver quality healthcare to all,” he said.

The new law imposes a 22-percent ad valorem tax on of the PHP42 per proof liter for distilled spirits in 2020. This will increase to PHP47, PHP52, PHP59,

and PHP66 per proof liter from 2021 to 2024.

For wine products, the excise tax is PHP50 per liter in 2020 and will increase by six percent every year starting 2021. Excise tax rates on beer products and other fermented liquors are PHP35, PHP37, PHP39, PHP41, and PHP43 per liter in 2020, 2021, 2022, 2023, and 2024, respectively.

RA 11467 exempts tuba, basi, tapuy, and similar fermented liquors from higher excise taxes.

Meanwhile, every pack of heated tobacco products with 20 units or more are levied with an excise tax of PHP25 in 2020, PHP27.50 in 2021, PHP30 in 2022, and PHP32 in 2023. Salt nicotine products will be slapped with an excise tax of PHP37 in 2020, PHP42 in 2021, PHP47 in 2022, and PHP52 in 2023.

For “freebase” or “classic” nicotine products, excise tax rate increases to PHP45 per pack in 2020, PHP50 per pack in 2021, PHP55 per pack in 2022, and PHP60 per pack in 2023.

The new law also exempts the sale or importation of medicines for diabetes, high cholesterol and hypertension from value-added tax (VAT) beginning January 2020.

It also exempts from VAT medicines for cancer, mental illness, tuberculosis, and kidney diseases starting January 2023. (Ruth Abbey Gita-Carlos/PNA)