THE government has a goal to reduce the number of smokers in the country, saving both lives and the enormous costs of medical treatment for preventable, smoking-related ailments. It also now has a goal, thanks to the recently passed Universal Health Care (UHC) Law, of funding health care for tens of millions of Filipinos who do not have access to affordable care. Both of these are progressive, praiseworthy initiatives. They cannot both be satisfactorily achieved, however, with the single tool of the “sin tax” on tobacco products.

Under the current tax scheme, there is P35 per pack excise tax on cigarettes, which will be raised to P37.50 per pack in 2021 and P40 per pack in 2023. From 2024, the tax rate will be increased by 4 percent annually.

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