Advocates urge Senate to junk ‘Sin Tax Sabotage’ bill

The Sin Tax Coalition fears the tobacco industry will use the hearing to hijack the legislative process to serve their business interests

MANILA, Philippines – A group of medical professionals and health advocates that lobbied for the then-Sin Tax Law of 2012 is urging senators to junk a bill that seeks to lower existing tax structures on vape and tobacco products.

The Sin Tax Coalition on Monday, May 19, questioned the decision of Senator Sherwin Gatchalian, who chairs the Senate Ways and Means Committee, to conduct hearings on House Bill (HB) 11360 while the Senate is in recess.

“Dapat maglabas ng pahayag si Senator Gatchalian upang ilinaw kung sino ang kanyang tunay na pinapanigan–kung siya’y nasa panig ng kalusugan o ng tobacco industry,” the coalition said in a statement.

(Senator Gatchalian should release a statement clarifying whose side he’s really on–if he’s siding with health or the tobacco industry.)

Dubbed the Sin Tax Sabotage Bill by health advocates, the bill was passed in the House of Representatives on its third and final reading in January. The measure seeks to lower excise taxes on cigarettes to 2% every even-numbered year starting 2026 and by 4% every odd-numbered year beginning 2027.

While lawmakers argued that the bill aims to curb revenue losses from the illicit trade, Action for Economic Reforms (AER) fiscal policy program officer AJ Montesa told Rappler the measure would cost the government P176.5 billion in foregone revenues over the next decade.

“HB 11360 would result in an estimated 1.86 million new smokers by 2035, and an increase of over 500 million cigarette packs consumed. This will result in an estimated 160,000 additional and preventable deaths,” he said.

The coalition also projects that lowering tax rates for cigarette products will result in 400,000 new smokers.

Gatchalian earlier said he was only interested in covering provisions concerning vape products. But the Sin Tax Coalition fears the tobacco industry will use the hearing to hijack the legislative process to serve their business interests.

“Kung ang tunay na layunin ni Senator Gatchalian ay protektahan ang kalusugan ng mamamayang Pilipino, naaayon sa katwiran na siya’y mag-file ng hiwalay na bill na para lamang sa pagtaas ng tax rates ng vape at heated tobacco products,” the group wrote.

(If Senator Gatchalian’s real goal is to protect Filipinos’ health, it would make sense for him to file a separate bill to raise the tax rates of vape and heated tobacco products.)

The Sin Tax Coalition also urged Gatchalian and the Senate to remove provisions seeking to lower levies on cigarettes.

“And in the event that a bicameral conference is held, senators must vow to uncompromisingly block any attempt to circumvent the provisions on lowering cigarette taxes and eliminating indexation inflation,” it said in Filipino.

The AER estimates that excessive tobacco and alcohol consumption costs the Philippines around P1.1 trillion annually. – Rappler.com