Alcohol, Tobacco Consumption Costs PHP1.1 Trillion Annually

By Francis Allan L. Angelo

The Philippines loses an estimated PHP 1.1 trillion annually due to the economic and health costs of alcohol, tobacco, and vape consumption, according to new research from policy think tank Action for Economic Reforms (AER).

AER revealed that indirect costs, such as lost productivity from illnesses and premature deaths, accounted for PHP 703.5 billion in 2021. Combined with direct healthcare expenses, the total economic burden of alcohol, tobacco, and vapes surpassed the combined 2025 budgets of the Department of Education and the Department of Health.

“The true cost of alcohol, tobacco, and vapes goes beyond what we see on the shelves, and the Filipino people are paying the price with their lives,” said AJ Montesa, Fiscal Policy Lead at AER. “We need to tax these products to make up for the dangers they pose to society and keep these harmful products away from children and teens.”

The think tank also cited the Institute for Health Metrics and Evaluation’s Global Burden of Disease report, which found that alcohol and tobacco use cause 115,000 deaths annually in the Philippines.

Beyond fatalities, these substances contribute to widespread illnesses, disabilities, and reduced productivity, resulting in an estimated 3.9 million years of healthy life lost.

Public health advocates are calling on election candidates to prioritize health taxation reforms.

They argue that increasing taxes on alcohol, tobacco, and vape products will not only hold industries accountable but also generate revenue that can be redirected toward universal health coverage and prevention programs.

“Ultimately, even Filipinos who don’t smoke or drink alcohol carry the weight of these costs,” Montesa added.

“You don’t need to consume these products to be a victim of drink driving, domestic violence, or secondhand smoke. It’s time for voters to demand policies that put public health over corporate profits.”

Despite the staggering economic and health impacts, alcohol and tobacco industries continue to thrive.

Seven of the largest companies in these sectors generated PHP 506 billion in revenue in 2022, placing them among the top 0.2% of the most profitable businesses in the country.

Advocates argue that the industries’ profits come at the expense of taxpayers and the healthcare system, which bears the brunt of the financial and social burden.

With the upcoming elections, AER and other health advocates are urging voters to support leaders who will champion public health policies, including higher taxes on harmful products, to curb the growing epidemic of alcohol, tobacco, and vape use in the Philippines.