Health Group Opposes Proposal to Reduce Tobacco Tax

The Philippine Smoke-Free Movement (PSFM), an organization composed of over 100 members from various organizations and individuals, strongly opposes the proposal to reduce tobacco taxes.

In a hearing led by Representative Joey Salceda on January 8, 2025, a proposal was introduced to postpone the annual 5% increase in tobacco excise tax until 2026. According to the proposal, this is necessary to address the decline in government revenue caused by illicit trade. However, there is no strong evidence that high taxes are the cause of the country’s revenue losses.

The PSFM believes that this does not address the root of the illicit trade problem. What we should do is strengthen the enforcement of laws against smuggling and illegal distribution instead of reducing taxes. This proposal only shows an attempt by the tobacco industry to manipulate lawmakers to promote their self-interests, which will result in cheaper prices and higher tobacco consumption.

Tobacco tax is important not only as an additional source of government revenue but also as an effective measure to reduce tobacco use and protect public health, especially the youth. Cheaper tobacco can entice more young people to use it, leading to a higher risk of diseases such as cancer, heart disease, and other chronic diseases.

The PSFM calls on lawmakers to prioritize public health and protect the gains in tobacco tax reform. Instead of prioritizing the interests of the tobacco industry, it is important to listen to health experts, law enforcement agencies, economists, and pro-health advocacy groups.