Store Owners Slam Bill to Cut Cigarette, Vape Taxes

A community of small retailers has strongly opposed a proposal to reduce taxes on cigarettes and vapes, warning that such a move would harm public health and undermine efforts to curb addiction among Filipinos, especially the youth.

The Kapatiran ng mga Sari-sari Store sa mga Komunidad (KSSK), an alliance of community-based store owners, criticized Senator Sherwin Gatchalian for pushing a hearing on House Bill 11360 despite the Senate being in recess on May 19.

The bill seeks to lower excise taxes on cigarettes and vape products, citing rising levels of illicit trade.

In a statement, KSSK branded the measure the “Sin Tax Sabotage Bill” and said holding a session to give it airtime empowers legislation that favors harmful industries over public welfare.

“As store owners and consumers ourselves, it’s disheartening to see lawmakers prioritize making vices cheaper instead of lowering the prices of food,” said KSSK leader Marissa Costales.

“As a health advocate, Senator Gatchalian should know that the tobacco and vape industries are using smuggling as an excuse to promote addiction. There is no strong evidence that high taxes are causing the illicit trade,” she added.

Costales said experts have outlined multiple proven strategies to curb smuggling, including strengthening law enforcement, tightening border controls, fully implementing the track-and-trace system, and cracking down on smuggling syndicates.

She warned that reducing taxes would lead to lower prices, making cigarettes and vape products more accessible and appealing, especially to the youth.

“We won’t allow the law—and our stores—to be used as tools to spread addiction in our communities,” Costales said.

She also clarified that small retailers should not be seen as allies of the tobacco or vape industry.

“We simply comply with the laws and regulations. We’re doing our part to support our families and protect the community, not to help industries that harm public health,” she said.

The group called on Senator Gatchalian to oppose House Bill 11360 and ensure it does not pass into law.

Instead of lowering taxes, Costales said the government should consider raising taxes on harmful products like cigarettes and vape to protect young people and ensure sustainable funding for Universal Health Care.

The current tax on cigarettes and vapor products is part of the Philippines’ sin tax reform program, which aims to discourage consumption of harmful goods while generating revenues for health services.

Health advocates, economists, and civil society groups have long argued that any rollback of these taxes would jeopardize years of progress in tobacco control and healthcare financing.