SWP Criticizes Lawmakers Over Tobacco Tax Cut Proposal

Social Watch Philippines (SWP) has denounced the authors of a proposed bill to reduce tobacco taxes, calling it a threat to public health and government revenues.

House Bill 11279, filed on January 14, 2025, by Representatives Kristine Singson-Meehan, Antonio “Tonypet” Albano, Angelo Marcos Barba, Ron P. Salo, Solomon R. Chungalao, and Margarita Ignacia Nograles Almario, seeks to impose a moratorium on the annual 5% tobacco tax increase until 2026.

The bill proposes replacing the current system with a 6% adjustment every two years, starting in 2027. Its authors argued this would combat illicit trade and improve the tobacco industry’s market share.

SWP Co-convenor Dr. Ma. Victoria Raquiza criticized the bill for lacking evidence to support claims that higher taxes drive illicit trade.

“It is alarming that the proponents filed the bill without providing solid evidence that higher tobacco taxes cause an increase in illicit trade. They are sabotaging a proven measure to reduce tobacco consumption,” Raquiza said.

“This clearly shows that these lawmakers care more about the tobacco industry than the health of the Filipino people. It raises questions about our legislators’ development priorities. They must be held accountable,” she added.

SWP Youth Representative Elijah San Fernando accused the bill’s authors of consistently prioritizing the tobacco industry over public welfare.

“This is not an isolated act. Their history shows a pattern of championing policies that benefit the tobacco industry over the welfare of Filipinos,” San Fernando said.

He highlighted previous legislation supported by the same lawmakers, such as lowering the legal age for vapor product access from 21 to 18, permitting online vape sales, and allowing flavored vape products.

“These are the same individuals who classified cigarettes and vapes as essential commodities, as though protecting them from smuggling is critical to national food security. While Filipinos struggle with rising costs of necessities, these lawmakers are busy making cigarettes and vapes cheaper,” he added.

Sin taxes are a primary funding source for Universal Health Care programs, including those administered by the Department of Health and PhilHealth. The proposed tax reduction, combined with the zero budget allocation for PhilHealth in 2025, could jeopardize healthcare services nationwide.

“It is unfortunate that these politicians show little, if any, concern for Filipinos who will get sick due to smoking,” Raquiza said.

She cited data from Action for Economic Reforms (AER), which estimates that the bill would result in 400,000 additional smokers and a PHP 27.5 billion revenue loss over the next five years.

With the 2025 elections approaching, SWP urged voters to reject candidates prioritizing corporate interests over public health. The group called on Congress to oppose the bill and continue efforts to reduce smoking prevalence and safeguard future generations.