Action for Economic Reforms (AER) and health advocates on Friday appealed to the President to veto the provision pertaining to the “low” tobacco tax rate in the newly ratified Tax Reform for Acceleration and Inclusion (Train) bill. In the Train bill, the tobacco tax rate is only P32.50 per pack, or an increment of only P1.30 per pack of cigarettes, in the first half of 2018. The marginal increase in tobacco tax rate will not significantly reduce the number of smokers,” Diosana said in a statement. Advocates also found out that the ratified Train bill could supersede the mandatory allocation of 85 percent of incremental revenues from tobacco taxes for PhilHealth and other health programs. Under the Train bill’s tobacco excise tax provision, Congress raised the cigarette tax from P30 to P32.50 per pack for the period January to June 2018, and to P35 beginning July 2018.

Source: Manila Times December 15, 2017 17:26 UTC