Late last year, President Benigno Aquino III signed Republic Act No. 10351, otherwise known as the sin tax reform bill. The law increases taxes on alcohol and cigarettes. The law, on average, increases the prices of cigarettes sold by pack from P11.50 to P23.50 and will continue to increase each passing year as per evaluation.
Even with the increase in prices of cigarettes, Malacanang reports that the prices of cigarettes in the country are still low compared to the prices among other Asian countries where prices of tobacco products can rage up to P50 per pack.
The National Youth Commission (NYC), along with other survey companies released results that predict that the number of young smokers decrease consumption once cigarette prices increase, along with the decrease of cigarette consumption per day by smokers. The law is also considered a tool that would discourage smoking.
The original sin tax bill, which had been pending since the 1997 Congress, is seen as more of a health measure, as compared to the signed law, which would bring more income to the government.
Aquino explains that the signing of the Sin Tax Bill into Law is a means of giving health benefits to Filipinos, regardless of stature. The expected revenues from the increased tax will be used to fund health benefits for the poor and aid in renovating and constructing new hospitals. He deemed it an early gift to the Filipino people, emphasizing that life of each Filipino is sacred.
The Sin Tax Law has been in effect since January 1, 2013 with many cigarette vendors already abiding by it. But PMFTC, Inc., a major tobacco company in the country, released a statement that they have not increased the prices of their products and advise sellers of their products to sell at current recommended prices.
