Sin Tax Hike Impact On Philippines Tobacco Industry


By: Ignatius --

03 August, 2012

Sin Tax Hike Impact On Philippines Tobacco Industry

The Government of Philippines amended the Bill HB 5727 in June 2012 which will increase the Sin Tax, the tax that is levied on the sin products like alcohol and tobacco. The government believes this would facilitate reduction in consumption of tobacco as well as increase its revenue generated from taxes levied on tobacco products. Philippines has one of the highest smoking prevalence in Asia with 48% and 9% of men and women taking up this habit. A survey conducted by National Youth Commission (NYC) of Philippines in 2010 revealed that among the 5.89 billion teenagers from ages 13 to 15 years nearly 39% have taken up this habit. Philippines with a population of 92.34 million is estimated to have 17 million smokers. Philippines incurs nearly PHP 500 billion annually in the form of healthcare spending towards tobacco related diseases. Philippines is one of the countries in Asia that has cheapest prices of tobacco products as the taxes levied are very less. Average taxes levied on Tobacco products in Philippines are very less as the WHO advocates a 70% tax be levied upon tobacco products. According to a research, the real price level of cigarettes in the country decreased by18 % from 2000 to 2010.


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