Gov't seeks higher tax on e-cigarettes


Posted at Nov 01 2019 10:27 AM

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MANILA -- Taxes on e-cigarettes should be at par with regular tobacco products to help curb smoking and raise funds for universal healthcare, health and finance officials said.

Bringing the tax on vape products "to a level of parity" with cigarettes will generate P300 billion over 5 years, said Finance Assistant Secretary Tony Lambino.

"The higher, the better," Health Undersecretary Eric Domingo said of the tax on e-cigarettes.

"We want young people not to even start the habit of drinking and smoking," Domingo told ANC's Early Edition.

The health and finance departments are pushing for higher liquor taxes after successfully passing a bill that increased taxes on regular cigarettes.

Starting January 2020, the cost of cigarettes will rise to P45 per pack from P35 and will be incrementally increased until it reaches P60, after which the tax rate will be indexed to inflation.