TOBACCO TAX HIKE BREEZES THROUGH 2ND READING IN HOUSE
MANILA -- The House of Representatives on Wednesday approved on second reading a measure seeking to increase the excise taxes on tobacco products.
Lawmakers gave their nod on House Bill No. 8677 only a day after it hurdled committee level.
The proposal seeks to increase excise tax rates for tobacco by PHP2.50 every year starting July 2019 until 2022.
The Tax Reform for Acceleration and Inclusion (TRAIN) law mandates that the duty on tobacco products will be raised to PHP35 next year.
The bill seeks to raise the cigarette excise tax rate to PHP37.50 per pack by July 2019, PHP40 for 2020, PHP42.50 for 2021, and PHP45 for 2022.
After that, the rate would be raised 4 percent every July annually starting 2023.
Revenue from the excise tax on tobacco, as well as alcohol products, will fund the proposed Universal Health Care (UHC) Act. (PNA)
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