How much is the sin tax added to alcohol and e-cigarettes?
President Rodrigo Duterte signed a law that increased the taxes on alcohol and e-cigarettes in the market.
The President signed Republic Act 11467 into law yesterday.
Upon its implementation, additional P35 to P50 will be added to sin taxes on alcohol and P25 to P45 for e-cigarettes this year.
Rates based on the bicameral conference report
Alcohol
- Fermented alcohol (beer) – P35
- Distilled spirits – P42, plus an ad valorem tax of 22%
- Sparkling and still wine – P50
Tobacco
- Heated tobacco products (pack of 20s) – P25
- Salt Nicotine vapor product – P37
- Freebase vapor product (vape) – P45
How much is the sin tax added to alcohol, e-cigarettes?
After 2020, here are the new tax rates for the said products until 2023:
Alcohol (with a 6% indexation rate after 2023)
- Fermented liquor
- 2021 – P37
- 2022 – P39
- 2023 – P41
- Distilled spirits (with 22% ad valorem tax)
- 2021 – P47
- 2022 – P52
- 2023 – P59
Tobacco (with a 5% indexation rate after 2023)
- Heated tobacco products
- 2021 – P27.50
- 2022 – P30
- 2023 – P32.50
- Salted nicotine vapor products
- 2021 – P42
- 2022 – P47
- 2023 – P52
- Free base vapor products
- 2021 – P50
- 2022 – P55
- 2023 – P60
“I remain confident that the law’s passage is a good step forward to discourage Filipinos, especially the youth, from taking up dangerous vices, thereby guiding them towards making healthier lifestyle choices,” said Senator Pia Cayetano in a statement on Wednesday.
The higher sin tax law is expected to bring at least P22 billion in revenues, of which 60% will go the implementation of the Universal Healthcare law. It will offer VAT-free medicines for diabetes, mental illness, kidney diseases, tuberculosis, and cancer.