The House of Representatives’ Committee on Ways and Means on Tuesday passed a bill increasing the unitary excise tax on tobacco products.
The committee, chaired by Nueva Ecija 1st District Rep. Estrellita Suansing, approved HB 4575 authored by Rep. Joey Sarte Salceda of Albay and HB 6648 by Rep. Angelina Tan of Quezon.
Suansing said the committee agreed on the unitary excise tax on cigarettes P35 per pack by January 1, 2019, and P37.5 by July 2019, P40 by July 2020, P42.5 by 2021, and P45 by 2022. This will be followed by a 4 percent increase annually every July after that.
From the original excise tax of P30 in 2017, the Tax Reform for Acceleration and Inclusion Law raised the excise tax on tobacco to P32.50 on Jan. 1, 2018, P35 on July 1, 2018, and shall increase to P37.50 on Jan. 1, 2019, and P40 on Jan. 1, 2020. The excise tax shall increase annually by 4 percent from Jan. 1, 2024 onwards.
Suansing said the House leadership is expected to pass the bill on final reading before Congress goes on break on Dec. 14.