DOH bucks 2-tier tax system on cigarettes

The Department of Health (DOH) has expressed opposition to House Bill No. 4144, which aims to revive the two-tier excise tax structure on cigarette products that was earlier approved by the House of Representatives.

“We are openly opposing the two-tier rate proposal because it will not be beneficial to those people who would like to quit smoking,” Health Secretary Paulyn Ubial said.

In an interview, Ubial said having a two-tier tax system would just result in smokers shifting from expensive to cheaper brands.

“It does not matter if they are smoking cheaper or expensive brands because the effects on their health are the same,” she said.

Republic Act No. 10351 or the Sin Tax Reform Law was passed in a bid to make tobacco products less accessible to the public, especially the youth and the poor.

Instead of bringing back the two-tier tax structure, the health chief said it would be better to implement an increase in the price of tobacco products.