Proposed tax restructurings for cigarettes, e-cigarettes, and heated tobacco products must prioritize protecting young Filipinos against rising nicotine use, House Ways and Means Committee Chairman and Marikina City Rep. Miro Quimbo said.
Opening discussions on sin tax reforms under the ProGRESS tax package, Quimbo noted that while the measure aims to offset personal income tax adjustments, public health remains the primary driver, “this is really a tax measure driven primarily by public health considerations.”
Quimbo cited 2024 Global Youth Tobacco Survey findings showing youth tobacco use rose to 16.2 percent in 2024 from 12.5 percent in 2019, alongside a climb in youth e-cigarette use to 26.7 percent.
He also pointed to Food and Nutrition Research Institute data showing youth smokers doubled to one million in 2023.
“These data show the need to rationalize the current tax treatment of cigarettes, vapor products and heated tobacco products, particularly given the disparities in how these products are presently taxed,” Quimbo said.
The committee chairman emphasized that policymakers must carefully determine tax rates that achieve health goals without triggering unintended consequences like boosting black market trade or hurting tobacco-dependent communities.
“We need to ask what tax rates will actually achieve our public health objectives,” Quimbo also said.
“If rates are set too low, we risk making these products more accessible, particularly to young people. But if rates are set too steeply, we also have to consider whether this could further encourage illicit trade, undermine legitimate industries and tobacco-growing communities and eventually, weaken both our health and revenue objectives,” he pointed out.
Quimbo urged lawmakers to consult fiscal experts, economists, and health advocates to find an equitable tax framework.
“Gaya sa dalawang huling meetings natin, kailangan natin hanapin ang tamang balanse,” he said.
Quimbo said that the hearings will shape long-term public habits and national health outcomes.
“With these proposed sin taxes, we are deciding what behavior our tax system will encourage and what kind of future we want for the next generation of Filipinos,” Quimbo explained.