President Rodrigo Duterte signed into law the Republic Act No. 11346, Tobacco Tax Law.
This law raises the cigarette tax adding P10 from the first year of implementation. Making the current P35 to P45. It will also have a P5 follow up increase every year until it will reach P60 in 2023. Then a 5% increase annually starting 2024 onwards.
- January 1, 2020 – P45/pack
- January 1, 2021 – P50/pack
- January 1, 2022 – P55/pack
- January 1, 2023 – P60/pack
- January 1, 2024 onwards – 5% indexation
While for heated tobacco and vapor products, P10 will be added to every 10 ml.
“To address the urgent need to protect the right to health of the Filipino people and to maintain a broader fiscal space to support the implementation of the Universal Health Care Act, the President has signed into law HB (House Bill) No. 8677/ SB (Senate Bill) No. 2233 Increasing the Excise Tax on Tobacco Products,”
Medialdea said in a message to reporters.
The tax collected from the said law will go for the implementation of the Universal Health Care program.