un--Nation
t'lOl{DAY, SEPIE]'IBER 23, 2019
House to question Senate's proposed tax
on vaping devices, prefers to tax refills
REPMSENTATIVE Jose Ma.
Clemente S- Salceda, t}le Ways
and Means committee chair
from Albay\ second district,
rejected the Senate's proposal
to impose a2o7o excise taxone-
cigarette devices, salng that he
prefers to tax consumption,
"You tax the consumption...
Kung di nabibili 'yung device, mi-
naho lan mo'yung deice, makiki-
hiram... baka mqkatransfer /ra pa
ng sakft (If the device is taxe4 it
willbecome more expensive, and
might encourage the borrowing
of devices, which might be a risk
for disease transfer)" Mr. Sal-
ceda said in a chance interview at
the Palace last week.
Senator Emmanuel D. Pac-
quiaot Senate Bill No. 987 will
increase rates to P45 per pack
Illusir*aqt\{brld
of heated tobacco products and
per milliliter of vapor products
beginning in 2020. This is to
increase by P5 per year until it
reaches P6O in 2023; and by 5%
everyyear thereafter.
The proposal will also im-
pose a 20% excise tax on e-
cigarette devices based on the
u/holesale price or the value of
impoItation.
Fi;[ance Undersecretary
Karl Kendrick T. Chua has said
the Senate's version of the e-
cigarette tax could generate
P3.2 billion in the first year of
implementation, much higher
thau the equivalent House bill!
projection of PL2 billion.
House Bill 1026, which also
provides for higher taxes on
alcoholic beverages, received
' e4ee
third and final reading approval
in that chamber on Aug. 20.
Revenue from the measure will
help frll the P62-biltion tunding
gap for RepublicAct No 11223, or
t}le Universal Health Care CIHC)
Act, due to roll out in 2020.
Thc tax law, which will be-
-
come RA No. u346 ifpassed, will
gradually increase excise tax on
tobacco products to P6O perpack
by 2023 from P35 curenfly. The
same law introduced the follow-
ing rates on lapor products: PIO
on l0 milliliter vapor products,
P2O on 20 ml, P3O on 30 ml, P4O
orl ,trO
ml, P50 on 50 ml and so on.
The Philippine e-cigarette In-
dustry Association (PECIA) and
the Vapers Philippines (Vapers
PIt said in August that taxing
e-cigarette and vapor products
- rl/cr 4
on par with regular cigarettes
will not curb tobaclo use and
will discourage use of tleir "less
harmful alternatives" if they
were taxed at the same rate.
They urged legislators, to
consider studies which found
that e-cigarettes and vapor
products are a "signifi cantlyless
harrnfuI alternative-"
"Heavy taxes on reduced-
risk products will only result in
smokers sticking it out with ion-
ventional cigarettes instead of
switching to less harmful nico-
tine products," Vapors PH said.
PECIAalso pushed for apub-
lic consultation on proposed
tax legislation which they said
will be a venue to discuss other
measures to reduce tobacco use.
* llrjay L. Balinbin