33 Groups Bat for Higher Excise Tax on ‘Sin Products’

By MARVYN BENANING
September 24, 2010, 12:07pm

MANILA, Philippines — Thirty-three so-called civil society organizations (CSOs) have asked Congress to impose higher taxes on locally-produced and distributed cigarettes and alcoholic beverages in a bid to raise revenues and save lives wasted on addiction to vices.

Crafted mainly by the Action for Economic Reforms (AER), the proposal seeks to increase excise taxes on so-called “sin products” but not necessarily increase luxury taxes for items that are generally purchased by the  high and the mighty.

The AER statement said the 33 groups were emboldened in demanding an increase in excise taxes upon hearing that President Benigno S. Aquino III, a smoker, supports the idea.

“We believe that increased excise taxes, particularly on tobacco and cigarettes, will not only address the economic costs by curbing tobacco usage, but also increase revenues for the government,” the statement read.

“Year after year, tobacco-related diseases claim the lives of millions. In the Philippines alone, almost 90,000 die every year (or about 10 Filipinos die every hour) from smoking-related diseases. Increasing taxes of tobacco products is the most effective means to reduce tobacco consumption. Studies consistently show that increase in tobacco prices would result in a significant reduction of tobacco use such that a 10 percent increase in price would reduce demand by about 8 percent in low and middle income countries,” the statement argued.