Tobacco.org

TORT: Support from big tobacco 

The planned use of additional cigarette taxes for targeted spending on children’s health care is a perfect example of how smokers themselves, through their support for additional taxes on their vice, can contribute to public welfare. A recent study by the government think tank Philippine Institute for Development Studies (PIDS) indicates that the proposed restructuring of local taxes on cigarettes and liquor can prospectively raise up to P60 billion in additional revenues for the government every year.

Simulations by the government also show that the proposed increase in “sin” taxes, now pending in Congress, can have the biggest impact on revenue collection—an estimated P22 billion in the first year of implementation, another P30 billion to P40 billion in the second year, P40 billion to P50 billion in the third year, and P60 billion to P70 billion annually thereafter. And while Congress contemplates this proposal, the Executive should likewise move to make efficient, transparent, and accountable the collection of taxes on cigarettes and perhaps liquor.

If only smokers can support the noble aims of efficient taxation of their vice, then there shouldn’t be any reason for cigarette makers and importers, and even tobacco farmers as well as their representatives in Congress, to fight efforts for better—if not higher—tax collection and cigarettes and tobacco products. How can any of them begrudge or fight efforts to improve health care particularly for children?

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