Senate Ways and Means Committee Chairperson Sherwin Gatchalian on Monday vowed to block any attempt to reduce excise taxes on cigarettes, arguing that it would not solve the country’s cigarette smuggling problem.
During a Senate hearing on House Bill 11360, which proposes lower excise tax rates for cigarettes, tobacco, heated tobacco, and vapor products, Gatchalian stressed the measure would not effectively address illicit trade.
“What we are after in the committee is to combat and eliminate illicit trade. Illicit trade creates a lot of problems in terms of revenue collection and health outcomes. Illicit trade is the devil. And in those last three hearings, we didn’t see that lowering taxes [on cigarettes] can combat illicit trade effectively,” he said.
“Habang ako ang chairman ng ways and means committee, hindi ko papayagan na maipasok iyang cigarette component in the bicameral conference committee. With all due respect to my counterparts, and I am putting this on record for our House counterparts… kung iyan ang i-iinsist nila, mag-usap na lang tayo 20th Congress because we will not allow that,” Gatchalian added.
Under House Bill 11360, the current excise tax rate of P66.15 per pack of cigarettes will be adjusted with a 2% increase every even-numbered year starting January 1, 2026, and a 4% increase every odd-numbered year from January 1, 2027, until December 31, 2035.