MANILA, Philippines — The Department of Finance (DOF) is still pushing for the passage of the tax bill on alcohol and electronic cigarettes even as President Duterte imposed a ban on the importation and use of these products in public places.
In a text message to reporters, Finance Secretary Carlos Dominguez said the DOF is waiting for Malacañang to issue an executive order on the vaping ban to provide more clarity on the directive.
“We are waiting on the EO on this matter from the Office of the President. In the meantime, we urge the legislature to pass the measure that is pending their approval,” Dominguez said.
Duterte last Tuesday ordered a ban on electronic cigarettes and tobacco alternatives, days after the Philippines confirmed the first case of vape-related illness.
Prior to the directive, the DOF submitted to Congress its proposal to increase the excise tax on e-cigarettes to P45 per milliliter, making them at par with regular cigarette packs.
Together with the proposed adjustment in alcohol taxes, this forms part of Package 2 Plus of the administration’s Comprehensive Tax Reform Program.
Last Aug. 20, the House of Representatives approved on third and final reading its own version of the measure, as contained under House Bill 1026.
Senate Bill 1074, meanwhile, was also certified as urgent by Malacanang before the announcement of the ban.
The DOF said proceeds from the incremental taxes on alcohol and e-cigarettes would be used to fund the government’s Universal Health Care program which would require P257 billion in 2020. Currently, the program has a funding gap of around P45 billion.