A study conducted by the University of the Philippines has found the current cigarette tax structure to be ineffective in curbing smoking.

“The current cigarette tax structure under Republic Act No. 9334 or the 2005 Sin Tax Law is a weak tool for tobacco control. Instead of the smokers giving up nicotine addiction because of the added excise taxes on cigarettes, these smokers switch to a cheaper brand. The law is not serving its purpose of curbing smoking,” Health Secretary Francisco Duque reacted to the recent study which was conducted by the University of the Philippines School of Economics.
R.A. 9334 provides for a four-tiered specific tax system depending on the classification of cigarettes and tobacco products. Cigarettes are classified into four categories: very high priced, high priced, medium-priced and low-priced.
“If we are really serious in considering tobacco taxation as a public health intervention, then the present tax structure should be abolished and replaced by a single unitary excise tax rate with prices increased to significant levels,” Duque said.
Increasing the prices of all cigarette brands, Duque continued, will even discourage consumption of cheaper brands. This can result in poor people spending more for food and education. (sra)