Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

Gi 293

House Bill No.

Introduced by HONORABLE DANILO E. SUAREZ

EXPLANATORY NOTE

Taxation is arguably the most effective tool of ant type to control tobacco use. It is
among the policy mix being by different countries to reduce tobacco consumption and/or
generate revenues. In the Philippines, excise taxes for tobacco, cigar and cigarette
products were last raised in 2005 primarily ti index the tax rate with inflation and raise
more revenues for the government. The health issues were indirectly addressed through
the tax rate increase through the tax rate increase, but obviously not create a dent on
tobacco consumption.

Many view that the increase in the excise tax rate for tobacco are not enough to
correctly index the tax to inflation. Anti -smoking advocates view the increase as not
sufficient to really create an impact to prevent smoking-related diseases, and just allow
smokers, especially from the lower economic brackets, to just merely shift lower priced
cigars and cigarettes.

The Department of Health imparts that smoking is a major cause of heart disease,
stroke, impotence, hearing loss, impaired vision, loss of bone density and other maladies.
The government-mandated health warnings on cigarette packs and in advertisements
offer meager accounts of the health consequences of smoking. As a result, cigarette
smoke is the leading cause of preventable death in the country.

To really make taxation and reguiation as an effective deterrent to smoking, the
manufacturing costs to produce cigars and cigarettes should increase so as to increase
the price of these tobacco products. Hence this bill proposes to increase by 50% specific
tariff rates pertaining to tobacco (tariff heading 24.01 and 24.03), tariff heading 48.13
which describes cigarette paper and tariff line 5601.22.10 for wrapped cigarette tow or
filter rods. The measure primarily aims to really effect a decline in tobacco consumption
among users.

The price of maintaining a healthy population is high and calls for a strong political
will to impose regulations, which will redound to the benefit of the people. Taxation and
regulation, coupled with information dissemination, prioritization in budgetary allocation
and constant research in health, tobacco effects, etc.., will be the key to create a radicals
decline in tobacco use and the health maladies caused by smoking. It is earnestly hoped
that support and adherence to the health priorities of the nation will push for the early

passage of this bill.

DANILO E. SUAREZ
Representative
Third District, Province of Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Philippines

FIFTEENTH CONGRESS
First Regular Session

Core 293

HOUSE BLL WO.

lnwoduced by Honorable DaNILO EB. SUAREZ

aw act
INCREASING THW KATE OF DUTY ON DWPORTED TOBACCO,
CLOAREITE PAPER, TIPPING PAPER AND FILTER RODS USED LV
WALANG CIGARS AND CiGARETTSS, AMENDING FOR THE
PURPOSES CERTAIN TARIFF HEADINGS OF THE TARIFY AND
CUSTOMS CODE OF THE FHILIPPDIES, AS AMENDED

i the Hose of Representatives of

win bit:

Be it enacted by the 3.
the Philippines in Congress ¢

SECTION 1. Heading No. 24.01 and Heading No. 24.03 under

Chapter 24, Section IV of we rif and Customs Code of the
Philippines, as amended, are hereby amended vo read as follows:
| Rasa ot J ASEAN Counties |
nia. | Tus cooe Devevipuion os | ure Enjoying
et} concessions
seca a Uwe T caer
. o oo @& w
Hobuceo nt amnesia
201.1010 = Vagina ype, mci (207) ny ter iD, LABS
aud
(108 7) yori, LAS
aor anaTH
2011029 -Wiginm ape oxcmas cue (mm 7) 3 nay ler BLASS
and TH
(20s 7) Omyrorw tas
wor + aa TH
Badin -Daaemrcten (2007) ny orim tase
ana TH.
[205 7) 3 ntyter LASS

wor ‘aod TH,


Rate of

[ASEAN Countries|

| nag. | Tesi coe Beseripsion Year Enjoying
: an Saye | Sonsession
o @ ° a o © o
ouner manufactured tebseco and
aos runufactured tobacco Substiutes:
“homogenised” or “reconstuuiad”
obaces estracte and exsences
2403.10
ooacco supstiates in any proportion:
= Packed tr (ota sale
2403.10.11 Blanes tobacco [20871 S — Onlyfor 1D, 86
and TH,
(2008 7) 5 Onlyfor 10, 86
mort and TH.
2408.1018  ~Omner (2007) 5 Onlyfor 1D, SG
‘snd TH,
(20087) 5 Oniyfor 10, 86
ror and TH,
= Othat manufactures tobacco for okrette .
aking:
2408:1021 — Blanded tobacco (20087) 3 Onlyfor 19, 86
and TH,
(205 7) 5 Oaly for 1D, 96
wor sod TH
2408.10.25 {208 7] 3 Oalyfor 10,86
‘and TH,
(2057) 3 Oniyfor 1D, 86
Pe) and TH
20081099 ~ Omer {20087} 5 Onlyior 1D, 86
aod TH
[20057] 8 Only for 1D, 86
mort and TH,
= Omnse
2409.81.00 --"Homagenitad or teconsizutest tevsoco (20083) Only for 1D, 86
and TH
(2005 3] 8 Only tor 10, 96
ors ang TH.
2098 Osher “
2403.98.10 ~~ Teouoee waraets and essences (20083) © Except KH, LA,
aa, MY ang VI
(205 3] © Exropt KH, LA,
wor 6 ‘a MY and Vie


Rae of

ASEAN Courses

| Fi. Bescnplion year | uty cu ‘Enjoying:
_| a Ges Tce |, cmon
ic 2 oO o eo o o
2H0L 10.59 -Omnes, NOE reouteS ier 7) 3 Only for 10, LASS
end TH
j2008 7) 3 Ooty for 12, LASS
2007 “ ang TH.
youd -Towaece, pasty oF who stonmnisuipped
TADIIONG  ~Veoin ps, Mow one (2047) 3 Only for 1D, 86
ana TH,
(205 71 5 Only tor 10, 86
poo7 a and TH
2401.20.20 Wun typ2, 90K this cuwOG (20871 3 Only for 10, 86
and TH
(20087) 8 Only for 1D, $6
2007 uw and TH,
2401.20.30 (20271 5 Oniyfor 10, 86
sand TH.
120087) $ — Onlytor 10,86
2007 “ vend TH.
~Biurey PE 200871 3 Only for 10, 86
‘and TH:
(25 7) ‘Cnty for 10, $3
2007 n end TH.
Sts, Muroused (a7) 5 Onlyfer 1D. SG
TH
i205 7) S$ Onlyfer 10.86
wor 306 TH.
201 20.80 ~ Omnse, aoe Heerouros (27) 5 Only for 1D, $6
ang TH,
(2057) 8 Only for 1, 86
mor 6 ang TH,
2x91.80—~ Tobseeo refuse:
2301.30.10 ~ Toosese stems (20007) 3 Only tor 1D, LASS
angTH
7 3 Only forD, LASS
“ and TH.
24019080 Cthar (2087) 3 Onlyfor 1, 8
"> and TH,
(7057) 3 Onysfor 10, 86
007 a and TH,
eld ARK XX KK xx x


iz

og. | Tarif cose Dereription Your
el
w 2 o @ o
2409.89.90 — Manutaotwed lousece substitutes 120083] © Exo@pt KHLA,
aid, MY ane VN
[2083 0 Except KH.LA,
2007 6 ‘mim, MY snd VIE

SEC.2. Heading No. 48.13 under Chapter 48, Section X of the
aril and Customs Code of the Philippines, as amended, is hereby
amended to read as follows:

| rag | taitrcoae Desert vex | Enon
| | ee] concession

—_: - en
wo 2 @ ® o o
sexs Cigarette paper, enette! of nol cul te size oF In

ne iovn of aoowlets oF ees.
4813.10.09 - Inte ov of Booklets o eibee (20051 3 Except Kit and La
(2005 5] 3 Except KH snd LA,
nw 8
ris of 3 wisn not eicesting $ oma (20:53 3 Except Kr eng LA,
[2055] 3S Except kang LA
mor 8
3813.90.00 - Other (20085) 3 Excopt KH and LA
{20058} 3 Except KH snd LA
wor 8
oe xxx = ~ = ws

SEC.3. Heading No. 56.01 under Chapter 56, Section XI of the
aril and Customs Code of the Philippines, as amended, is hereby
amended vo read as follows: -

scot ‘Wading of vite materiats ana anictes
mereot;cexlle tves, not exceuding Sin in
lenge (Hoek), teat cust and ill naps,


SEC. 4. Implementing Rules and Regulations — The Secretary of Finance shall,
upon recommendation of the Commissioner of the Bureau of Customs, promulgate the rules
and regulations necessary for the effective implementation of this Act.

SEC. 5. Repealing Clause — Alll laws, executive orders, decrees, rules and
regulations, and other issuances or parts thereof inconsistent with the provisions of this Act, are
hereby repealed or modified accordingly.

SEC. 6. Effectivity — This Act shall take effect after fifteen (15) days from its
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation whichever date comes earlier.

Approved.