Health group to Senators: Reject House proposal that lowers Sin Tax rates in coming years

Public health advocacy group, HealthJustice Philippines, urged Committee on Ways and Means Chairman Senator Win Gatchalian to follow through on his position to effectively block House Bill 11360, described as the “Sin Tax Sabotage Bill”, and reject tobacco industry manipulation until the 20th Congress. 

HealthJustice also backed Gatchalian’s pronouncement at the hearing on Monday to stop further deliberations of a rollback in taxes for tobacco products in the bicameral conference committee. 

“We challenge Senator Gatchalian to stand his ground and fight for the health of our nation and our youth until the Sin Tax Sabotage Bill is completely off the table. We urge that he and other health champions in the Senate will strongly push back against tobacco industry influence and interests,” said Dr. Jaime Galvez Tan, Board Member of HealthJustice and former Health Secretary. 

Galvez Tan continued, “We object to lower tax rates on tobacco products. It is a misaligned solution to curb illicit tobacco trade and shortfalls in tax revenues. Rather, we fear it will tragically lead to an upsurge in tobacco consumption and hike the risk of noncommunicable diseases (NCDs) including cancer and heart disease.”

At the Senate hearing on Monday, HealthJustice also highlighted the importance of harmonizing tax rates for tobacco as well as vapor products. 

“We also support the move to impose a flat tax on all vapor products, regardless of nicotine content. We recognize this as a step forward. To be effective, tobacco tax systems and administration must be efficient, predictable, and easy to enforce,” emphasized Atty. Faith Laperal, Executive Director of HealthJustice.

HB 11360 was hastily passed on 3rd and final reading at the House of Representatives in February 2025 proposing alternating tax rate increases on tobacco products by only 2% and 4% starting 2026 to 2035, much lower than the 5% annual increase under the current Sin Tax Law. 

“Far from promoting efficiency, the proposed alternating tax increases complicates what should be a straightforward fiscal policy tool. It increases the likelihood of misreporting, under-declaration, or compliance delays. Retaining a uniform annual rate or inflation-indexed mechanism would reduce administrative burden and safeguard against industry manipulation,” Atty. Laperal added.

Meanwhile, HealthJustice trusts Department of Health Secretary Teodoro Herbosa to deliver on his commitment for urgent measures to address the damage caused by tobacco products after he was elected President of the 78th World Health Assembly just two weeks before World No Tobacco Day. 

“The scourge of tobacco remains one of the most persistent and preventable threats to global health, silently undermining progress across generations and contributing to the vast majority of noncommunicable diseases that now account for most deaths worldwide. As a global community and as champions of health we are called to urgently act, not simply with sympathy but with boldness and resolve to address these long-standing health challenges,” said Herbosa in his speech.

Herbosa further stated, “We pledge to align our investments with primary health care to strengthen subnational and local systems and to confront the root causes of illness and reinforce interventions addressing social determinants of health.”

END

Contact person/s: 

Mariz Amante Wee

Communications Officer, HealthJustice 

+63998-885-1080 / +974-669-86655

stelamarieamante@gmail.com

Anelle Cortez 

Project Coordinator, HealthJustice

+639178139696

anelledc@gmail.com 

###

Patricia Loren M. Reyes
Communications Officer
+639760085498
HealthJustice | healthjustice.ph
Healthy Philippines Alliance | phealthalliance.ph