Govt mulls higher taxes for cigarettes

THE CITY government will soon ratchet up the pressure on tobacco companies as it mulls imposing higher taxes on tobacco products, seven years after passing the anti-smoking ordinance in 2002.
Councilor Peter Laviña, chair of the committee on trade, commerce and industry, said the campaign of the city to educate the public on the hazards of smoking has been successful but that’s not enough if the levy on tobacco products remains low.
Making cigarettes expensive is another way to encourage the public, especially the youth, against taking up what would become a very expensive vice. The proposed rate of increase on tobacco products will be discussed further with the stakeholders in a committee hearing next year.
Data from Department of Health, the country’s tobacco excise tax collection had only a total of P199.61 billion from 2000 to 2008 with an average of government earnings of P23.26 billion annually. The health care and economic cost which were being spent on people who had smoking-related illnesses, however, was higher with a total of P1.62 trillion since 2000 up to 2008.

Laviña said there should be a tight ordinance that could strongly discourage minors on buying tobacco products. “The tobacco-related illnesses will rank number one on the cause of death next year if we would not do anything about this,” he said.
The health agency further estimated around 87,600 Filipinos per year die from smoking-related illnesses like lung cancer and chronic obstructive pulmonary diseases, coronary heart disease, stroke, and cancer of the lips, nose, or larynx.
Laviña said the proposed amendment on the anti-smoking ordinance also prohibits vendors from selling the cigarettes by retail as well as peddling them in the sidewalk and the streets.
The anti-smoking ordinance states that “it shall be unlawful for any person to smoke or allow smoking in a public utility vehicle, government-owned vehicle or any other means of public transport for passengers, accommodation and entertainment establishment, public building, public place, enclosed public place, or in any enclosed area outside of ones private residence, private place of works, cars owned by the government or duly designated smoking areas, within the jurisdiction of Davao City.”

Laviña said the amendment of the ordinance will not kill the business of the sidewalk vendors as they can still sell candies, biscuits and other food items.
Vendors’ associations will be invited by the committee, which already gathered position papers from the anti-smoking task force and the tobacco companies.
In a position paper of the tobacco industries from Manila, the proposed amendment on the anti-smoking ordinance will severely affect their business. “The tobacco industries opposed on the proposed amendment especially when it comes to their economic concerns. They even questioned the local government on why they are eager to impose higher taxes while the national government did not even propose as such,” he said.
Dr. Domilyn Villareiz, chairperson of the city’s anti-smoking task force, said the proposed amendment on the existing ordinance could make the city “100 percent smoke-free.” This does not, however, the task force is not doing well in implementing the anti-smoking ordinance, she said.
Villareiz said their enforcement is very good. There are now nine establishments with approved smoking areas this year, she said.