The National Tobacco Administration (NTA) is supporting a moratorium on tobacco excise tax hikes, citing its potential to curb the growing illicit cigarette trade.
NTA Administrator Belinda Sanchez argued that pausing tax increases for 2026 would stabilize the market, reduce price disparities, and help legitimate manufacturers regain competitiveness, benefiting local tobacco farmers.
However, the House of Representatives passed House Bill 11360 on the second reading, replacing the proposed moratorium with an alternative tax scheme that adjusts rates biennially until 2035.
The Department of Finance (DOF) remains open to discussions, acknowledging that the government has lost approximately P50 billion in revenue due to illicit trade.
Meanwhile, the Bureau of Internal Revenue (BIR) has struggled to meet its tobacco tax collection targets, with illegal cigarettes and the transition to vape products contributing to the revenue shortfall.
Source: PhilNews24 | February 3, 2025
