MANILA, July 25 (Reuters) - Philippine President Rodrigo
Duterte has signed a law further raising taxes on tobacco
products to fund the government's healthcare projects, a cabinet
official said on Thursday.
It was the second time Duterte's administration had raised
levies imposed on cigarettes to discourage public consumption.
The new law will "address the urgent need to protect the
right to health of the Filipino people," Executive Secretary
Salvador Medialdea told reporters.
Higher taxes on cigarettes will generate an estimated 129.9
billion pesos ($2.54 billion) over the next five years, Finance
Assistant Secretary Antonio Lambino told Reuters.
Philippines' national healthcare project will cost an
estimated 1.43 trillion pesos in the first five years of
implementation, more than two-thirds of which will be covered by
the national budget.
But higher excise taxes could cut into sales of the major
Philippine tobacco companies, Philip Morris PM.N and Japan
Tobacco Inc 2914.T , and e-cigarette manufacturers starting
next year.
Duterte, who had said he acquired Buerger's disease because
of smoking, imposed a nationwide smoking ban in public places
and on many occasions expressed disdain over the habit.
"Who smokes here? They should be exterminated from the face
of the earth," Duterte said in his annual state of the nation
address on Monday.
Duterte asked lawmakers to pass tax laws that would fund his
ambitious infrastructure programme.
($1 = 51.0550 Philippine pesos)