Health advocates push for higher sin tax to curb alcohol consumption

Several health advocates on Tuesday called for the increase of excise tax on alcohol beverages in a bid to reduce the number of Filipinos who consume these products and protect them from the health risks, or even potential death, resulting from excessive alcohol drinking. 

At a press conference, Action on Smoking and Health Philippines executive director Dr. Maricar Limpin said that alcohol consumption could lead to non-communicable diseases such as liver cancer, cirrhosis, and cardiovascular disease. Aside from this, she said that the vice could also cause injuries or vehicular accidents. 

“When you consume any alcohol drink, basically you are consuming ethanol, which is actually a psychoactive and toxic substance that can cause dependence,” Limpin said. 

Based on the Global Burden of Disease Health Metrics in 2021, the Department of Health (DOH) said that high alcohol use was one of the top risk factors contributing to combined death and disability in the Philippines.

In the same year, 3.11% of deaths in the country were directly attributed to alcohol use, translating to about 27,477 of Filipino who died because of it. 

DOH’s 2023 study also showed that 56.7% of Filipino adults believe that they can drink a little alcohol without any health risks, while 43.5% of others believe that drinking a moderate amount of alcohol is actually good for their health. 

“This knowledge level proves that the work on alcohol use prevention and control must be strengthened, to increase awareness and highlight the evidence that there is no safe level of alcohol use,” Health Secretary Ted Herbosa said in a statement. 

To help address this, Action for Economic Reforms (AER) Fiscal Policy Team Lead AJ Montesa said that a law mandating the raise on excise tax annually should be passed in order to achieve the global target of reducing the harmful use of alcohol by 20% come 2030. 

“If we are to hit our target that we committed for 2030, we would need to increase the price by around 6.5% per year… So it's not a one-time increase. And then at the same time, we would need that price increase to translate actually to double the tax—-meaning the tax would be around 13% [increase],” he said. 

Montesa also believes that individuals with low income and the youth will be mostly affected should the alcohol taxes be increased. 

“‘Pag tinaas mo ‘yung presyo ng alak, sila ‘yung mas may tendency na bawasan din ‘yung pag-konsumo nila,” he said. 

(When you raise the price of alcohol, they have the tendency to reduce their consumption.)

However, in January, Finance Secretary Ralph Recto said he will not pursue the imposition of additional taxes, considering the high inflation environment. 

In 2020, then President Rodrigo Duterte signed Republic Act No. 11467, increasing excise taxes on alcohol products and imposing new duties on heated tobacco products.

With this, distilled spirits such brandy, gin, vodka, tequila, and whiskey would be charged a specific tax of P42 per proof liter, on top of a 22% tax representing excise and value-added taxes. 

Levies increased to P47 per liter in 2021, P52 per liter in 2022, P59 per liter in 2023, and P66 pesos in 2024.

On the other hand, taxes on beer and fermented liquor hiked to P35 per liter in 2020 and increased by another P2 per liter every year starting 2021 until 2024.—AOL, GMA Integrated News