(January 4 2017, Manila, Philippines and New York, USA) – Vital Strategies, a global health not-for profit organization, welcomes the implementation of a uniform rate of tax on all cigarettes sold in the Philippines, which comes into effect from today. The rate of excise tax applied to cigarettes has also increased in recent years, and will be P30 per pack in 2017, with further increases of 4 percent per year going forward. In spite of this progress, tobacco remains highly affordable in the Philippines and further tax increases will be necessary to deliver greater reductions in smoking prevalence.
José Luis Castro, President and Chief Executive Officer of Vital Strategies said:
“We congratulate the government of the Philippines for resisting attempts throughout 2016 to delay and derail this uniform tobacco tax rate. This is a further important step in the Philippines to improve health while also raising funds to increase access to health care.
“An effective tax strategy – including a uniform rate of tax on all tobacco products – can play a significant role in reducing tobacco use, especially among children and youth. Despite the move on tax, the price of cigarettes remains unacceptably low and therefore too affordable, impacting the health of millions through direct use and exposure to secondhand smoke. High taxes that reduce the affordability of tobacco products in real terms are more effective in encouraging current users to cut down and quit, and in deterring youth from initiating tobacco use.
“We urge the Philippines’ government to build upon its tobacco control work in recent years and – as suggested in recent media coverage – to pass legislation to implement tobacco taxes at levels recommended by the World Health Organization. In conjunction with proven tobacco control policies like graphic health warnings, national mass media tobacco control campaigns like those supported by Vital Strategies*, and the planned national smokefree law, higher taxes will help to deliver real reductions in smoking prevalence and improve public health.”
*In October and November 2016, Vital Strategies supported the “Protect Your Family, Stop Smoking!” campaign, which aired on national television and regional radio channels
Note to Editors
The Burden Of Tobacco Use In The Philippines
The Department of Health (DOH) has identified tobacco as the primary risk factor in the Philippines for a range of non-communicable diseases. This costs the Philippines’ economy more than USD3.95 billion (Php188 billion) (Dans et al., 2012) in health care costs and productivity losses.
According to the Global Adult Tobacco Survey, the Philippines (GATS), more than 17 million adult Filipinos smoke cigarettes. Almost half of adult males and 9 percent (2.8 million) of adult females are current smokers. Moreover, 23 percent of Filipino adults – 38 percent of men and 7 percent of women – are daily tobacco smokers. The Tobacco Atlas notes that tobacco-related cases account for 19.6 percent of adult male deaths and 9.4 percent of adult female deaths – higher than the average in other middle-income countries. It is estimated that more than 71,850 Filipinos – eight people every hour – are killed by tobacco-related diseases every year. The Philippine Cancer Society estimates that around 3,000 non-smoking adult Filipinos die every year of lung cancer as a result of inhaling second-hand smoke.
When cigarettes are taxed at different rates based upon the size of the stick, the formulation of the product, or whether the producer is local or multinational, the tobacco industry can employ tactics to promote the continued use of existing products or to encourage people to switch to lower taxed products. The industry’s only goal is to sustain tobacco consumption and protect its profits, in opposition to governmental goals – detailed in the 2030 Agenda for Sustainable Development – of reducing smoking prevalence and improving health.
About Vital Strategies
Vital Strategies is a global health organization that seeks to accelerate progress on the world’s most pressing health problems. Our team combines evidence-based strategies with innovation to help develop and implement sound public health policies, manage programs efficiently, strengthen data systems, conduct research, and design strategic communication campaigns for policy and behavior change. To find out more, please visit vstrategystage.wpengine.com or Twitter @VitalStrat.
For further information or to arrange an interview with a Vital Strategies public health and tobacco control expert, please contact Tracey Johnston, Vital Strategies, at +44.7889.081.170 or tjohnston@vitalstrategies.org