MANILA, Philippines—Everybody knows smoking will bust your lungs. A proposed tax increase on your next nicotine fix will bust your wallet as well.
Citing the “Obama model,” the Department of Health (DoH) Monday said increasing cigarette tax by P4.50 (or 10 US cents) per stick—that’s P90 for every 20-stick cigarette pack—was one of the ideas that cropped up during a meeting of health officials with officers of the Framework Convention on Tobacco Control Alliance Philippines (FCAP), an anti-tobacco advocate.
The so-called Obama model refers to US President Barack Obama, who signed a bill into law in February 2009 increasing the federal
tax rate of cigarettes from $0.39 to $1.01 per pack to provide for the health
insurance of poor children.
There are 17.3 million smokers among the Philippines’ 90 million population. One of those who apparently can’t quit is President Benigno Aquino III.
If the idea blossoms in the Philippines, funds raised from the increase in cigarette taxes will partly be used to cover about 5 million poor Filipinos in the health
care insurance system, an objective of President Aquino’s administration.
If the proposed increase is implemented, the cost of a cigarette stick would range from P5.50 to P7.50 while the price of a 20-stick cigarette pack would jump to between P97 and P190, according to the estimates of health and church activists seeking curbs on smoking."