Health reform advocates, civil society organizations, and government representatives recently gathered in Quezon City for a public forum titled “Sin Tax Strategies for a Healthy Philippines: A Public Forum on the Past, Present and Future of Sin Tax Reform.”
The event aimed to assess the performance of Sin Tax Reform laws passed from 2012 to 2020, focusing on their impact on health outcomes, revenue generation, budget allocation for health and tobacco-producing local government units (LGUs) and illicit trade. The forum also explored potential strategies for future sin tax reforms.
Co-organized by iLEAD, Vital Strategies for Tobacco Control Division, the Sin Tax Coalition and Action for Economic Reforms (AER), the forum forms part of the initiative “Strengthening Budget Coalitions to Support the Philippine National Tobacco Control Strategy through 2030.”
The initiative aims to empower advocacy coalitions to engage in the national budget cycle and secure funding for the National Tobacco Control Strategy (NTCS) through 2030. Additionally, the forum sought to improve future sin tax reforms by sharing three key documents:
- A Performance Review of Sin Tax Reforms from 2012 to 2020: This working paper, authored by Kenneth Isaiah Ibasco Abante, AJ Montesa, Lyonel Tanganco, Viviane Apostol, and Patrick Acupan, assessed the effectiveness of past sin tax reforms.
- An Investment Case to Fund the National Tobacco Control Strategy (NTCS): Written by Robert M. Sanders, Jr. and Zy-za Nadine Suzara, this document explored potential funding mechanisms for the NTCS.
- Alaga sa Baga: Guidebook on Local Tobacco Control Programs for Local Governments and Citizens: Authored by Jeshamar Calinao Villasis and Riz Supreme Balgos Comia, this guidebook provided best practices for local tobacco control programs.
Since the passage of the Sin Tax Reform Act of 2012 (RA 10351), three additional rounds of reforms have been implemented, covering tobacco, alcohol, e-cigarettes, vape, and heated tobacco products (RA 10963, RA 11346, and RA 11467). The forum served as a platform to discuss the impact of these reforms and explore potential avenues for further improvement.
The performance review concluded that sin tax reforms have largely delivered on their promises, with significant reductions in smoking prevalence and increased revenues for public health programs. However, it also identified areas for improvement, including citizen engagement in expenditure monitoring and ensuring allocation efficiency for tobacco-producing LGUs.
The review suggests that further tax increases may be necessary for both tobacco and non-tobacco products, considering their potential to reduce health burdens and generate additional revenue. Stronger tax administration and stricter enforcement of illicit trade regulations were also recommended.
The investment case outlined a programmatic approach to operationalizing the NTCS, offering suggestions for translating strategies into tangible service delivery.
The guidebook provided valuable best practices from successful tobacco control programs implemented by local governments, serving as a resource for other LGUs seeking to improve their efforts.
Moving forward
The forum concluded with a call for continued collaboration among stakeholders to maximize the positive impact of sin tax reforms. The three working papers will be disseminated to various stakeholders, including national agencies, civil society organizations, LGUs, local health boards, and others, to inform policy development and resource allocation for tobacco control and prevention.
Healthier future
Lead researcher Ken Abante expressed optimism for the future, saying, “We have a dream: quality, universal healthcare, where everyone, especially the young and the poor, are not unduly burdened by diseases caused by tobacco and alcohol use. Our project outputs show that we the people can participate in shaping health systems so we can lead healthier, happier lives.” Abante further proposed potential strategies for maximizing the health benefits of sin tax reforms, emphasizing the importance of collaboration and community engagement.
