Philippines

Updated May 2013

Tax

Total tax rate as a % of Retail Price: 41%
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Impact on Revenue

Government revenue from tobacco tax 2005 – 2011 (figures in USD)*
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*Country customs department and Ministry of Finance Data 2010-2012

Cigarette Price (2012)

Most popular local brand is Fortune costs 0.47 USD per pack
Most popular foreign brand is Marlboro costs 0.99 USD per pack 

Nominal prices of cigarettes in the Philippines have increased over time, but between 2000 and 2010, real prices for the most popular cigarette brands of each price class have actually decreased by 9%, at the minimum, and 18%, at the maximum.

Cigarette Affordability

Cigarettes have become more affordable in the Philippines as indicated by the decreasing RIP trend. From 1999 to 2009, the RIP decreased by 27 to 36 percent. Despite the regular excise tax increases, cigarettes have become less expensive and more affordable due to the greater increases in per capita GDP income. This means that cigarette prices have not been catching up with the increase in income, resulting from higher economic growth for the past years.

Relative Income Price (Price of 100 Packs as % of per Capita GDP)
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In order to reduce both the negative health and socio-economic burdens caused by tobacco, the government recently passed Republic Act (RA) 10351 or the Sin Tax Reform Act of 2012, considered a milestone in legislation for instituting much needed reforms that had failed to pass for the previous 16 years

Comparison of old and new excise tax systems for machine-packed cigarettes
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Comparison of old and new excise tax systems for machine-packed cigarettes
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Effective 1 January 2013, the following excise rates were implemented

Specific excise tax per pack for machine-packed cigarettes based on net retail price (in PHP)
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Specific tax per pack for hand-packed cigarettes based on net retail price (in PHP)
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Excise tax per cigar based on net retail price (in PHP)
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Source:

ASEAN Tobacco Tax Report Card

ASEAN tax report