• IMAGE: https://www.facebook.com/BawasBisyo/photos/sin-tax-coalition-nanawagan-kay-senator-win-gatchalian-panindigan-ang-pangakong-/1128914092614280/?_rdr 

MANILA, Philippines — A Senate hearing on Monday discussing a House bill aimed at reducing excise taxes on tobacco products effectively halted the measure and blocked its progress in the bicameral conference committee. 

Senator Sherwin Gatchalian, who chaired the Senate Committee on Ways and Means, assured critics of House Bill (HB) No. 11360—labeled by opponents as the “sin tax sabotage bill”—that he would prevent any proposals to amend the sin tax law (Republic Act No. 10351) governing alcohol and tobacco products. 

Gatchalian stated that his committee would focus solely on the provisions related to vape products in HB 11360, which the House of Representatives approved on third and final reading just five days after its filing on January 28. 

Critics of the bill, led by the Sin Tax Coalition, argued that the measure—also referred to as a “protobacco bill”—would do little to curb smuggling, emphasizing that the key solution is “tough and consistent enforcement of the law.”  

The group also raised concerns about the Senate tax panel holding a hearing on the measure during Congress’s recess. They urged Gatchalian to file a separate bill focused on raising taxes on vapes, rather than holding a hearing that they believe would merely provide a “platform” for the tobacco industry. 

• “Best solutions” 

Gatchalian, largely aligning with the bill’s critics, stated, we did not see that lowering down taxes can combat [tobacco smuggling] effectively.”  

He also concurred that strong law enforcement and prosecution are the most effective ways to combat the illegal cigarette trade, a point his panel has confirmed in three prior hearings, he noted.  

“The reason for that is that we don’t believe that the solution to curbing illicit trade will come from the reduction in taxes. We don’t believe in that,” the senator said. 

“We believe in strengthening the enforcement agencies, coming up with new mechanisms, such as incentives for our enforcement agencies, in order to curb illicit trade in our country,” he added.  

On the topic of vapes and other heated tobacco products, he suggested adopting a “unitary” tax system to help reduce their use. 

During the hearing, Dr. Anthony Leachon also supported the idea that increasing taxes on cigarettes and vapes would be a “win-win solution,” noting that manufacturers are specifically targeting young Filipinos. 

“If we start increasing the tax rates [on vapes with] the same level of vigor, then we can actually prevent the onslaught of noncommunicable diseases such as stroke and heart diseases,” said the cardiologist and public health advocate.  

Leachon added that HB 11360 contradicts the principle of “price deterrence,” a proven and effective tobacco control strategy that reduces consumption, especially among vulnerable groups like youth and low-income populations.  

“Allowing this measure to pass is tantamount to reversing and undermining the public health gains we’ve made from the implementation of sin taxes,” he said. “[The bill] incentivizes and legitimizes an industry that profits from addiction despite overwhelming empirical data that tobacco products cause real and lasting harm.” 

• Postpone to the next Congress 

Dr. Antonio Dans, a fellow of the National Academy of Science and Technology, highlighted that HB 11360 includes provisions to raise tobacco taxes by just 2 percent every even-numbered year beginning in 2026—significantly lower than the 5-percent increases mandated by the current revenue code.  

“That is a major concern of the organizations of health-care professionals because if this will be subjected to a bicameral committee hearing, that provision can be used to actually implement a rollback on the tax [on cigarettes],” Dans stated. 

Gatchalian guaranteed Dans that “as long as I’m the chairman of this committee, I will not agree to include that cigarette [tax] provision in the bicameral committee report.”  

Addressing his colleagues in the House, Gatchalian stated: “If we don’t agree, then so be it. We’ll talk again during the 20th Congress.”  

He stated that his committee report would concentrate solely on his proposal for a unified tax system on heated tobacco products. 

Gatchalian also criticized the Department of Trade and Industry for neglecting its responsibility to regulate the sale of these products. 

“If we don’t enforce [the law], if you are just in your offices, nothing will really happen,” he asserted.