Sin Tax Hike Urged to Protect Youth from Vices, Health Issues

Calls are mounting in the Philippines to increase the excise taxes imposed on alcohol, sweetened beverages, and tobacco products, collectively known as 'sin taxes,' as a measure to curb the rising prevalence of unhealthy habits among the youth. Health advocates and lawmakers are urging President Marcos to implement stronger taxation policies, asserting that current preventive measures are insufficient. During a press briefing, members of the 'Youth for Health' coalition implored the government to allocate greater funding for health programs targeting young people. The group expressed concerns over the escalating rates of stunting and obesity nationwide, highlighting the high consumption of alcohol and prevalence of smoking among the youth, alongside the increasing use of e-cigarettes, which many mistakenly believe are safer than traditional tobacco products. Cielo Magno, an economics professor at the University of the Philippines (UP), explained that raising sin taxes would generate much-needed revenue for health programs, particularly for expanding the benefits offered by the Philippine Health Insurance Corp. (PhilHealth). "Taxes serve two functions. One is to discourage the behavior of smoking and alcohol drinking. Second, it generates revenue," Magno stated, adding, "Sin taxes are the primary sources of revenue for PhilHealth." Citing findings from the 2025 Updating Survey by the Department of Science and Technology’s Food and Nutrition Research Institute (DOST-FNRI), Magno noted that stunting among Filipino children below five years old climbed to 25.3 percent last year, a 1.7 percent increase from 2023. "There are already many scientific studies showing that they are less likely to finish their education if they are stunted," she warned. "Imagine, if 25 percent of our youth is stunted and we do not reverse that, then 25 percent will not even finish high school, and that’s your workforce." The DOST-FNRI report also indicated that the percentage of smokers and alcohol drinkers among Filipino adolescents, aged 10 to 19, remained largely unchanged. It found that 4.5 percent of adolescents were smoking on a daily or regular basis, while 22.3 percent were current alcohol drinkers in the past 12 months. "We already have sin taxes, but I think our government needs to realize that when incidence of smoking … and alcohol drinking are increasing, it means the current rate of taxes is no longer effective," Magno observed. The coalition urged the President to prioritize House Bills Nos. 5966, 5475, and 5476, which aim to increase taxes on distilled spirits by 25 percent year-on-year and on fermented liquors or 'alcopops' by 10 percent year-on-year for five years. These proposals are estimated to generate approximately P206 billion in total incremental revenue over five years. Furthermore, the health advocates expressed support for House Bills 5003 and 5969, which seek to increase taxes on sweetened beverages. These measures would raise taxes on caloric sweeteners from P6 to P20 per liter and on high fructose corn syrup from P12 to P40 per liter. The same bills also aim to remove tax exemptions for flavored and fermented milk, and sweetened coffee. These initiatives are projected to generate an estimated P80.9 billion in total incremental revenue over five years.