Philippine government asked to recalibrate tobacco tax rate to prevent spread of illicit trade
December 19, 2024 by asianews.network
Philippine government asked to recalibrate tobacco tax rate to prevent spread of illicit trade
Economist Dr. Arthur Laffer advised the Philippines to adjust high tobacco excise taxes, causing revenue loss and increased illicit trade. Laffer suggested aligning tax rates with revenue-maximizing levels to combat declining revenue and illicit trade growth. He emphasized the need for a tax system that balances revenue needs and economic impact. Laffer praised the country's tobacco tax reforms but recommended simplifying e-cigarette taxation. He also proposed streamlining regulations in capital markets and the mining sector. Laffer warned that further tax increases could worsen revenue declines and illicit trade. By reassessing tax rates and simplifying the tax system, the Philippines can boost revenue without hindering economic growth.
20.40% of the adult population are current smokers. There are approximately 15.8 million current smokers in Philippines 36.20% of men are current smokers but only 4.30% of women.
SOURCE: GSTHR
