Sin Tax Coalition Lauds Rep. Nat Oducado for Filing First Alcohol Tax Measure in 20th Congress

On Wednesday, August 20, the Sin Tax Coalition expressed its full support for 1TAHANAN Party-list Representative, Rep. Nathaniel “Nat” Oducado, as he filed House Bill 3887, which raises excise taxes on alcoholic beverages.

“We commend Rep. Nat for being the first legislator in the 20th Congress to propose a bill raising excise taxes on alcohol. This is a huge step towards protecting our youth and young adults from the devastating harms of alcohol, one of the leading risk factors for disease, injury, and premature death among Filipinos,” said Dr. Maricar Limpin, former president of the Philippine College of Physicians and a convenor of the Sin Tax Coalition.

She noted that alcohol use was the leading risk factor for premature deaths among Filipinos aged 20-39, according to the 2021 IHME Global Burden of Disease (GBD) study by the Institute for Health Metrics and Evaluation (IHME). “The youth, in particular, are targeted by the alcohol industry’s strategic marketing and product design, especially for products like alcopops,” said Dr. Limpin.

Nearly half of Filipinos reportedly consume alcohol, a level that has remained persistently high since 2010, according to the National Nutrition Survey of the Department of Science and Technology - Food and Nutrition Research Institute. Every year, 27,477 people die in the Philippines due to high alcohol use. 

Alcoholic beverages are clearly affordable and accessible to young people and prices need to be raised to reduce consumption, Dr. Limpin added. 67% of Filipinos agree that higher taxation on alcohol would effectively reduce consumption.

Rep. Oducado’s bill raises taxes on distilled spirits by 15% every year, fermented liquors or beers by 10% every year, and reclassifies pre-mixed alcoholic beverages or “alcopops” to be taxed in the same manner as fermented liquors, thereby increasing its tax rates. 

In its explanatory note, it was estimated that the bill will result in at least P200 billion worth of incremental revenues in the next six years for the implementation of the Universal Healthcare Law. Over the next six years, this means P120 billion for UHC and P40 billion for Health Facilities Enhancement Program (HFEP).

The coalition expressed hope that other health advocates in the House of Representatives will support alcohol taxes. “Sustainable funding for our health programs is crucial amidst high out-of-pocket spending,” said Dr. Limpin. “The time to act is now.”