The World Health Organization (WHO) launched the “WHO Report on the Global Tobacco Epidemic, 2015: Raising Taxes on Tobacco” today, 7 July 2015. The 2015 edition is the fifth global report on the tobacco epidemic, produced by the World Health Organization with support from the World Bank and Bloomberg Philanthropies.

The report published yearly highlights the progress in tobacco control worldwide. Each report guides countries in managing the effects of tobacco use as well as a global analysis of its use and control. Tobacco-related illness is one of the biggest health threats the world faces today and strong measures are taken to prevent deaths, including strict tobacco control policies.

In 2008, the MPOWER package of measures, a strategy to assist Parties in controlling tobacco use, was established by the WHO Framework Convention on Tobacco Control (WHO FCTC). MPOWER identifies six key policies to stamp out the tobacco epidemic namely to Monitor tobacco use and prevention policies, Protect people from tobacco smoke, Offer help to quit tobacco use, Warn people about the dangers of tobacco, Enforce bans on tobacco advertising, promotion, and sponsorship, and Raise taxes on tobacco- the theme of this year’s report.

The Philippines has been chosen to host the launch of the 2015 WHO report on tobacco taxation in recognition of the PH’s efforts to reduce tobacco consumption with the passage of the Republic Act No. 10351, also known as the Sin Tax Reform Act of 2012. The law significantly increased the specific excise tax on tobacco and simplified the tax structure to make it more efficient in raising the tobacco tax. The Sin Tax Law simplified the tax system, introduced higher excise rates, and indexed the tax rate to an inflation proxy of 4% annually after 2017.

The incremental revenues of Sin Tax Revenues in 2014 was P50.2 billion, higher than the P49.2 billion target collection for sin taxes this year, while the incremental revenues earmarked for Health (Philhealth premiums, Health Facilities Enhancement Program) was P44.7 billion in 2013, and P42.6 billion in 2014. The share of total tobacco and alcohol excise collections amounted to 0.9% of GDP for 2013 and 2014, the highest since 2000.

Tobacco taxes is a key source of funding universal health care especially for the poor, with the national government allocation for health insurance premiums increasing from P12.6 Billion to P35.3 Billion from 2013 to 2014.

Since the law has been in effect, it has significantly reduced tobacco use and related harms. The law is recognized globally as a public health breakthrough.

The Philippines was recognized by the Bloomberg Philanthropies Awards for Global Tobacco Control at the 16th World Conference on Tobacco or Health in Abu Dhabi last March, as one of the six honorees in the fight against the global tobacco epidemic under its MPOWER method under the “R” category, “Raising taxes on tobacco”.

Speaking on behalf of Finance Secretary Cesar V. Purisima, Finance Undersecretary Jeremias N. Paul, Jr. of the Domestic Finance Group said, “It is an honor for the Philippines to not only host today’s event but also to be recognized as an achiever in raising tobacco taxes to help reduce its use. The Sin Tax Reform Law has proved that tobacco taxation is good for both the country’s fiscal and public health, as it reduces consumption and generates revenue simultaneously. 

The Philippine government is committed to this reform and we continue to develop reforms and programs to secure our people’s health and our nation’s wealth for a better life for all.”    

The launch held at the WHO Regional Office for the Western Pacific, celebrated the global gains made in tobacco control, recognized partners and their contributions, and showcased the highlights of this year’s report in the battle against the tobacco use epidemic.

The event was formally opened by Dr. Shin Young-see, Regional Director for the WHO Western Pacific, followed by remarks from WHO experts and government representatives including Undersecretary Jeremias N. Paul, Jr.