On Thursday, December 20, President Benigno Aquino III signed the sin tax bill into law, ending a grueling battle to reform the Philippines' excise tax system.
"Today, we sign, finally, a law that serves as an early Christmas gift to millions of Filipinos who will be covered by the universal health care program, who will benefit from new public clinics and hospitals that will be built, and who will be discouraged from smoking and drinking," the President said in a speech at the signing ceremony in Malacañang.
The law imposes higher taxes on the sin products, overcoming a strong industry lobby that kept prices in the Philippines among the cheapest in the world.
It will generate additional revenues of roughly P34 billion in the first year of implementation that will be spent for the universal health care program and tobacco farmers' livelihood.
Aquino, who flexed his political muscle to get the measure passed, thanked lawmakers and advocates who helped push for the reform bill.
"Many believed it was impossible to pass the sin tax bill. Those who are opposing it are strong, noisy, organized, and they have deep pockets."
"But we have proven: nothing is impossible for Filipinos who are sailing in the same direction, whose hearts are in the right place, and who are ready to fight for their principles," he said.
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