MANILA, Philippines – The Department of Finance has welcomed a suggestion floated by the Bureau of Internal Revenue (BIR) to set a minimum price on cigarettes to create a fairer marketplace and curb smoking amid the widespread availability of discounted tobacco products. Finance Undersecretary Jeremias N. Paul Jr. said the idea of setting a standard minimum price for all cigarettes is something that the agency would look at as the government pursues its anti-smoking campaign. Paul said the proposal, which would require legislative action, could be an effective policy tool that can support the beneficial health impacts of the sin tax law, which raised taxes on tobacco and alcohol products beginning January 2013. “We’re okay with it. In fact, the industry is open to it. But its still too early to discuss the minimum potential revenue from this [measure] because we’ll have to wait for the review to be completed. There are technical details that we need to look at,” Paul said. By introducing a flat rate minimum price for all tobacco products, consumers will not get to buy at a lower price from the amount set by the state. This will cause the quantity demanded to decline, especially among consumers with lower income. Ensuring high prices of tobacco products are proven ways to discourage the use of tobacco and coerce smokers to kick the habit. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 One of the objectives of the sin tax law is to make tobacco and alcohol Read More …