House approves tobacco tax hikes to combat illicit trade

In South Dakota, lawmakers advanced a bill to cut state funding for tobacco prevention from $5 million to $3 million due to budget constraints amid rising Medicaid costs. While proponents argue that the reduction reflects a smaller tobacco problem in the state, public health advocates warn that diminishing funding could reverse progress in reducing smoking and vaping rates, particularly among youth. Meanwhile, in the Philippines, the House of Representatives approved House Bill 11360, which aims to rationalize excise tax rates on tobacco and vapor products to combat declining tax collections and increasing illicit trade. Lawmakers anticipate that the bill could generate an aggregate recovery of P66 billion over five years, as they seek to address the rise in adult smoking rates and the proliferation of illegal tobacco products. The new tax scheme proposes alternating increases every odd and even-numbered year until 2035, with a review of its impact on revenue and health outcomes planned thereafter. Concerns have been raised about how illicit trade undermines the objectives of previous tobacco control laws, affecting both public health and government revenue.