Financing alternatives to tobacco growing: Philippine experience in implementing Art. 17 and 18
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Southeast Asia Tobacco Control Alliance, Thailand
Publication date: 2018-03-01
Tob. Induc. Dis. 2018;16(Suppl 1):A390
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ABSTRACT
Background and challenges to implementation:
The tobacco industry has perpetuated the myth
that alternatives to tobacco are not economically viable or are non-existent.
However, increasing global evidence showing the harmful effects of tobacco
among workers, their families and communities, the economy, and the environment
are compelling even the world's top tobacco producers to find alternatives to
tobacco growing.
FCTC Articles 17 and 18 obligate
Parties to provide support for economically viable alternative livelihood to
tobacco growers and workers. Policy options and recommendations on economically sustainable alternatives to tobacco growing were
adopted at the sixth
session of the Conference of the Parties in 2012.
This
presentation will highlight the Philippine's experience in using the Sin Tax
Law's provision of earmarked revenues specifically on implementation of
alternative livelihood to tobacco farming. Key issues and challenges hindering
implementation will be identified, while policy recommendations will be
proposed to ensure that viable alternatives are implemented effectively.
Intervention or response:
The Philippine's Sin Tax Law enacted in
2012 restructured the excise taxes of tobacco and alcohol products. The law was
both a fiscal measure to increase government revenues, and a health measure
that discourages tobacco consumption and increases allotment for healthcare.
The law also amended existing laws that allocated incremental revenues from
tobacco excise taxes for programs to promote economically viable alternatives
for tobacco farmers and workers in areas where they are cultivated.
Results and lessons learnt:
Vegetables and corn are
suitable alternatives in areas where tobacco is cultivated. Cost returns analysis shows that cultivating vegetables gave
1.5 to 5 times higher net income while corn is at par in terms of revenue.
Conclusions and key recommendations:
By providing funding for implementation of alternative livelihood, the Philippines has started complying with FCTC Article 17 and 18. Government efforts should be expanded to ensure that programs aimed at promoting alternative livelihoods to tobacco farming are implemented effectively.