Costs Due To Alcohol Harm Are Staggering
The economic burden of alcohol harm in the Philippines has reached alarming levels, reports Daily Tribune.
According to research from Action for Economic Reforms (AER), harm due to alcohol and tobacco cost the country P1.1 trillion annually (€18,145,039,000).
This financial strain impacts healthcare, productivity, and overall societal well-being.
AER was founded in 1996 by a group of progressive Filipino scholars and activists, as an independent, reform-oriented and activist policy group. It is an alcohol policy advocacy partner of Movendi International in the RESET Alcohol Initiative.
The Economic Toll of Alcohol Harm
Alcohol harm extends far beyond the purchase price of these products. According to the AER Report, the indirect costs, including lost productivity due to illness and premature death, reached P703.5 billion in 2021. When combined with direct healthcare expenses, the estimated economic burden soared to P1.055 trillion.
This exceeds the 2025 budgets of the Department of Education and the Department of Health (DOH).
The new figures matter greatly for an evidence-based understanding of alcohol harm and costs to society in the Philippines. In 2019, Movendi International reported about a study by the Filipino government that showed costs due to alcohol harm amounted to P200 billion annually. That study was conducted by the House of Representatives Ways and Means Committee and the Department of Finance. The new figures are more precise and comprehensive and show how much the government and parliament underestimated alcohol harm and costs in the Philippines in recent years.
Public Health Impact: Rising Alcohol Use and Deaths
Alcohol harm is a major public health concern in the Philippines. For instance, 39,802 Filipinos died from alcohol-related causes in 2019.
In addition, a 2021 survey by the Department of Health (DOH) found that 40% of Filipino adults reported alcohol use, increasing from 38% in 2019. Among them, 33% engaged in heavy alcohol sessions, leading to further health risks.
Severe Health Consequences
The products and practices of the alcohol industry fuel serious the serious burden of premature deaths and disease in the Philippines. The Global Burden of Disease report warns that alcohol and tobacco use together cause 115,000 deaths annually in the Philippines. Moreover, these substances lead to 3.9 million years of healthy life lost, severely affecting families and communities.
Movendi International analyzed the Global Burden of Disease report in 2024 and compiled a compelling overview regarding alcohol harm (GBD Policy Brief, Philippines, 2024).
It shows a number of staggering findings that underline the urgent need for alcohol policy action:
- Among 15–49-year-olds, alcohol is third biggest risk factor for disease burden in the Philippines.
- There has been a dramatic increase in cardiovascular disease due to alcohol. Measured in DALYs per 100,000 people, cardiovascular disease due to alcohol has increased 238% since 1990.
- The Philippines faces a dramatic increase in cancers caused by alcohol. Since 1990 there has been a 58% increase in DALYs from cancers due to alcohol.
- The contribution of alcohol to health harm is growing in the Philippines.
Taxation as a Solution for Preventing Alcohol Harm and Promoting Progress
Community groups and advocates for people’s health stress the urgent need for raising taxes on alcohol, tobacco, and vape products.
Increasing taxes would help fund universal health coverage and health promotion programs to prevent and reduce the damage caused by these health harming industries.
Of all the health taxes now in common use, alcohol has the most untapped potential, according to a 2024 United Nations and WHO report: despite being used as a fiscal tool for centuries and being implemented in over 86% of countries worldwide, alcohol taxes have yet to be utilized to achieve their fullest impact for population health, revenue generation and economic growth.
In fact, seven of the largest alcohol and tobacco companies in the Philippines earned P506 billion in 2022, placing them among the top 0.2% most profitable businesses. Meanwhile, much of the financial burden of alcohol harm falls on taxpayers and the healthcare system.
Raising alcohol taxes changes this by making the alcohol industry pay for more of the harm their products and practices cause.
Wider Societal Costs: Alcohol Use Affects Everyone
The consequences of alcohol harm extend beyond those who consume it. For instance, alcohol fuels to road traffic crashes, domestic violence, and other secondhand harms often severely affecting children. Another dimension is workplace absenteeism and presenteeism due to alcohol – that harms workplace safety, cohesion, and productivity.
In 2021, survey data from the Philippines government revealed the severity of the alcohol burden in the country. The government responded with a landmark action, increasing taxes on alcohol and tobacco in order to invest the revenues into achieving health for all and universal health coverage.
Call for Better Policies and More Ambitious Public Action
Such ambitious, decisive, and evidence-based action is urgently needed again.
With the 2025 elections approaching, community groups and advocates for people’s health urge candidates to support raising alcohol taxation and improving other alcohol policy solutions to promote well-being and social progress. They call for people’s health to be prioritized instead of corporate profits.
The data is clear: Alcohol harm places a tremendous financial and health burden on the Philippines. By implementing more comprehensive and evidence-based alcohol policies, especially raising alcohol taxes , the country has the opportunity to take a decisive step toward a healthier more sustainable and resilient society.