This term paper focuses mostly on the implication of the increased cigarette tax to smokers, to the target beneficiary of the law and to the government. The researcher also gives light on how the cigarette tax is implemented. Studies and articles reviewed in the paper show strong indication of positive and negative effects of additional cigarette taxes. It has pointed out that the low-income earners and the youth are the categories of smokers who are most likely to quit due to the economic reason of price. The real loser in any price increase is the smoking public who shoulders the cost passed on to them by manufacturers, distributors, and retailers through the tiers of taxes imposed by the government. The positive growth of government revenue is shown as tax increases government income. As a source of revenue, tax collections increase as higher taxes are imposed thereby providing a source of revenue for project allotments. In this term paper, the tax hike in 2009 is intended to benefit the expansion of the State Children Insurance Program. But this is contradicted that the amount of collection will not be sufficient to support this program. The researcher then concludes that cigarette tax is a conflicting policy that has to be weighed in terms of revenue generation, health promotion, and social considerations. However, it is an economic tool that balances economic and social policy. In Asian experience, their policy favored the tax increase, in the same way, that this year, US has implemented cigar tax hike.