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‘Sin’ taxes seen to boost BIR collection to P1.25T

Agency projects 44% growth in revenue from excise taxes

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The Bureau of Internal Revenue aims to collect P102.4 billion in excise taxes this year and boost total revenue collection for the year to P1.25 trillion.

BIR data show that the 2013 excise tax goal is 43.8 percent higher than the P71.2 billion targeted in 2012.

The share of excise tax in the total collection goal rises to 8.2 percent this year from 6.6 percent last year.

Income taxes still accounted for the bulk of the BIR’s revenue goal at P759.2 billion, or about 61 percent of total.

The value-added tax collection goal for this year of P268.6 billion is about 21 percent of the total target of the BIR.

Finance officials have regained footing on their revenue outlook for the coming years with the passage in December of the sin tax reform law.

Finance Secretary Cesar V. Purisima said last month the new law, which increased the excise tax rates on tobacco products and alcoholic beverages, was expected to raise some P34 billion in additional revenue during the first year of its implementation. Even then, the difference between this year’s and last year’s excise tax goal is only P31 billion.

The targeted additional collection from “sin” taxes is less than both the P60 billion that Malacanang had wanted to generate and the P40 billion that state economic managers said was the minimum amount that would enable excise tax reforms to achieve their goals.

Purisima had said that over the succeeding four years of implementation, the law would turn in P184.31 billion in additional collection from so-called sin products.

This year’s overall collection target of the BIR is 17.6 percent higher than the P1.066 trillion set for 2012.

Also last month, the BIR said it had breached the record P1-trillion collection for any given year on Dec. 17.

Earlier in December, the agency reported a yield of P969.34 billion for the first 11 months of the year.

“Considering projections of collections from other sources that were unaccounted for as of (Dec. 17), the BIR could have hit the P1-trillion mark much earlier,” the BIR said in a statement.


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Tags: BIR collection , Bureau of Internal Revenue , excise tax , sin taxes

  • http://pulse.yahoo.com/_GYYFBINDMTZHM6TDHPB667452M agustin

    the new sin tax law is still mild, smokers still smokers, drinkers are still drinkers,and to them the increase is nothing.

  • cute79

    1.25trillion makolekta tax galing sa alak at sigarilyo ,1.5billion para sa MOOE ng mga senador at iconvert as savings then pagdating ng pasko pabonus ng mga senador.Another billions sa malakanyang at house of respresenthieves.

  • http://pulse.yahoo.com/_NWTWAWQO7MWPOD75YHMUCR2IWU Mux

    I thought the purpose of the sin taxes is to make people smoke and drink alcohol less so how will that boost revenue? 

    • magiting78

      That’s the main objective…additional revenue is just a projection if ever the current smoker or user will not quite smoking…

  • kismaytami

    It is also seen to boost government savings which turns to bonuses before yearend.

    • magiting78

      The more possible boost on government savings abolish Pork Barell…Now it is no longer Pork Barell-Pork Quarell…kita mo nag aaway away n sa Senatong dahil hnd pantay ang hatian….hehehe tamang duda lng

  • FernandoBusi

    Results first before publicity. 

    • magiting78

      Hehehehe Politician approach…pangako muna…then boto..pag nanalo…bulsa ko muna bago kau….

  • Elio Madama

    The mission of these politicians, including as number one the President, is to KILL the middle class of filipinos.
    Health insurance, 100% increase few month ago.
    Property taxes 50% increase (at least in Dipolog City).
    Sin taxes, supposed to help poor people with hospital, etc. (then….why increase insurance premium 100%?).
    Food, as chicken, pork, fish, sardines, etc. 15% increase.
    Little by little poor will be poorer, middle class will be poor and rich will be richer.
     

  • http://pulse.yahoo.com/_VNLEL6SV5GHRUCLB3WSZVOZCUA RockA

    Too much taxes.  Gotta pay a VAT.  Gotta pay a SIN tax.  And the SIN tax is scheduled to increase every year.  The politicians want to slow fry their frog so that the frog doesn’t hop out of the skillet.



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