‘Sin’ tax take up 27% to P12B in August
The excise taxes collected from so-called “sin” products rose by more than a fourth to P11.9 billion in August, the latest Bureau of Internal Revenue (BIR) data showed.
In an e-mail to the Inquirer, Revenue Commissioner Kim S. Jacinto-Henares said excise tax collections from tobacco and alcohol products in August jumped by 27.3 percent from P9.3 billion a year ago.
The take from cigarettes grew by 31.4 percent to P8.6 billion from P6.6 billion in August last year.
From alcoholic products, collections in August increased by 17.7 percent to P3.2 billion from P2.7 billion a year ago.
In August, the BIR collected P2.1 billion in excise taxes from fermented liquor, as well as P1.1 billion from distilled spirits.
At the end of the first eight months, excise tax collections from cigarettes and alcoholic drinks reached P77.6 billion, up 18.5 percent from P65.4 billion in the same period last year.
The end-August tax take from tobacco products rose 22 percent year-on-year to P51.5 billion, while collections from alcohol products grew 12.2 percent to P26.1 billion.
The excise taxes being collected from sin products have been increasing so far this year, mainly on the back of higher tax rates under Republic Act No. 10351 or the Sin Tax Reform Law.
Under RA 10351, cigarette packs that cost below P11.50 are to be taxed P21 this year, up from P17 last year, while those that are priced P11.50 and above are slapped P28, slightly up from P27 in 2014.
Fermented liquor that cost less than P50.60 per liter are now taxed an additional P19 (from P17 last year), while those priced above P50.60 are slapped P22 (from P21).
Distilled spirits, meanwhile, are levied P20 plus 20 percent of the net retail price per proof, from P20 plus 15 percent last year.
Sin tax reform restructured the excise taxes slapped on alcohol and tobacco, with higher tax rates slapped on these products to discourage vice while also collecting more revenues to be poured into healthcare.
