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Gov’t ‘sin’ tax take up 5.44% in first 6 months

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Gov’t ‘sin’ tax take up 5.44% in first 6 months

/ 05:10 AM July 28, 2017

With the higher excise rates slapped on alcoholic drinks and cigarettes under a unitary system since January, total “sin” tax collections grew 5.44 percent year-on-year to P60.047 billion in the first half.

The excise taxes collected from tobacco and alcohol products from January to June exceeded the P56.948-billion take in the same period last year, Bureau of Internal Revenue data presented yesterday to the Congressional Oversight Committee on the Comprehensive Tax Reform Program showed.

BIR data showed that end-June collections from tobacco products fell 1.52 percent to P32.4 billion from P32.9 billion a year ago, as the volume of cigarette removals or sales dropped by 11.7 percent to 1.081 billion packs from 1.224 billion a year ago.

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Under Republic Act No. 10351 or the Sin Tax Reform Law, which took effect on Jan. 1 this year, slapped a unitary rate of P30 per pack on cigarettes. Last year, a two-tiered system was in effect. Under this, cigarettes priced P11.50 per pack were taxed P25 while those priced higher were slapped P29 per pack.

Finance Assistant Secretary Maria Teresa Habitan told the Inquirer that the drop in removals reflected the Department of Health’s data showing that less young Filipinos smoked as cigarette prices soared.
Consumption of alcohol increased during the first half—volume withdrawals of fermented liquors rose 5.19 percent year-on-year to 854.8 million proof liters, while those of distilled spirits jumped 10.57 percent to 206.1 million proof liters.

For alcohol products, the excise tax rose this year to a unitary rate of P23 per liter, from P21 for products priced P50.60 or less per liter and P23 for those priced higher.

Tax collections from alcohol products rose 14.97 percent to P27.631 billion as of end-June from P24.033 billion a year ago.

The first-half excise tax take from fermented liquors went up 15.46 percent year-on-year to P20.147 billion; distilled spirits, up 13.5 percent to P7.466 billion, and wines, up 193.58 percent to P18.5 million.—BEN O. DE VERA

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TAGS: Bureau of Internal Revenue, comprehensive tax reform program, excise taxes, sin tax, tobacco and alcohol products
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