The government expects its “sin” tax collection this year to reach P36.34 billion, which is way beyond the official incremental revenue target set for 2013.
According to the Department of Finance, there is a good chance that actual collections this year may be higher than earlier anticipated because the move to increase tax rates has been complemented by measures designed to prevent tax evasion.
DOF data on the latest revenue outlook show that the Bureau of Internal Revenue may collect P93.18 billion in excise taxes on alcoholic beverages and tobacco products this year. The amount is P36.34 billion higher than that of last year.
The estimated incremental revenue of P36.34 billion is higher than the official target of P33.96 billion.
BIR Commissioner Kim Henares said in an earlier interview that the target revenue from the Sin Tax Reform law could be attained.
She shrugged off concerns that the higher sin tax rates could result in an increase in smuggling activities.
Henares said the government so far is not experiencing any crunch in excise tax collection.
The Inquirer earlier reported that the BIR’s actual sin tax collection from January to April this year amounted to P21.75 billion—nearly 25 percent higher than the P17.47 billion recorded in the same period last year.
The DOF said the new Sin Tax Reform law, which took effect last January, did away with the old multitier tax structure, which was said to favor certain brands. The new law imposes the same tax rates on all industry players.
With the new rates, the government hopes to collect P42.86 billion in incremental revenues next year, P50.63 billion in 2015, P56.86 billion in 2016, and P64.18 billion in 2017. Michelle V. Remo