Tax take from sin products up 31% in Q1
AFP FILE PHOTO
Collections of excise taxes slapped on locally made tobacco and alcohol products jumped by almost a third in the first quarter, the Bureau of Internal Revenue (BIR) said.
Citing preliminary figures, Revenue Commissioner Kim S. Jacinto-Henares said in a text message that excise tax collections from so-called “sin products” hit P21.67 billion in the first three months of 2015—31.16 percent higher than the P16.52 billion collected in the same period last year.
“The drastic increase in collection can be attributed to the increase in excise tax rates and implementation of Irsis [Internal Revenue Stamps Integrated System] on tobacco,” Henares said.
Irsis enables the collection of the correct excise taxes on tobacco and alcohol products.
The BIR ordered that all packs of cigarettes produced in the country since Dec. 1 last year must be affixed with tax stamps. Since March 1, only cigarettes that bore stamp would be sold in the market.
As for imported cigarettes, all packs must also bear tax stamps by April 1.
Henares had said that, by the second half of 2015, the BIR would roll out the counterpart of Irsis for alcoholic beverages and distilled spirits, under which tax stamps would also be affixed on liquor bottles.
Republic Act No. 10351, or the sin tax reform law enacted in 2012, provided for an automatic annual adjustment of 4 percent on the specific excise taxes of cigars and tobacco products, wines, as well as fermented liquors brewed and sold at microbreweries, starting Jan. 1, 2015.
This year, cigarettes priced over P11.50 a pack would each be slapped with an excise tax of P28, while those that cost P11.50 and below would be set at P21 apiece. By 2017, the excise tax will be a uniform P30 per pack.
Under the sin tax law, the excise tax rates on alcohol and tobacco had been adjusted higher to discourage consumers from patronizing the products. Taxes collected from the sin products would be channeled into healthcare.
Last year, additional tax collections from alcohol and tobacco products reached P50.18 billion, exceeding the goal of P42.86 billion, BIR data showed.
