‘Sin’ tax take up 39.6% in Nov.

The excise tax take from so-called “sin” products jumped by 39.6 percent year-on-year in November to P16.3 billion, data from the Bureau of Internal Revenue (BIR) showed.

In November, the BIR collected excise taxes worth P12.6 billion (up 54.5 percent year-on-year) from 558 million packs of cigarettes; P2.3 billion (up 3.1 percent) from 131 million liters of fermented liquors; P1.4 billion (up 8.6 percent) from 40 million proof liters of distilled spirits and compounded liquors, and about P11 million (up 65 percent) from 344,598 liters of wines.

As of end-November, excise tax collections from sin products grew by 26 percent year-on-year to P123.6 billion, BIR data showed.

At the end of the first 11 months, the BIR collected P86.3 billion (up 33.2 percent year-on-year) in excise taxes from some 3.8 billion packs of cigarettes; P25.2 billion (up 14.1 percent) from nearly 1.3 billion liters of fermented liquors; over P12 billion from 355 million proof liters of compounded liquors and distilled spirits, and some P28 million (down 0.5 percent) from some 1.2 million liters of wines.

The excise taxes being collected from sin products continue to grow due to the implementation of higher rates under Republic Act (RA) No. 10351 or the Sin Tax Reform Law. It restructured the rates slapped on tobacco and alcohol such that the resulting higher prices would discourage vice while also collecting more revenues to be poured into healthcare.

Under RA 10351, cigarette packs that cost below P11.50 are taxed P21 more this year, up from P17 last year, while those priced above P11.50 are slapped P28, up from P27 in 2014.

Fermented liquor that cost less than P50.60 per liter are levied P19 (from P17 last year), while those priced P50.60 and above are taxed P22 (from P21 in 2014).

This year, distilled spirits are levied an additional P20 plus 20 percent of the net retail price per proof, from just P20 plus 15 percent last year.

Total excise taxes from sin products reached P114 billion last year.

In 2013, or the first year of implementation of the Sin Tax Reform Law, incremental revenues from tobacco and alcohol products hit P51.2 billion, 51 percent higher than the target.

Last year, incremental revenue dropped to P50.2 billion, 17 percent above the 2014 goal.

During the first two years of its implementation, Sin Tax Reform generated more than P104 billion poured into universal healthcare programs, Department of Finance data showed.

This year, the BIR targets to collect P1.674 trillion in taxes, of which P140.4 billion should come from excise taxes slapped on alcohol, minerals, motor vehicles, petroleum and tobacco. Ben O. de Vera