‘Sin’ tax collections hit P8.9B in April
Excise tax collections from sin products grew year-on-year and even exceeded the target in April even as cigarette sales decreased due to the implementation of the Graphic Health Warning Law.
Based on latest data, the Bureau of Internal Revenue said it collected in April P8.9 billion in excise taxes slapped on tobacco products, fermented liquors as well as compounded liquors and distilled spirits.
The ‘sin’ tax take in April exceeded by 1.1 percent the P8.8 billion collected a year ago and surpassed by 13.3 percent the P7.9-billion target for the month.
Collections from fermented liquors jumped by a fourth to P2.8 billion year-on-year, while the tax take from distilled spirits and compounded liquors climbed by a fifth to P1.2 billion.
The excise taxes collected from tobacco products, however, dropped by 11.9 percent to P4.9 billion from P5.5 billion a year ago.
“The [year-on-year] decrease in excise tax collection in cigarettes in April was still largely due to the implementation of the Graphic Health Warning Law,” the BIR said.
BIR data showed while volume withdrawals from stores and factories for fermented liquors and distilled spirits/compounded liquors/wines grew 14.6 percent and 15.8 percent, respectively, those of cigarettes declined by 25.8 percent.
In April, only 179.2 million packs of cigarettes were withdrawn from factories and warehouses for delivery and sale at retail outlets, down from 241.5 million in the same month last year.
In the first four months, cigarette withdrawals were also down by almost 2 percent to 728.7 million packs from 743.5 million in the same period last year.
In total, the tax take from January to end-April rose 16.5 percent year-on-year to P35.5 billion, hence also exceeding by nearly 9 percent the P32.6-billion goal for the period.
“Sin tax collections have consistently posted robust growth figures and exceeded targets since implementation, expanding our sustainable health financing capacity for the long-term. This is a concrete example of how reform can break fiscal constraints to investing in our people,” Finance Secretary Cesar V. Purisima said in a statement.
“The Sin Tax Reform Law of 2013 is a touchstone of synergistic public policy serving both our fiscal and health priorities. I look forward to seeing improving collections and healthier collections in the next six years and beyond,” the outgoing Finance chief added.
