Gov’t to jack up further taxes on alcoholic drinks
By 2020, manufacturers and consumers of alcoholic drinks should brace for higher excise tax rates given the government’s intention to further cut down consumption of “sin” products in the country and collect more revenue.
An updated proposal of the Department of Finance showed that it wanted an ad valorem tax of 25 percent slapped on distilled spirits starting 2020.
Distilled spirits will also be slapped a specific tax of 40 percent per proof liter in 2020, 45 percent in 2021, 50 percent in 2022, 55 percent in 2023, and a yearly 10-percent increase starting 2024.
Fermented liquors, per liter of volume capacity, will also be levied 40 percent in 2020, 45 percent in 2021, 50 percent in 2022, 55 percent in 2023, and a yearly 10-percent rise from 2024 onward.
As for sparkling wines or champagne priced P500 or less, the excise tax per liter of volume capacity will be P334.59 in 2020, P368.04 in 2021, P404.85 in 2022 and P445.33 in 2023.
Sparkling wines and champagne that cost more than P500 will be slapped P936.82 in 2020, P1,030.50 in 2021, P1,133.55 in 2022 and P1,246.91 in 2023.
Article continues after this advertisementStill wines and carbonated wines with 14-percent alcohol or less will have the following excise taxes per liter of volume capacity: P40.15 in 2020, P44.17 in 2021, P48.59 in 2022 and P53.45 in 2023.
Article continues after this advertisementFor still and carbonated wines with over 14-percent proof but not more than 25 percent, the following rates will apply: P80.31 in 2020, P88.34 in 2021, P97.17 in 2022 and P106.89 in 2023.
Still wines as well as carbonated wines with more than 25-percent alcohol will be taxed the same as distilled spirits.
All wines will be subject to a 10-percent increase in excise tax starting 2024.
The higher excise taxes on alcohol products form part of the proposed tax reform package “2 Plus.”
Tax package “2 Plus” also calls for higher sin taxes, imposition of royalty on all mining operations and amendment to the Tax Incentives Management and Transparency Act to cover all agencies granting tax exemptions.
