Cigarette tax take up 8% to P147.5B in 2019

MANILA, Philippines — Cigarette excise tax collections increased 8 percent to P147.5 billion in 2019 on the back of higher rates slapped under the Tax Reform for Acceleration and Inclusion (TRAIN) Act.

The latest Department of Finance (DOF) data showed that the taxes paid by cigarette firms last year increased from P136.5 billion in 2018, the TRAIN Law’s first year of implementation.

Cigarette excise taxes cornered more than half of 54.8 percent of the total “sin” tax collections worth P269.1 billion in 2019.

“Sin” products also included alcoholic drinks and sugar-sweetened beverages.

The higher excise taxes levied on sugary drinks were also mandated under the TRAIN Law.

For cigarettes, e-cigarettes and alcohol, another round of excise tax increases took effect last Jan. 1 under two laws—Republic Act No. 11346 and RA 11467.

From cigarettes alone, additional excise tax collections worth P14.9 billion were expected this year with the implementation of RA 11346 in full swing, Finance Undersecretary Karl Kendrick T. Chua said last week.

Meanwhile, the higher levy on alcohol, heated tobacco, and vapes under RA 11467 will raise an additional P22.2 billion this year.

Edited by MUF