• 2015 sin tax revenue tops target, surges 25%

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    “Sin” tax collections exceeded the target in 2015, posting double-digit growth and driven mainly by collections from cigarette products the Bureau of Internal Revenue (BIR) reported on Tuesday.

    Tax bureau data showed excise tax revenues from tobacco and alchohol products hitting P141.84 billion last year, growing by 25 percent from 2014’s P112.81 billion and also surpassing the government’s P119.08-billion target.

    Cigarettes accounted for the bulk or P100.02 billion, up 32 percent from the previous year, followed by fermented liquor, collections from which grew by 14 percent to P28.26 billion; distilled spirits/compounded liquors, up 7 percent to P13.51 billion; and wines, up 25 percent to P50 million.

    Removal volumes for cigarettes increased by 9.12 percent to 4.273 billion packs.

    Fermented liquor saw a 1.44-percent increase to 1.431 billion liters, while distilled spirits/compounded liquors/wines declined by 4.19 percent to 398 million liters.

    Finance Secretary Cesar Purisima said the revenue growth was “no small feat.”

    “I expect Commissioner [Kim] Henares and the BIR to continue to expand the fiscal space we need to invest more heavily in universal healthcare,” he added.

    With figures in for the third year of the revised sin tax law’s implementation, Purisima claimed the results were a lesson in good governance, with sound policy and enforcement going hand in hand to deliver results for the uncovered and most vulnerable.

    Republic Act 10351, signed by President Benigno Aquino 3rd in 2012, restructured the excise taxes on alcohol and tobacco products, raising rates starting 2013 and every year thereafter.

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