Excise tax collections skyrocketed in January following the implementation of the Tax Reform for Acceleration and Inclusion (Train) law, data released by the Finance department showed.
Bureau of Internal Revenue (BIR) chief Caesar recently reported P22.078 billion in collections for January, 81.69 percent higher year-on-year and surpassing the month’s P20.501-billion target, the department said in a statement on Monday.
Tobacco firms accounted for P12.139 billion, a 95.91-percent increase that also topped the P7.944-billion collection goal for the sector.
Excise tax collections from automobile sales, meanwhile, ballooned to P443.34 millon, 113.13 percent higher than last year and 29.42 percent in excess of the P342.561-million target for the month.
The take from sugar-sweetened beverages (SSBs) amounted to P2.5 billion in the same period, the Finance department said without providing a comparative figure.
It broke the amount down, however, as follows: P1.186 billion from Coca-Cola Femsa Philippines Inc. followed by Pepsi Cola Philippines Inc. (P666 million), ARC Refreshments Corp. (P293.015 million), Nestle Philippines Inc. (P143.5 million), Inter Beverages Philippines (P112 million), Asia Brewery Inc. (P18 million), Liwayway Marketing (P16.049 million), SMB Inc. (P10.726 million) and Zesto Corp. (P7 million).
Excise taxes on tobacco, vehicle sales and SSBs, among others, were increased under the Train law that took effect at the start of the year. The government has said that proceeds from higher taxes would be used for its centerpiece “Build Build Build” program.
Earlier, this month, BIR officials said that local cigarette manufacturer Mighty Corp. had paid P4 billion more in monthly taxes since global firm Japan Tobacco Inc. (JTI) took it over in 2017.
Data showed that compared to the same period in the previous year, cigarettes bearing the brands sold by Mighty yielded roughly P4 billion more in monthly excise taxes over the September-December 2017 period, or when JTI fully took over the operations of the company.