Sin tax collections, or excise taxes from cigarettes and alcoholic beverages, rose 11.83 percent year-on-year in April to P23 billion, exceeding the four-month target of the Bureau of Internal Revenue (BIR).
Data from the tax bureau showed that total sin tax collections from January to April 2014 amounted to P23 billion, or P2.43 billion higher than the P20.58 billion recorded during the same period last year.
The cumulative figure for the first four months of the year exceeded the P21.74 billion collection target of the BIR for the period.
A breakdown of the sin tax collections showed that excise taxes on cigarettes from January to April amounted to P11.33 billion, 14.22 percent or P1.41 billion higher than the P9.92 billion collected from January to April 2013.
For fermented liquor, collections reached P7.66 billion in the first four months, an increase of 7.23 percent or P516 million from the P7.14 billion recorded a year earlier.
Tax collections for distilled spirits also rose by P506 million or 14.43 percent to P4.01 billion, from P3.50 billion a year ago.
The Aquino administration signed the Sin Tax Reform Law in December 2012, which took effect on January 2013. The measure aims to pump revenue into the government’s universal healthcare and other programs that directly benefit the public.
By raising the sin tax rates, the government expects to collect at least half a trillion pesos from 2013 to 2017, with the bulk of the collection coming from the tobacco industry.
Under the Sin Tax Reform law, tax rates on alcoholic beverages and tobacco have been raised to boost state revenues and reduce the incidence of smoking.
The increase will be implemented annually for most products until 2017, after which the tax rate will be indexed to inflation to avoid eroding government revenues.