Despite dropping alcohol and tobacco sales, sin tax collections as of last June rose by nearly 50 percent or P38.5 billion, the Bureau of Internal Revenue (BIR) reported,
The BIR projected the sin tax take to reach P56.9 billion by 2016.
Even with the manufacturers of sin products reducing their output by 43 percent this year, BIR Commissioner Kim Henares said the agency is “confident” to reach and “even surpass” the target for 2013 to 2016.
As of June, sin tax collections increased by 46 percent or P38.5 billion—P22.4 billion for tobacco and P16.1 billion for alcoholic beverages.
The commissioner said that tax revenues from sin products will go up another P9 billion if alcohol and cigarette sales did not slump.
The BIR said tobacco production in the first months of the year dropped because companies front-loaded their outputs in the latter part of 2012 so as to not be under the high tax rates this year.
Meanwhile, excise tax revenue targets account for P43 billion for 2014, P50.6 billion for 2015 and P56.9 billion by 2016.
KRISTYN NIKA M. LAZO