Sin tax up by over P5B


GOVERNMENT’s sin tax collection in the first four months of this year has increased by more than P5 billion (up 16.5 percent) compared with January to April 2015. Collections this year amounted to P35.50 billion, against P30.47 billion in the year-earlier period.

A significant trend here is that Filipinos are now smoking less—largely due to the implementation of the Graphic Health Warning Law—and drinking more. The nationwide consumption of fermented liquors increased 14.6 percent to 132 million liters, while consumption of distilled spirits rose by 15.8 percent to 33 million liters.

Thus, tax revenue from tobacco dropped 11.9 percent in April this year to P4.88 billion from P5.54 billion in April last year, and revenue from alcoholic products increased by 23.38 percent to P4.01 billion in April from P3.25 billion a year ago, thus increasing the total sin tax collection by 1.1 percent to P8.89 billion from P8.79 billion a year ago
Breaking down April’s take from alcoholic beverages, the BIR said collections from fermented liquors rose 24.5 percent to P2.84 billion from P2.28 billion a year-ago, followed by collection from distilled spirits and compounded liquors which increased by 20.6 percent to P1.17 billion from P970 million in |April 2015.

For the four-month period, fermented liquor sales totaled P11.52 billion, an increase of 29.1 percent from P8.92 billion. Cigarette packs sold, meanwhile, decreased by 25.8 percent to about 179 million packs.

Collections from distilled spirits/compounded liquors rose by 7.9 percent to P4.21 billion from P3.90 billion.

The take from excise tax collections from tobacco products amounted to P19.77 billion, 12 percent higher compared with the P17.65 billion during same period in 2015.

For the first four months of 2016, the volume of removals for fermented liquors posted an 18.7 percent increase to 536 million liters, while distilled spirits rose by 3.5 percent to 119 million proof liters.

Cigarettes plunged by 1.9 percent to 728 million packs.

“Sin tax reform of 2013 is a touchstone of synergistic public policy serving both our fiscal and health priorities. I look forward to seeing improving collections and healthier collections in the next 6 years and beyond,” said outgoing Finance Secretary Cesar Purisima.


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