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Philippines: P52.13 B taxes eyed from sugary drinks, cosmetic procedures
MANILA, Philippines — The Bureau of Internal Revenue (BIR) expects to generate P52.13 billion in additional revenue this year from the collection of 2018.
According to data from the Department of Finance (DOF), P52.03 billion of the BIR’s collection this year is expected to come from the excise tax on sugar-sweetened beverages. The amount is about P5 billion higher than the agency’s earlier estimate of P47 billion.
Another P100 million of the BIR’s revenue this year is also expected to come in from excise taxes on cosmetic surgeries.
These taxes were implemented starting this year, following the enactment of the the Tax Reform for Acceleration and Inclusion Act (TRAIN), which contains Package 1A of the DOF’s Comprehensive Tax Reform Program (CTRP).
The law imposes an excise tax of P6 per liter of volume capacity on beverages using caloric sweeteners and non-caloric sweeteners while an excise tax of P12 per liter was levied on drinks with high fructose corn syrup.
An excise tax of five percent will be collected based on the gross receipts derived from invasive cosmetic procedures intended solely to improve, alter and enhance a patient’s appearance.
The BIR has earlier expressed concern over the implementation of the cosmetic tax, saying the bureau would need to rely on the doctors and clinics to charge the taxes on their patients.
The agency, however, said it would be difficult to monitor all patients who undergo cosmetic procedures.
For 2018, the BIR is targeting to collect P2.039 trillion, up 14.1 percent from its preliminary 2017 collection figure of P1.786 trillion. This corresponds to 11.6 percent of GDP, and about 72 percent of the national government’s P2.806 trillion revenue program for this year.
Finance Secretary Carlos Dominguez expressed confidence the BIR’s target “is achievable.”
Dominguez said to meet this goal, the government would need to ensure the passage of Package 1B of the CTRP and increase the collection efficiency of the bureau.
Package 1B involves the proposed tax amnesty program, adjustments in the motor vehicle users charge, and amendments in the bank secrecy law. These measures are expected to be tackled by the Congress in the first quarter of this year.
Source: http://beta.philstar.com/business/2018/01/17/1778389/p5213-b-taxes-eyed-sugary-drinks-cosmetic-procedures#O9pV9xbDcfCLDqDz.99