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Philippines: Government eyes P183.2 B excise taxes from cigarettes, alcoholic drinks
MANILA, Philippines — The government is expected to generate about P183.2 billion in revenue from the excise taxes on cigarettes and alcoholic beverages this year, data from the Department of Finance (DOF) showed.
According to data from the DOF, P126.97 billion of the Bureau of Internal Revenue’s collection this year is projected to come from tobacco excise tax, 13.78 percent higher than the 2016 collection of P111.59 billion.
Another P56.23 billion will come from alcohol excise tax, 9.9 percent higher than last year’s level of P51.16 billion.
The increases in the excise tax collection from alcohol and tobacco was due to the enactment of the Tax Reform for Acceleration and Inclusion Act, which contains Package 1A of the DOF’s Comprehensive Tax Reform Program.
Meanwhile, the BIR is gearing up for administrative reforms, particularly the implementation of a new internal revenue stamp system for tobacco and alcoholic products.
In an interview, Finance Undersecretary Antonette Tionko said the new designs for tobacco tax stamps, as well as the newly crafted tax stamp system for alcoholic drinks would be implemented within the first quarter.
Tionko said the BIR is reviewing the memorandum of agreement with Apo Production Unit Inc. as there are still concerns on the designs of the stamps.
The BIR is targeting to collect P2.039 trillion this year, up 14.1 percent from its preliminary 2017 collection figure of P1.79 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 would be “achievable” with the passage of additional revenue-generating measures under the tax reform law.
Source: http://beta.philstar.com/business/2018/01/19/1779066/government-eyes-p1832-b-excise-taxes-cigarettes-alcoholic-drinks#yh6Zht6QWWWmDIqM.99