Sin tax collection exceeds target in first half

Rappler.com

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Sin tax collection exceeds target in first half
The government collects higher-than-expected excise taxes from sin products tobacco and alcohol

 

MANILA, Philippines – The total collection of excise taxes on “sin” products in the first half of 2014 exceeded the Aquino administration’s goal by nearly 32%.

Data from the Bureau of Internal Revenue (BIR) showed that the government was able to collect P45.99 billion ($1.05 billion*) in the first semester of 2014, beating its target of P34.95 billion ($796.33 million) for said period.

The collection was also 29.68% higher than the P35.46 billion ($808.57 million) recorded in January to June last year.

The excise tax revenues collected from tobacco products amounted to P28.18 billion ($642.44 million), 95% higher than the P14.46 billion ($329.66 million) target. It was also a double-digit increase of 44% from the P19.51 billion ($444.73 million) collected from cigarettes a year ago.

Sin tax collection on alcohol below target

On the other hand, excise tax collection from alcoholic beverages fell 13% below the P20.49 billion ($467.04 million) target, with revenues amounting to P17.81 billion ($405.99 million). The amount, however, was 12% higher than the P15.95 billion ($363.50 million) collected in the first half of 2013.

President Benigno Aquino III signed Republic Act 10351 or An Act Restructuring the Excise Tax on Alcohol and Tobacco Products into law in December 2012. The law was implemented in January 2013.

The law imposes a two-tier excise tax system for cigarettes and alcohol products from 2013 to 2016 before imposing a uniform rate in 2017.

The BIR’s excise tax collection goal for this year is P124.17 billion ($2.3 billion), representing 8.5% of the revenue agency’s full-year collection target of P1.46 trillion ($33.30 billion). – Rappler.com

 

 

 

 

 

 

*($1 = P43.84)

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