Sin tax dampens San Miguel liquor sales
MANILA, Philippines – Ginebra San Miguel Inc, the beverage arm of diversified conglomerate San Miguel Corp, experienced a 30% drop in volume sales after the government implemented a higher excise tax on alcohol products.
Speaking on the sidelines of the Ginebra San Miguel annual stockholders meeting on Thursday, May 9, president and COO Ramon Ang said their sales volumes have been hit due to the increase in excise tax effective January, otherwise known as sin tax reform law.
“Our beer and hard liquor business, we were greatly affected by the recent tax increase,” said Ang.
Even the usual spike they anticipate in the run-up to the elections has been dampened by the imposition of the sin tax.
“Usually before the elections, the volume should be very strong. But volume now is not strong due to impact of tax increase,” said Ang. The Philippines will hold its mid-term elections on May 13.
“We are only seeing a slow recovery because of the election. We don’t really know what is going to happen, but we hope it will go back to the same volume as last year,” he added.
In 2012, Ginebra, which is a subsidiary of San Miguel Brewery Inc, saw a drop in domestic volume of 5% from a year ago. The company sold 19% more volume for its flagship brand Ginebra San Miguel. - Rappler.com
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