Excised taxes collected from the so-called “sin products” such as cigarettes and alcohol bring about a massive contribution to the country’s economic growth. Government revenues increase continuously in 2015 based on the data published by the Bureau of Internal Revenue (BIR).
A whopping 39.6 percent increase in collection for the month of November or P16.3 billion was gained by the government, according to the BIR.
For a period of 11 months this year, from January to November, taxes collected from cigarettes, fermented liquors, wine and other alcoholic beverages have increased by 26 percent or P123.64 billion as compared to the same period in 2014.
Total taxes collected from sin products last year was P114 billion.
Cigarettes have the biggest contribution in terms of revenue for the government. In comparison to last year’s collection, taxes collected from cigarettes alone have risen to 54.52 percent for the month of November and 33.22 percent for the 11 month period.
Under RA 10351, cigarette packs with a retail price of below P11.50 are taxed P21 this year higher than the P17 last year. Those with prices higher than P11.50 are taxed P28 which slightly increased than last year’s P27.
On the other hand, taxes collected from wine from January to November was P28 million, a bit lower by 0.53 percent compared to last year’s same period.
This year, for the month of November, taxes from wine grew by 65 percent (P11 million); P2.3 billion (up by 3.1 percent) from fermented liquors and P1.4 billion (up by 8.6 percent) from distilled spirits and compounded liquors.
Fermented liquor that cost less than P50.60 per litre are now taxed P19 compared to last year’s P17 and those higher than P50.60 are levied P22 which is slightly higher from last year’s P21.
For 2015, distilled spirits are taxed an additional P20 plus 20 percent of their net retail price per proof from P20 plus 15 percent last year.
The Sin Tax Law or RA 10351 was implemented in 2012.
Sources: Business Inquirer, Manila Bulletin, Rappler / Featured Image Credit: Inquirer.net
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