Sin tax law generates P51-B in fresh revenues
MANILA, Philippines - The government generated P51.4 billion in fresh revenues from the implementation of the sin tax reform law in 2013, surpassing expectations.
Republic Act 10351 or Sin Tax Reform Act of 2012, which took effect in January 2013, was projected to generate P34.1 billion in incremental revenues in its first year of implementation.
Of the total incremental revenues from the new law, the government generated P42.1 billion in fresh taxes from tobacco products, and P9.3 billion from alcoholic beverages in 2013.
The government had only projected P23.4 billion in new excise tax collections from cigarette manufacturers and P10.6 billion from manufacturers of alcohol beverages.
Finance Secretary Cesar Purisima had earlier said the collection from sin taxes had significantly boosted government revenues.
"I see a better prospect in 2014 for the sin tax law because there are no longer overstocking and price manipulation. The numbers were quite good (in 2013) it helped the Bureau of Internal Revenue dramatically," he said.
With the implementation of the sin tax reform law, the BIR's total excise tax collections in 2013 surged 85.6% to P103.3 billion from P55.7 billion in the previous year.
Data from the DOF showed total excise tax collections from tobacco products doubled to P70.4 billion in 2013 from P32.2 billion a year before. On the other hand, total excise tax revenues from alcoholic beverages jumped 40% to P33 billion.
"The significant increase in collections came even with an equally significant drop in the volume of cigarette ad alcohol produced in the market," the DOF said.
This year, the government is targeting a 22% increase in total excise tax collections from tobacco products and alcoholic drinks to P104.79 billion.