Finance dept sets higher sin tax goal for 2017

ABS-CBN News

Posted at Sep 05 2016 07:03 PM

MANILA - Government revenues from so-called "sin" products are expected to be higher next year, the Department of Finance (DOF) said Monday.

The DOF said tax collection from cigarettes and alcoholic products are expected to rise 8.7 percent to P173.19 billion in 2017 from P159.36 billion this year.

Excise tax collection from tobacco next year is seen to jump 7.6 percent to P120.66 billion while revenues from excise tax on alcoholic beverages are seen to increase by 11 percent to P52.53 billion, data from the 2017 Budget of Expenditures and Sources of Financing showed.

The projected collection growth next year, however, is slower compared to this year's increase of 12.4 percent.

The finance department is studying raising sin taxes as part of President Rodrigo Duterte's tax reform program to offset an expected decline in income tax collection with lower personal and corporate income levies.