MANILA, Philippines -- The Bureau of Internal Revenue (BIR) expects to exceed its sin tax collection target in 2015.
BIR Commissioner Kim Henares said consumption of tobacco and alcohol will continue to remain steady next year, despite an increase in excise tax rates.
"I believe we can again exceed our 2015 sin tax collection target (of P50.63 billion)," she said.
The BIR chief said manufacturers, particularly cigarette manufacturers, cannot front-load production ahead of the increase in excise taxes in January due to the stamp tax system.
"Unlike in the previous years, cigarette companies have no choice but to wait for January 2015 because we control the release of tax stamps," she said.
The BIR is targeting sin tax collection to rise 18 percent in 2015, from its target of P42.86 billion this year. Of the total, the BIR expects to collect P33.52 billion revenues from cigarettes, P9.52 billion from fermenter liquor and P7.59 billion from distilled spirits.