Gov't exceeds 9-month sin tax collection goal

ABS-CBN News

Posted at Dec 18 2014 01:46 PM | Updated as of Dec 18 2014 09:46 PM

MANILA – The Bureau of Internal Revenue (BIR) has again exceeded its nine-month sin tax collection target driven by nearly double than expected excise tax payments by cigarette manufacturers, data from the Department of Finance (DOF) showed.

Excise tax revenues collected by the BIR from tobacco and liquor products reached P91.64 billion from January to September, 42 percent more than the P64.54 billion nine-month target set by government.

Government revenues from so-called sin products also grew by 40 percent from P65.45 billion year-on-year.

BIR Commissioner Kim Henares attributed the higher than expected revenues from tobacco and liquor products to the steady consumption of cigarettes despite a series of tax increases since January 2013.

Henares said cigarette prices in the country remained relatively cheap compared to prices in neighboring countries.

In the first nine months of the year, excise tax revenues from cigarettes alone exceeded the P34.16 billion target by 90 percent to P64.96 billion and also increased by 56 percent year-on-year from P41.44 billion.

According to Henares, the higher excise tax revenue from tobacco products debunks the alleged illicit cigarette trade in the local market, and is merely a “speculation by losing manufacturers.”

Excise tax revenue from alcoholic products, meanwhile, reached P26.68 billion, 12 percent short of the P30.39 billion target. The figure was an 11 percent increase year-on-year from P24 billion.

The government is expecting sin taxes to reach P110.33 billion this year, P72.12 billion of which are expected to come from tobacco while P38.21 billion will come from alcoholic products.

Henares said she is confident that the BIR will exceed its target for the year. Next year, the BIR is tasked to collect P130 billion from sin products.