BIR Exceeds Sin Tax Collection Goal

Source from:  Manila Bulletin 12/19/2014

The Bureau of Internal Revenue (BIR) has exceeded anew its sin tax collection target in the first nine-months of the year due to almost double than expected excise tax payments by cigarette companies.

Data from the Department of Finance showed yesterday that excise tax revenues from tobacco and alcoholic products surpassed the P64.54 billion target for January to September this year by 42 percent to P91.64 billion.

Year-on-year, government revenues from sin products also grew by 40 percent from P65.45 billion.

BIR Commissioner Kim S. Jacinto-Henares, said the higher than expected revenues from sin product is attributable to steady consumption of cigarettes despite a series of tax increases since January last year.

Jacinto-Henares explained the price of cigarettes remains relatively cheap in the country compared with some neighboring nations.

In January to September 2014, excise tax revenues from cigarettes exceeded the P34.16 billion target by 90 percent to P64.96 billion and also grew by 56 percent year-on-year from P41.44 billion.

Jacinto-Henares said the way above excise tax revenue from tobacco products only proves that the alleged illicit cigarette trade in the local market is merely a "speculation by losing manufacturers."

DOF data, meanwhile, showed that excise tax revenue from alcoholic products fell short of the P30.39 billion target by 12 percent to P26.68 billion, but increased by 11 percent year-on-year from P24 billion.

For this year, the government is expecting sin taxes will reached P110.33 billion. Of that amount, revenues from tobacco are seen to reach P72.12 billion while alcoholic products are projected to amount P38.21 billion.

Jacinto-Henares said she is confident that they will exceed the target for this year.

In 2015, the BIR is tasked to collect P130 billion from sin products, and Jacinto-Henares said she is optimistic that they will also surpass the goal for the third-year. Enditem