Ex­cise tax hike on to­bacco, al­co­hol ap­proved on third read­ing

Sun Star Bacolod - - Community Bulletin -

THE House of Rep­re­sen­ta­tives ap­proved on third and fi­nal read­ing Mon­day, De­cem­ber 3, the bills seek­ing to in­crease the ex­cise taxes im­posed on to­bacco and al­co­hol prod­ucts.

The mea­sure, House Bill (HB) 8618, got 189 af­fir­ma­tive votes, while seven law­mak­ers voted against it dur­ing Mon­day’s ple­nary ses­sion.

HB 8618, au­thored by Rep­re­sen­ta­tive Ho­ra­cio Suans­ing, Deputy Speaker Sharon Garin, Rep­re­sen­ta­tives Marvin Ni­eto, Estrel­lita Suans­ing, Rodel Ba­to­cabe, Christo­pher Co, and House Speaker Glo­ria Ma­ca­pa­gal-ar­royo, seeks to ad­dress the per­ceived in­equal­ity on the ex­cise tax col­lec­tions on al­co­hol prod­ucts.

Col­lec­tions from al­co­hol prod­ucts ac­count for 30 per­cent of the ex­cise tax col­lec­tions, while cig­a­rettes cover 70 per­cent.

The bill im­poses on dis­tilled spir­its such as brandy, whisky, and al­copops a tax rate of 22 per­cent ad val­orem on the net re­tail price (NRP) per proof, plus a spe­cific tax of P30 per liter be­gin­ning 2019.

The tax will in­crease by P5 ev­ery year un­til it reaches P45 per liter in 2022. In 2023 and on­wards, the spe­cific tax for dis­tilled spir­its shall climb seven per­cent each year.

The mea­sure also in­te­grates two spe­cific tax rates for sparkling wine into a uni­tary rate pegged at P650.

This means that be­gin­ning 2019, sparkling wines will re­ceive 15 per­cent ad val­orem tax per liter plus P650 spe­cific tax per liter. The spe­cific tax will be raised by seven per­cent be­gin­ning 2020 and ev­ery year there­after.

Cook­ing wines that con­tain a salt con­tent of not less than 1.5 grams for ev­ery 100 mil­li­liter shall be ex­empted from ex­cise tax.

Mean­while, 187 law­mak­ers voted in the af­fir­ma­tive, seven voted in the neg­a­tive, and one law­maker ab­stained from the vot­ing on House Bill 8677, which seeks to in­crease the ex­cise taxes im­posed on to­bacco prod­ucts.

Un­der House Bill 8677, each pack of cig­a­rettes shall be taxed P37.50 be­gin­ning July 1, 2019 un­til June 30,


An amount of P2.50 shall be added to the rate af­ter the said year un­til it reaches P45, mean­ing cig­a­rettes per pack will be taxed P40 be­gin­ning July 2020; P42.50 be­gin­ning July 2021; and P45 be­gin­ning July 2022.

On July 2023 and ev­ery year there­after, the tax rate shall be raised an ad­di­tional four per­cent.

HB 8677 is au­thored by Rep­re­sen­ta­tives Joey Sarte Sal­ceda, An­gelina Tan, Ra­mon Ro­camora, Jo­ce­lyn Limkai­chong, Bel­laflor An­gara-castillo, Gabriel Bor­dado, Cheryl Deloso-mon­talla, Estrel­lita Suans­ing, Jose An­to­nio Sy-al­varado, An­thony Bravo, and Rodel Ba­to­cabe.

Both bills, spon­sored and de­fended on the floor by com­mit­tee on ways and means chair­per­son Rep­re­sen­ta­tive Estrel­lita Suans­ing, seek to re­duce the con­sump­tion of al­co­hol and to­bacco and to gen­er­ate rev­enue to fund the Uni­ver­sal Health Care pro­gram of the gov­ernm e n t . / Sun­starphilip­pines

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