Sin tax take reaches P17.7B in September

MANILA -- The Bureau of Internal Revenue (BIR) posted P17.7 billion sin tax collection in September 2017, up 12 percent (%) from P16.67 billion a year ago.

Department of Finance Undersecretary Antonette Tionko told reporters the bulk of the revenues, amounting to P11.1 billion, was contributed by tobacco products while the balance of P6.6 billion came from alcohol products.

Tionko, who is also the head of the Revenue Operations Group (ROG), said collections from tobacco products rose by 14% year-on-year.

Of the total tobacco product taxes, P4.6 billion was collected from JTI-Mighty, up 281% from year-ago’s P1.2 billion, she said.

Cigarette maker Mighty Corp. is facing several tax evasion cases but has promised to pay its P25 billion tax liabilities.

Last July, it paid an initial P3.5 billion while the balance will be paid by JT International Philippines (JTI), which has bought the local cigarette manufacturing company’s business for P45 billion.

Tionko is optimistic of the sustained growth of cigarette tax collections “because you have an international company that is eager to compete in this market.”

Finance Secretary Carlos Dominguez III earlier said the P25 billion tax settlement by Mighty Corp. and JTI is seen to rise to P30 billion once value added tax (VAT) is computed.

The DOF targets to collect P173.19 billion from sin taxes this year.