07 Dec Congress Approves Higher Tax On Alcoholic Products & Cigarettes
Photos: GMA Network / Inquirer.net
Mga higala! The House of Representatives has approved House Bills (HB) No. 8677 and 8618, which will increase taxes on alcoholic products and cigarettes.
According to an article by Rappler, HB 8677 would increase the tax on every cigarette pack from the current P32.50 to P37.50 in July 2019. The said bill will then impose a P2.50 tax increase every year until July 2022, when a cigarette pack would cost P45 each. A 4% tax increase would then be imposed annually starting July 2023.
Meanwhile, HB 8618 would increase excise taxes for distilled spirits like gin, rum, and vodka. The proposed increases are as follows:
- Starting January 2019, 22% ad valorem tax on the net retail price of alcoholic products (excluding excise and value-added taxes) plus a specific tax of P30 per proof liter.
- In addition to the 22% ad valorem tax, specific tax per proof liter will increase to P35 in 2020, P40 in 2021, and P45 in 2022.
- From 2023 onwards, on top of the ad valorem tax, the specific tax will be increased by 7%.
- For sparkling wines, the bill proposes an ad valorem tax of 15% of the net retail price (excluding excise and value-added taxes) per liter and a specific tax of P650 per liter. The specific tax will increase by 7% in 2020 onwards.
- For still and carbonated wines with 14% alcohol or less, it will be P40 per liter, to be increased by 7% starting 2020. For still and carbonated wines with more than 14% alcohol, taxes will also increase by 7% on top of P80 per liter from 2020 onwards.
The tax on fermented liquors will be P28 per liter in 2019, P32 per liter in 2020, P34 per liter in 2021, and P36 per liter in 2022.
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