MANILA, Philippines - The government has collected P32.284 billion in excise taxes from January to June, higher than the P29.446 billion generated in the same period last year, latest data from the Department of Finance (DOF) showed.
In June alone, excise tax collections amounted to P6.010 billion, also above the P4.969 billion collected in the same month last year.
The excise tax collections formed part of the tax revenues of government, which totaled P540.532 billion as of end-June.
With the latest excise tax collection figures, the government hopes to meet its target to collect P61.7 billion in excise tax this year, or P1.2 billion more than the P60.5-billion target set for last year.
Of the P61.7-billion target, the government expects the highest increase to come from taxes on alcohol and cigarettes. The government expects to generate P22.3 billion from excise tax on alcohol this year, slightly higher than the P20.6-billion target for last year.
Similarly, the government expects to collect P25.4 billion in excise tax on tobacco, higher than the P24.2-billion goal set in 2009. Revenues from tobacco inspection are expected to be the same amount at P6 million.
On the other hand, excise tax on fuel is expected to decline to P10.8 billion this year from the P12.7-billion collection target set for last year.
Excise tax on automobiles, meanwhile, is expected to hit P2.14 billion from the P2.02-billion goal for 2009 while other excise tax revenues are expected at P166 million this year from P157 million last year.
The government has been trying to push for the passage of a pending measure seeking to rationalize excise taxes.
According to government estimates, the proposed amendments to the sin tax law could raise as much as P19 to P20 billion in the first year of implementation, P30 to P40 billion in the second year, P40 to P50 billion in the third year and P60 to P70 billion in the fourth year.
Former Finance Secretary Margarito Teves had pushed for a two-tier excise tax structure to be put in place in 2012 and 2013 until it is harmonized to a single rate in 2014. This was envisioned to replace a four-tier system that resulted into a 640- percent tax differential between low-priced and premium-priced brands.