Sin tax collections seen breaching P100 B mark
MANILA, Philippines - The government expects sin tax collections to breach the P100 billion mark next year as excise taxes on tobacco and alcohol are expected to increase further.
Sin tax collections are forecast to reach P104.8 billion in 2014, up 22 percent from P85.85 billion this year.
Of the total, P65.15 billion will come from revenues from tobacco while the balance of P39.64 billion will come from alcohol.
In the first half this year, sin tax collections rose 46 percent to P38.5 billion even as volume of sales of cigarettes and alcohol fell 43 percent.
The BIR expects to sustain the growth in excise tax collections as tobacco firms run out of stock.
The government expects tax revenues to rise by 44 percent this year with the six tax measure, which took effect on Jan. 1.
For 2014, the government aims to collect P42.86 billion in incremental revenues. Collections are expected to increase further to P50.63 bilion in 2015 and P56.86 billion by 2016.
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