MANILA, Philippines - The government surpassed its goal for excise tax collections on alcoholic beverages and tobacco products in the first four months of the year, data from the Bureau of Internal Revenue (BIR) showed.
Excise tax collections from all sin products amounted to P23.02 billion from January to April, up 11.83 percent from P20.58 billion in the same period last year. The figure was higher than the bureau’s P21.74-billion target for the period.
BIR data showed excise tax collections from cigarettes went up 14.22 percent to P11.34 billion, exceeding the P10.85-billion goal.
Those collected from fermented alcohol beverages climbed 7.23 percent to P7.66 billion, while excise tax raised from distilled spirits, meanwhile, jumped 14.43 percent to P4.014 billion.
The collections on alcoholic beverages also breached the P10.89-billion target for the four-month period, BIR data showed.
The Sin Tax Law, or RA 10351, took effect on Jan. 1 last year. This effectively raised the prices of alcohol and tobacco products to raise more revenues for the government.
The law requires that 15 percent of the revenue collected from excise tax on tobacco products be used to enhance the livelihood of tobacco farmers across the country.
The bulk or 80 percent of the remaining incremental revenues, meanwhile, are mandated to be used for the government’s health care programs nationwide.