Excise tax collections hit P152.7B in first half
Excise tax collections accelerated in the first six months of the year following the implementation of a tax reform law, Finance department data showed, with the bulk coming from so-called “sin” products.
Finance Assistant Secretary Mark Dennis Joven reported P152.72 billion in collections for the period, 71.4 percent higher year on year and surpassing a P136.82-billion target.
Tobacco firms accounted for P78.95 billion, a 53.5-percent increase that also topped the P51.42-billion collection goal for the sector.
“Analysis show that there is some front-loading [from tobacco firms], which boosted collections for the first half of the year,” Joven told reporters.
Excise tax collections from alcohol sales, meanwhile, ballooned to P33.51 billion, 19.2 percent higher than last year and 28.3 percent in excess of the P26.12-million target.
Automobile sales taxes were up 40.6 percent to P2.92 billion from a year ago but fell 14 percent short of the P3.40-billion goal.
Petroleum excise tax collections grew 180.8 percent to P18.03 billion, also missing the target of P26.27 billion.
The take from sugar-sweetened beverages amounted to P17.65 billion in the same period, 35.2 percent lower than the P27.26 billion target.
No collections were recorded from cosmetics procedures, which was targeted to contribute at least P50 million during the period.
Lastly, collections from “non-essentials” declined by 13 percent to P90 million but surpassed the goal by 12.7 percent.
Excise taxes on tobacco, vehicle sales and sugar-sweetened beverages, among others, were increased under the Tax Reform for Acceleration and Inclusion Act that took effect at the start of the year.
Joven said the Finance department was optimistic that continued excise tax collection growth would help the Bureau of Internal Revenue (BIR) meet its 2018 revenue goal of P2.039 trillion.
“We hope that this trend continues until the end of the year,” he added.
Data on BIR collections for the first half have yet to be released. Last month, the agency reported a 15-percent year-on-year increase as of end-May to P830.5 billion.
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