From ‘sin’ to Stamina
by FFE PH News Staff
The Bureau of Internal Revenue (BIR) announced that it expects incremental revenue of Php42.86b from sin tax this year. This comes after the second round of the sin tax law was implemented starting 1 January 2014, boosting cigarette prices by Php5 per pack and alcohol products by Php17 per litre.
About Php99.7 billion in excise taxes from tobacco and alcohol products is expected to be collected by the bureau for 2014. The government reiterated that part of this projected amount will be channelled to healthcare and livelihood support, especially for those who are working in the alcohol and tobacco industries.
Under the revised Sin Tax Law of 2012, 15% of the incremental revenue will be divided among the provinces producing barley and tobacco and shall be used ‘for programmes to promote economically viable alternatives for tobacco farmers and workers.’
In addition, 80% of the remaining incremental revenue will be given to the National Health Insurance Programme for universal healthcare while 20% will be set aside for medical assistance and improvement of healthcare facilities around the country.
Last year, the BIR surpassed its target collection of Php85.86b in excise tax by Php6b. The bureau said it hopes to surpass projected 2014 collections by the end of the year.