‘Sin’ taxes seen to raise ₱22-B in 2020 – solon

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Metro Manila (CNN Philippines, January 28)— The newly-signed law hiking excise taxes of tobacco and liquor products is expected to raise around ₱22 billion in revenue in its first year of implementation, House Ways and Means Committee Chair Rep. Joey Salceda said Tuesday.

In an interview with CNN Philippines’ The Source, Salceda said the so-called “sin taxes” will particularly raise ₱1.8 billion from the heated tobacco product industry, and ₱1.6 billion from salt nicotine products this year.

Majority of the taxes will be allocated for the government’s Universal Healthcare program—a move seen as one of the major selling points of the measure.

President Rodrigo Duterte last week signed Republic Act No. 11467, which sets higher market prices on several tobacco and alcoholic products.

Starting January, distilled spirits like brandy, gin, vodka, tequila, and whiskey would be charged a specific tax of ₱42 per proof liter, on top of a 22 percent tax representing excise and value-added taxes. Taxes will rise to ₱47 per liter next year, ₱52 per liter in 2022, ₱59 per liter by 2023, and ₱66 pesos by 2024.

Taxes for beer and fermented liquor will rise to ₱35 per liter this 2020, and will add ₱2 per liter each succeeding year until 2024.

Under the measure, heated tobacco products will be taxed ₱25 per pack starting this year. This will increase by ₱2.50 each succeeding year until it reaches ₱32.50 in 2023. Vape or vapor products will meanwhile be taxed depending on its content.

READ: Duterte signs law raising taxes on alcohol, e-cigarettes

Salceda said the measure’s much-awaited passage will help solve and curb various issues such as binge drinking, as well as alcohol-related deaths, accidents, and violence.

CNN Philippines’ Melissa Lopez contributed to this report.