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Archive for June 2012

[View the story “House of Representatives passes Sin Tax Reform Bill” on Storify]

So what is now the final House version of the proposed law?

–  Simplifies the basis of excise taxation for alcohol products, which is based on per proof liter for distilled spirits, per liter of volume capacity for wines and fermented liquors;

–  Simplifies the basis of excise taxation on tobacco products: cigars – per cigar; cigarettes packed by hand – per pack; and cigarettes packed by machine – per pack;

–  Provides an 8-percent increase in the excise tax rates every two years effective January 1, 2015 until January 1, 2025 for distilled spirits, wines, fermented liquors, tobacco products, cigars and cigarettes through revenue regulations issued by the Secretary of Finance;

–  Removes the price/brand classification freeze on alcohol and tobacco products;

–  Allocates the incremental revenues from the excise tax on tobacco products for the provinces producing burley and native tobacco, in accordance with the volume of tobacco leaf production, to promote economically viable alternative programs for tobacco farmers and workers;

–  Provides additional funding for the universal health care program of government.



Effective on January 1, 2013

P11.50 and below per pack – tax rate P12

P11.50 and above per pack – tax rate P28.30

Effective on January 1, 2014

P11.50 and below per pack – P22

P11.50 and above per pack – P30


DISTILLED SPIRITS (Whisky, Brandy, Rhum, Gin, Vodka)

Less than P90 net retail price (750 ml volume) – tax rate P20

Between P90 and P150 – tax rate P80

Above P150 – tax rate P320

WINES (Sparkling Wines and Champagne)

P500 and below net retail price – tax rate P250

P500 and above net retail price – tax rate P700


P50.60 and below net retail price – tax rate P13.75

P50.60 and above net retail price – tax rate P18.80

As BIR Commissioner Kim Henares said, the sin tax reform has a long way to go and the battle might be tougher at the Upper Chamber of Congress.

  1. likhanews5
    Atty Arnie Carino told @interaksyon Philip Morris says they are asking for tax rate on a par with that of alcohol. #sintaxreform
    Mon, Jun 04 2012 05:59:54
  2. likhanews5
    Atty Carino told @interaksyon think the rate imposed on tobacco is too much vs alcohol has virtual tax holiday #sintaxreform
    Mon, Jun 04 2012 06:03:38
  3. likhanews5
    Atty Carino told @interaksyon that alcohol products’ tax rate even went down from 20% to 18% with HB 5727 as amended #sintaxreform
    Mon, Jun 04 2012 06:09:26
  4. likhanews5
    Isidro T. Ungab 3rd district, Davao City HB 5727 sponsor; Magtanggol T. Guinigundo 2nd district, Valenzuela City #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:26:01
  5. likhanews5
    Guinigundo asks questions on the alcohol aspect of the bill, the WTO-EU decision that PH must comply with #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:32:30
  6. likhanews5
    Ungab: WTO protested the discriminatory excise taxes; classification is based on raw materials #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:35:10
  7. likhanews5
    Ungab: Local alcohol is distilled using local materials, thus, lower excise taxes, this violates GATT #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:36:05
  8. likhanews5
    Ungab: Article 3 of GATT, requires products to be treated the same as imported products @interaksyon #sintaxreform
    Mon, Jun 04 2012 06:37:34
  9. likhanews5
    Guinigundo: does the WTO prescribe a unitary tax rate? Ungab: No #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:43:24
  10. likhanews5
    Guinigundo: Aarticle 13 of GATT provided some leeway in protecting the 3rd countries’ industries @interaksyon #sintaxreform
    Mon, Jun 04 2012 06:44:32
  11. likhanews5
    Ungab: Article 13 of GATT was not invoked by PH @interaksyon #interaksyon
    Mon, Jun 04 2012 06:45:25
  12. likhanews5
    Gunigundo: The reason why PH govt did not invoke? Is it the March 2013 deadline WTO’s decision? #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:51:14
  13. likhanews5
    Ungab: It is a mutual agreement among the parties involved. Other countries were given 15 months to comply #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:54:03
  14. likhanews5
    G: WTO decision rendered decision saying recomended tax structure that the PH should follow? #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:54:28
  15. likhanews5
    Ungab: There is no specific WTO recommendation as to the tax structure #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:56:45
  16. likhanews5
    G: What was the reason stated by WTO why PH makes raw materials as basis for taxing alcoholic products #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:57:44
  17. likhanews5
    Gunigundo: WTO contends ingredients do not really matter as long as alcohol is produced #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:58:24
  18. likhanews5
    Gunigundo: What is the basis for determining the price level in the tiers? #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:59:29
  19. likhanews5
    Gunigundo: Is there a DoF study determining the price threshold? #sintaxreform @interaksyon
    Mon, Jun 04 2012 06:59:52
  20. likhanews5
    Gunigundo: I would like to believe the BIR made a price survey. When was the last price survey that BIR made? #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:00:33
  21. likhanews5
    Ungab: 2010 was the last BIR price survey @interaksyon #sintaxreform
    Mon, Jun 04 2012 07:01:13
  22. likhanews5
    Gunigundo: Do you think that you need to have a more recent survey to have more convincing powers? #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:02:55
  23. likhanews5
    Gunigundo: Is it safe to say there is no recent survey as basis? We do not want to be shooting darts. @interaksyon #sintaxreform
    Mon, Jun 04 2012 07:03:21
  24. likhanews5
    Ungab: the P90-bracket was based on the consultations with stakeholders #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:05:44
  25. likhanews5
    Gunigundo: Who are these stakeholders? Ungab: Industry players #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:08:59
  26. likhanews5
    Gunigundo: Can you name these the stakeholders that DoF consulted? Ungab: The Distillers Assoc. of the Phils. #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:09:43
  27. likhanews5
    Gunigundo: Baka naman may pinapaboran tayong kumpanya ng alcohol sa P90 na yan. @interaksyon #sintaxreform
    Mon, Jun 04 2012 07:03:50
  28. likhanews5
    Gunigundo: Did they come up with these price levels? Consultations couldnt be substituted with BIR price surveys #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:10:53
  29. likhanews5
    Gunigundo: HB 5727 adjusts rates every 2 years for inflation. What about the tiers? #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:13:35
  30. likhanews5
    Gunigundo: Why don’t we include the tiers? In a matter of years there would be no bracket because of inflation. #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:14:11
  31. likhanews5
    Gunigundo: We would end up with a situation that all products would be moving up the next bracket #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:14:40
  32. likhanews5
    Ungab: assumption is based on the inflation of 4% yearly; We are not amenable to price classification freeze @interaksyon #sintaxreform
    Mon, Jun 04 2012 07:15:40
  33. likhanews5
    Ungab: If we do, in the long run would have the same effect as what happened for so many years #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:18:40
  34. likhanews5
    Gunigundo: If we hike tax on alcohol because of health reasons, then we must tax hamburgers, lechon, chicharon #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:20:26
  35. likhanews5
    Gunigundo: why is DoF allergic to indexation of alcohol products? #sintaxreform @interaksyon
    Mon, Jun 04 2012 07:22:02
  36. likhanews5
    Ungab: Alcohol and tobacco are harmful to health; some vehicular accidents are caused by drunk-driving #sintaxreform @interaksyon
    Mon, Jun 04 2012 10:57:56
  37. likhanews5
    Ungab: Alcohol and tobacco cannot be compared with food (i.e. chicharon, lechon) @interaksyon #sintaxreform
    Mon, Jun 04 2012 10:58:36
  38. likhanews5
    Ungab: that’s why it’s called sin taxes, we need to regulate, curb the habit of drinking and smoking #sintaxreform @interaksyon
    Mon, Jun 04 2012 10:59:13
  39. likhanews5
    Ungab: that’s why we have to make it less affordable to the young and the poor #sintaxreform @interaksyon
    Mon, Jun 04 2012 10:59:40
  40. likhanews5
    Gunigundo: Kumain ka ng chicharon araw-araw di ba mamatay ka rin ng maaga? *Session hall bursts into applause* #sintaxreform @interaksyon
    Mon, Jun 04 2012 11:00:57
  41. likhanews5
    Philip Morris Fortune Tobacco workers & farmers in white in the gallery #sintaxreform @interaksyon http://lockerz.com/s/214391421
    Mon, Jun 04 2012 11:04:06
  42. likhanews5
    Gunigundo: Why are we imposing tax on raw materials? Why do we have different bases in imposing excise tax? #sintaxreform @interaksyon
    Mon, Jun 04 2012 11:06:25
  43. likhanews5
    Gunigundo: Aren’t excise tax imposed based on finished products? why are we taxing based on raw materials? #sintaxreform @interaksyon
    Mon, Jun 04 2012 11:07:15
  44. likhanews5
    Ungab: Ethyl alcohol is already a finished product, distilled into brandy #sintaxreform @interaksyon
    Mon, Jun 04 2012 11:08:39
  45. likhanews5
    Gunigundo: why are discriminating against small breweries and SMEs? #sintaxreform @interaksyon
    Mon, Jun 04 2012 11:09:18
  46. likhanews5
    Gunigundo: Maybe we are arbitrarily taxing small, micro-breweries; your tax rate is very high #sintaxreform @interaksyon
    Mon, Jun 04 2012 11:09:47
  47. likhanews5
    RT @meralco: Scheduled Power Interruption affecting portions of Sta. Cruz, Manila & Quezon CityA 30-minute … http://m.tmi.me/r6ikS

    Mon, Jun 04 2012 10:49:01
  48. likhanews5
    Gunigundo: When you are a small distiller/brewery, the 18%-20% tax is very high @sintaxreform @interaksyon
    Mon, Jun 04 2012 11:10:27
  49. likhanews5
    Ungab: the microbreweries are in pubs that are patronized by connoiseurs, catering to the rich people #sintaxreform @interaksyon
    Mon, Jun 04 2012 11:11:55
  50. likhanews5
    Ungab: based on present system under the 1997 rates, these microbreweries are charged the highest tax rates #sintaxreform @interaksyon
    Mon, Jun 04 2012 11:12:43
  51. likhanews5
    Gunigundo wraps up questioning. Session for HB 5727 or #sintaxreform suspended. @interaksyon
    Mon, Jun 04 2012 11:13:42

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June 2012
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