i create. i am a creation.

House of Representatives passes Sin Tax Reform Bill

Posted on: June 6, 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.

TOBACCO/CIGAR/ CIGARETTE

MACHINE-PACKED

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

LIQUOR

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

FERMENTED LIQUOR (Beer)

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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

life in business journalism

crazy. exciting. boring to some but hey, you get to understand the world better when you're a business journalist. you learn to be patient with tons of documents, make sense of numbers and charts. all geeky stuff. this is my story, behind the scenes.
June 2012
M T W T F S S
« May   Oct »
 123
45678910
11121314151617
18192021222324
252627282930  
Advertisements
%d bloggers like this: