Tax collection from sugary drinks soar to P6B in Q1
As a result of Tax Reform for Acceleration and Inclusion (TRAIN) Act, the government was able to collect as much as P6 billion from sugary drinks in the first three months of the year, Bureau of Internal Revenue (BIR) said.
Once without taxes, sugary beverages now contribute a lot to the overall tax collections, according to BIR Commissioner Caesar Dulay.
As of end-March, BIR’s collections went up by 14 percent to P422.6 billion from P370.6 billion in the same period last year, a report in Philippine Daily Inquirer showed.
BIR’s collection exceeded the target for the first quarter, which was pegged at P361.8 billion.
Right now, BIR is already working on the draft revenue regulations for the implementation of the excise tax on sugar-sweetened beverage (SSB) drinks.
BIR Deputy Commissioner Marissa Cabreros said the agency is still waiting for the approval of Department of Finance (DOF) for the said draft.
“You must understand that the sugar-sweetened beverage tax is new – it’s the first time to be part of the excise tax family or tax structure, so it’s being refined,” Cabreros said in the same report.
“There are several consultations being made with the stakeholders because we don’t want to be overburdened with something that is not realistic and we cannot implement. At the same time, we want to make it easier for them to comply and also easier for us to monitor and verify their reporting,” she added.