Higher tax on alcoholic drinks mulled
In a bid to reduce consumption on ‘sin’ products, the government is planning to slap higher excise tax on alcoholic drinks by 2020.
A Philippine Daily Inquirer report showed an “updated proposal” from the Department of Finance (DOF) wherein the latter wants to apply an ad valorem tax of 25 percent on distilled spirits starting 2020.
“Distilled spirits will also be slapped a specific tax of 40 percent per proof liter in 2020, 45 percent in 2021, 50 percent in 2022, 55 percent in 2023, and a yearly 10-percent increase starting 2024,” the report said.
“Fermented liquors, per liter of volume capacity, will also be levied 40 percent in 2020, 45 percent in 2021, 50 percent in 2022, 55 percent in 2023, and a yearly 10-percent rise from 2024 onward,” it added.
For sparkling wines or champagne worth P500 or less, the excise tax per liter of volume capacity will be P334.59 in 2020, P368.04 in 2021, P404.85 in 2022 and P445.33 in 2023, while sparkling wines and champagne that cost more than P500 will be worth P936.82 in 2020, P1,030.50 in 2021, P1,133.55 in 2022 and P1,246.91 in 2023.
The report said the higher excise taxes on alcohol products is part of the proposed tax reform package “2 Plus.”