MANILA, Philippines – The Bureau of Internal Revenue (BIR) is on track to hit or even exceed its sin tax collection target of P60 billion this year, according to its top official.
“We’re confident that we will reach the target. We think we can even surpass it,” said Internal Revenue commissioner Kim Henares.
Excise tax collections from sin products grew 46 percent to P38.54 billion as of end-June. The bigger share of P22.38 billion came from excise tax revenues from tobacco products.
Excise tax collections from alcohol amounted to P16.16 million, up 37 percent from P11.77 billion a year ago.
Henares said the BIR would have collected P9 billion more if volumes did not fall by 43 percent. Nevertheless, collections were still up 56 percent compared with the previous year.
The P12.15-billion increase in sin tax collections accounted for less than half of the expected P33.96 billion additional revenues that the government seeks to raise in the first year of implementation of the sin tax reform law.
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The decline in volume was due to frontloading at the latter part of 2012.
Of the total P33.96 billion in incremental six tax revenues expected this year, P22.9 billion would come from tobacco products while P11 billion would come from alcohol products.
Henares said the BIR would have collected P9 billion more if volumes did not fall 43 percent. Nevertheless, collections were still up 56 percent compared with the previous year.
The decline in volume was due to frontloading at the latter part of 2012.
The government expects tax revenues to rise 44 percent this year with the six tax measure, which took effect on Jan. 1.
For 2014, the government aims to collect P42.86 billion in incremental revenues. Collections are expected to increase further to P50.63 bilion in 2015 and P56.86 billion by 2016.
