Connect with us

Hi, what are you looking for?

Economy

‘Sin’ tax collection exceeds revised target in October

Taxes collected from so-called “sin” products, such as cigarettes and alcoholic beverages, fell amid weak demand due to the pandemic. — REUTERS

By Beatrice M. Laforga,  Reporter

TAXES COLLECTED from so-called “sin” products in October surpassed the target for the month, due to a pick up in sales of tobacco and alcoholic drinks, data from the Department of Finance (DoF) showed.

Data obtained by BusinessWorld showed the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) collected P23.238 billion in “sin” taxes in October, beating the reduced P20.52-billion target by 13.2%.

This was also nine percent higher than the P21.332 billion generated in the same month last year, but 20% less than the P29.2 billion collected in September.

Broken down, excise tax collections from tobacco products hit P14.11 billion in October, up 34.3% year on year and higher by 12.4% than its P12.44-billion target. Taxes from alcoholic beverages, meanwhile, fell 3.5% to P6.967 billion from P7.22 billion the year prior, but have exceeded the P5.53-billion goal by 26%

State revenues from sweetened beverages stood at P2.166 billion, plunging 40% year on year and 15% short of the P2.55-billion target for the month.

Projected tax collections for the year have been slashed on expectations of weak public consumption amid a recession caused by the coronavirus pandemic.

The targets were based on the assumptions of the economic managers during their meeting in July where they slashed the estimated overall revenues to P2.52 trillion. The latest estimates have been increased to P2.85 trillion during a meeting last week after the BIR and BoC consistently surpassed their targets since July.

In the first 10 months of the year, “sin” tax collections reached P212.94 billion, exceeding the target by 16.88%, but still down by 6.7% from the P228.22 billion recorded in the comparable period in 2019.

Tobacco collections fell by three percent from a year ago to P129.02 billion, but were still 16.8% higher than the P110.42-billion goal. Taxes from alcohol products also declined by 8% from its year-ago level to P57. 37 billion, but the tally  exceeded the target of P49.11 billion by 16.8%.

Taxes from sweetened beverages were down by 18.7% to P26.56 billion in the 10-month period. The amount beat the target of P22.65 billion by 17%.

Recently passed laws raised the excise taxes slapped on alcoholic beverages and tobacco products. A huge part of “sin” tax collections will be used to fund the government’s Universal Health Care Program.

The BIR raked in P152 billion in taxes in October while the BoC generated P50.6 billion, down by 15% and 12% from their respective year-ago levels but higher than their targets for that month.

From January to October, the BIR’s revenues dropped 10.4% to P1.596 trillion while Customs revenues were also down 15% to P448.6 billion.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Another Olympic gold medal for the Philippines is within reach after featherweight boxer Nesthy A. Petecio secured a spot in the finals at the...

Economy

Filipino flyweight boxer Carlo Paalam advanced to the quarterfinals of the flyweight division in the Tokyo Olympic Games after he defeated Mohamed Flissi of...

Economy

Filipino pole vaulter Ernest John Obiena advanced to the final round of the men’s event in the Tokyo Olympic Games after finishing among the...

Economy

Manila and nearby cities would go back to the strictest lockdown level from Aug. 6 to 20 amid a fresh surge in coronavirus infections...

Economy

The Philippine central bank will keep a supportive monetary policy amid a slower-than-anticipated economic recovery, its governor said on Friday.  “High-frequency indicators suggest that...

Economy

The Philippine central bank raised P100 billion on Friday as it fully awarded its short-term securities, with yields rising due to concerns about a...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!