‘Sin’ taxes up

Under Republic Act 11467 enacted last January, excise taxes on tobacco and alcohol products will increase every year until 2023, after which levies will automatically rise 5% each year. The measure aims to deter smoking and drinking habits, while raising revenues for President Rodrigo Duterte’s flagship healthcare-for-all program.

For 2021, distilled spirits will be slapped a 47 peso tax per proof liter, up from the current 42 pesos. The charge will come on top of a 22% ad valorem tax of the net retail price of these products. Meanwhile, excise on fermented liquors will likewise go up to 37 pesos per liter from 35 pesos.

Heated tobacco products will be charged a 27.50 levy per pack containing 20 units, up from the present 25 pesos. Vapor products, which have become a fad alternative to cigarettes, will also be taxed 42 to 50 pesos, depending on nicotine content.

Source: https://www.philstar.com/business/2020/12/23/2065847/economy-will-rise-next-year-taxes-charges-and-salaries-too

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