Cigarette excise tax collections increased eight percent to 148 billion pesos in 2019 on the back of higher rates slapped under the Tax Reform for Acceleration and Inclusion Act.
The latest Department of Finance data showed that the taxes paid by cigarette firms last year increased from 137 billion pesos in 2018, the TRAIN Law’s first year of implementation.
Cigarette excise taxes cornered 55 percent of the total “sin” tax collections of 269 billion pesos in 2019. “Sin” products also included alcoholic drinks and sugar-sweetened beverages.
For cigarettes, e-cigarettes and alcohol, another round of excise tax increases took effect last January 1. From cigarettes alone, additional excise tax collections worth 15 billion pesos are expected in 2020.
Meanwhile, the higher levy on alcohol, heated tobacco, and vapes are expected to raise an additional 22 billion pesos this year.