The House of Representatives has ratified the bicameral conference committee report on a bill seeking to raise the excise tax rates on alcohol products as well as heated tobacco and vapor products in the country.
The proposal seeks to amend the Republic Act No. 8424 or the “National Internal Revenue Code of 1997.” This is part of the Package 2+ of the Comprehensive Tax Reform Program.
Once ratified by both Houses, the bill will be sent to Malacañang for President Rodrigo Duterte’s signature.
Once ratified by both Houses, the bill will be sent to Malacañang for the signature of President Rodrigo Duterte.
The reconciled version proposes that distilled spirits shall have an ad valorem rate of 22 percent of the retail price, as well as an additional specific tax of P42 per proof liter in 2020, P47 (2021), P52 (2022), P59 (2023), and P66 (2024). The specific tax shall be increased by 6 percent every year thereafter.
Meanwhile, still wines and sparkling wines shall have an excise tax of P50 and shall eventually be raised by 6 percent every year thereafter.
Fermented liquors shall be taxed with P35 per liter in 2020, P37 (2021), P39 (2022), P41 (2023), and P43 (2024). Also, the rates of tax imposed shall be increased by 7 percent every year afterward.
The measure stipulates that heated tobacco products shall be levied with an excise tax rate of P25 per pack in 2020, P27.50 (2021), P30 (2022),and P32.50 (2023). The tax imposed shall increase by 5 percent each year after that.
While for vapor products, salt nicotine shall have an excise tax of P37 per milliliter in 2020, with an incremental increase of P5thereafter until 2023. It shall be enlarged by 5 percent every year effective in 2024.
60% of the revenue shall be earmarked for the implementation of the Universal Health Care Law.
Revenues from these proposed taxes shall be earmarked as follows: 60 percent for the implementation of the Universal Health Care Law, 20 percent to the Health Facilities Enhancement Program, and 20 percent for the attainment of the sustainable development goals.