Tax & Revenue

Excise Tax Hike on Alcohol, Tobacco Bills certified as urgent

Date: 09 January 2019; Type: Legal News; Source: Philippine News Agency

MANILA, Jan 9 (PNA) - President Rodrigo R. Duterte agreed to certify as urgent two measures meant to raise excise tax on alcohol and tobacco products to fund the government’s Universal Health Care (UHC) program.

Presidential Spokesperson Salvador Panelo said the President announced his decision during Monday’s 33rd Cabinet meeting in Malacañang.

Panelo was referring to Senator Manny Pacquiao’s Senate Bill No. 1599, which sought to further increase the excise tax on tobacco products.

Under the measure, the current cigarette tax rate of PHP30 per pack will increase to PHP60 per pack. This is aside from the annual increase of 9 percent from the current 4 percent increase in excise tax per year.

Pacquio’s measure was backed by the departments of Finance and Health.

“The recommendation of the Department of Finance (and Health) is that this bill should be certified as urgent because under the proposal, the tax on tobacco would be raised to 60 per pack while on the part of alcohol, it will be 40 per liter,” Panelo said.  

“So the recommendation is that that bill should be passed and signed into law. That was what was approved last night,” he added.

Panelo said if the measure passes into law then that will automatically amend what is stated in the Tax Reform for Acceleration and Inclusion (TRAIN) law.

“This is a key public health measure to reduce deaths and disabilities due to tobacco and alcohol consumption and, at the same time, a revenue measure to fund the universal health care program,” Panelo said.

In December last year, Finance Secretary Carlos Dominguez III pushed for the increase in the current tobacco excise tax rates to levels that would effectively curb smoking and also help supplement funds for the UHC program.

In the same month, the House of Representatives approved House Bills 8677 and 8618, which increase the tax on cigarettes and alcoholic drinks, respectively.

HB 8677 seeks to increase excise tax rates for tobacco by PHP2.50 every year, starting July 2019 until 2022.

Under the measure, cigarette excise tax rate will be raised to PHP37.50 per pack by July 2019, PHP40 for 2020, PHP42.50 for 2021, and PHP45 for 2022. The rate would be raised 4 percent every July annually, starting 2023.

Meanwhile, HB 8618 aims to to raise excise taxes on distilled spirits, wines, and fermented liquors.

Under the measure, the current 20 percent ad valorem tax imposed on distilled spirits shall be increased to 22 percent, while specific tax rates per proof liter of PHP30, PHP35, PHP40, PHP45 shall be imposed from 2019 to 2022. The specific tax rate shall be increased by 7 percent annually, starting 2023.

In November last year, the Bicameral Conference Committee approved the consolidated version of the UHC bill which aims to give all-inclusive health coverage for Filipinos.

Duterte endorsed UHC bill as among his priority measures during his State of the Nation Address on July 23, 2018.

Notice: The Publishers of Asean LIP acknowledge the permission granted by the relevant official/ original source for the reproduction of the above/ attached materials. You shall not reproduce the above/ attached materials in whole or in part without the prior written consent of the Publishers and/or the original/ official source. Neither the Publishers nor the official/ original source will be liable for any loss, injury, claim, liability, or damage caused directly, indirectly or incidentally to errors in or omissions from the above/ attached materials. The Publishers and the official/ original source also disclaim and exclude all liabilities in respect of anything done or omitted to be done in reliance upon the whole or any part of the above/attached materials. The access to, and the use of, Asean LIP and contents herein are subject to the Terms of Use.

Get ASEAN LAW ALERT

Legal updates by e-mail. It's Free.

INDUSTRY UPDATES

DOJ forms Special Team to probe Kidapawan Broadcaster's Slay

MANILA, Jul 12 (PNA) - Department of Justice (DOJ) Secretary Menardo Guevarra on Friday said he has ordered a special investigation team to look into the killing last Wednesday of radio commentator Eduardo Dizon who was gunned down on the way home in Kidapawan City, Cotabato.

Read More

INDUSTRY UPDATES

New BSP Deputy Governor sworn in

MANILA, Jul 12 (PNA) - Francisco G. Dakila Jr. received his oath of office as Deputy Governor for Monetary and Economics Sector (MES) in ceremonies administered by Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno on Thursday.

Read More

INDUSTRY UPDATES

Chief Justice heads Penang Honours List

GEORGE TOWN, Jul 12 (Bernama) - Chief Justice Datuk Tengku Maimun Tuan Mat heads the list of 877 recipients of state honours and honorary medals in conjunction with the 81st birthday of the Yang Dipertua Negeri of Penang Tun Abdul Rahman Abbas.

Read More

INDUSTRY UPDATES

Prosecution failed to serve Summons on Shahrizat's Children, Court sets new Mention Date

KUALA LUMPUR, Jul 12 (Bernama) - The Sessions Court here today set Aug 5 for mention of a lawsuit filed by the Companies Commission of Malaysia (CCM) against two children of former Women, Family and Community Development Minister Tan Sri Shahrizat Abdul Jalil in connection with several offences allegedly committed by their company.

Read More

INDUSTRY UPDATES

Free Legal Service to be provided for the Poor

Legal aid groups will provide free legal services to poor people and those in need of legal assistance across the country in an effort to support the rule of law and restore public trust in the judiciary.

Read More

INDUSTRY UPDATES

Bill to increase Sabah State Seats to be tabled on July 17

KOTA KINABALU, Jul 11 (Bernama) - Sabah Chief Minister Datuk Seri Mohd Shafie Apdal is confident the Bill for the additional 13 seats, to increase the number of state seats from 60 to 73, will be approved when it is tabled in Parliament on July 17.

Read More

INDUSTRY UPDATES

SolGen asks SC to dismiss Writ of Kalikasan Suit on WPS

MANILA, Jul 9 (PNA) - Solicitor General Jose Calida on Tuesday asked the Supreme Court (SC) to dismiss the petition filed against government agencies, which seeks unspecified action on the disputed areas in the West Philippine Sea.

Read More

INDUSTRY UPDATES

IRB records 486,360 Cases of Voluntary Tax Declaration

KUALA LUMPUR, Jul 8 (Bernama) - The Inland Revenue Board of Malaysia (IRB) has recorded 486,360 cases of voluntary tax declaration under the special voluntary declaration programme (PKPS) as of June 23.

Read More

INDUSTRY UPDATES

Sugar Tax: SME Traders can file Postponement Appeal

PARIT BUNTAR, Jul 7 (Bernama) - Small and Medium Enterprise (SME) traders affected by the sugar tax on sweetened drinks which came into effect this month, can file a postponement appeal to the relevant authorities.

Read More

INDUSTRY UPDATES

Sarawak Government has not Officially responded on the RM1 Loan Offer - MOF

KUALA LUMPUR, Jul 6 (Bernama) - The Sarawak state government has yet to provide any official feedback to the Federal government on the proposed loan offer, amounting to RM1 billion, which will be allocated for repairs of dilapidated schools in the state.

Read More

INDUSTRY UPDATES

Government offers Tax Incentives, grants to boost Participation in Expo 2020 Dubai

PUTRAJAYA, Jul 5 (Bernama) - The government has approved tax incentives and grants to encourage potential participating and contributing companies in the upcoming Expo 2020 Dubai.

Read More

INDUSTRY UPDATES

PCC approves New Clark City Power Distribution Deal

MANILA, Jul 3 (PNA) - The Philippine Competition Commission (PCC) has approved the proposed joint venture between the Bases Conversion and Development Authority (BCDA) and the consortium of Manila Electric Company (Meralco) and its Japanese partners to develop a power distribution system in New Clark City.

Read More

INDUSTRY UPDATES

Airbnb wants clearer Guideline on Tourism Tax

KUALA LUMPUR, Jul 2 (Bernama) -- Online hospitality service brokerage company, Airbnb Inc urged the government to provide a clearer guideline on tourism tax for its type of business.

Read More

INDUSTRY UPDATES

Malcontento to take oath as New Prosecutor General on July 2

MANILA, Jul 1 (PNA) - Justice Secretary Menardo Guevarra said newly appointed Prosecutor General Benedicto Malcontento may assume office as soon as he takes his oath Tuesday.

Read More

INDUSTRY UPDATES

Go Online to partner with 8 Million MSMEs

Jakarta, Jul 1 (ANTARA) - The Communications and Information Ministry is targeting eight million micro, small and medium enterprises (MSMEs) to be partners of the Go Online program. Involving MSMEs and marketplace in the country, Go Online is a collaborative program between the government, MSMEs, and online shopping platforms to level digital market access and build a digital economy in Indonesia.

Read More