- August 23, 2018
- Posted by: Atty. James Biron
- Categories: Legal News, Tax
Manufacturers and consumers of alcoholic drinks should prepare by 2020. Higher excise tax rates of sin products in the country will further cut down consumption given the government’s intention to collect more revenue.
Department of Finance showed from the updated proposal that it wanted an ad valoremtax of 25% on distilled spirits starting 2020. A specific tax of 40% per proof liter in 2020, 45% in 2021, 50% in 2022, 55% in 2023 and a yearly 10% increase starting 2024. Fermented liquors per liter of volume capacity will also be levied 40% in 2020, 45% in 2021, 50% in 2023 and a yearly 10% rise from 2024 onward.
As for Php500 or cheaper sparkling wines or champagne, the excise tax per liter of volume capacity will be Php334.59 in 2020, Php368.04 in 2021, Php 404.85 in 2022 and Php445.33 in 2023. And those which cost more than Php500 will be slapped Php936.82 in 2020, Php1,030.50 in 2021, Php1,133.55 in 2022 and Php1,246.91 in 2023.
Still wines and carbonated wines with 14% alcohol or less will have excise taxes per liter of volume capacity of Php40.15 in 2020, Php44.17 in 2021, Php48.59 in 2022 and Php53.45 in 2023. And those with over 14% proof but not more than 25%, the rates will apply: Php80.31 in 2020, Php88.34 in 2021, Php97.17 in 2022 and Php106.89 in 2023.
Still as well as carbonated wines with more than 25% alcohol will be taxed the same as distilled spirits and a 10% increase for all wines starting 2014. This higher taxes on alcohol is part of the proposed tax reform package “2 Plus.”
Tax package “2 Plus” also calls for higher taxes on sin products imposition of royalty on all mining operations and amendment to the Tax Incentives Management and Transparency Act to cover all agencies granting tax exemptions.
Image source: SanMiguelBrewery
