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| English: A few bottles of Koval distilled spirits, from Koval Distillery in Chicago, Illinois, USA. (Photo credit: Wikipedia) |
Members of the Senate and House of Representatives to the bicameral conference committee on Tuesday morning signed the sin tax reform measure that aims to bring more government revenues estimated at P 33.96-billion in 2013.
Sen. Franklin Drilon, acting chairman of the Senate ways and means committee chairman, said the total incremental revenue for the first year of implementation of the tax measure would be P23.4 billion from tobacco products and P10.56 billion from alcohol or a total ofP33.96 billion.
As of press time, the House representatives of the bicameral committee who have signed the report were House majority leader Neptali Gonzales II and Representatives Henedina Abad, Jocelyn Limkaichong, Eric Singson, Luis Villafuerte, and Arnulfo Fuentebella.
The senators who have signed were Drilon, Sergio Osmena III, Panfilo Lacson, and Pia Cayetano.
Lawmakers agreed that for cigarettes packed by hand, the tax that will be imposed by January 1, 2013 will be P12/pack; P15/pack by 2014; P18/pack by 2015; P21/pack by 2016 and a unitary rate of P30/pack by 2017.
The four percent increase of the P30/pack rate will kick off by 2018, and every year thereafter.
For cigarettes packed by machine, there is a cut off for net retail price (NRP) for prices of P11.50 and below and those priced P11.50 and above.
For P 11.50 and below, the excise tax that will be imposed will be P12/pack effective Jan. 1, 2013; P17/pack by 2014; P21/pack by 2015; and P25/pack by 2016.
Effective January 1, 2017, there will be a unitary rate of P30 per pack, and the four percent increase will kick off on January 1, 2018.
For fermented liquors such as beers, the two-tier rate will be based on an NRP of P50.60 or less that will have a tax of P15/per liter; and P50.60 and above, P20/per liter in 2013.
By 2014, fermented products priced at P50.60 or less will be imposed with P17/liter; P19/liter in 2015; P21/liter in 2016. By 2017, all beer regardless of NRP will have a single rate of P 23.50 per liter.
For distilled spirits, a specific tax of P 20 per proof liter and P15 of NRP, per proof liter in ad valorem tax will be imposed effective January 1, 2013. By 1025, there will be a 20 percent increase of NRP per proof liter, depending on the bottle. By 2017, ad valorem taxes for distilled liquor will increase as the NRP increases.
http://philstar.com/headlines/2012/12/11/884842/senators-congressmen-sign-new-sin-tax-measure
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