Sin Taxes Collection Up by 42%
December 19, 2014 Taxation in China
MANILA – The collection of sin taxes in the Philippines has seen a significant rise, indicating that an increase in the rate of sin taxes has not led to a rise in smuggling.
On December 18th the Department of Finance of Philippines issued new information on the collection of sin tax in the country, showing that the collection of revenues has increased significantly over the first nine months of the year.
In the nine months between January and September sin taxes resulted in tax revenues of PHP 91.64 billion, up from a level of PHP 65.54 billion during the same timeframe in the previous year, an increase of 42 percent.
The revenues collected are 90 percent higher than the government’s target for the period of PHP 34.16 billion.
The Commissioner of the Bureau of Internal Revenue claimed that the rise in revenue collection is a result of the recent hikes in the rates of sin taxes, and an extra effort to ensure compliance, and, further, the positive results provide evidence to counter the claim that the hike in taxes resulted in a rise in smuggling.
Photo By: Partha S. Sahana