Sin Taxes Spike in Philippines
February 3, 2016 Taxation in Philippines
MANILA – The healthcare system in the Philippines will soon see a boost in funding, as a sudden spike in the collection of taxes from the sale of cigarettes and alcohol will divert more funds to hospitals.
New data released by the Bureau of Internal Revenue of the Philippines shows that over the 2015 calendar year the level of revenues from the collection of Sin Tax in the country has risen by approximately 25 percent compared to the level seen over the course of 2014.
Over the course of 2015 the total amount collected from the excise tax imposed on the sale of alcohols and cigarettes reached a level of PHP 141.84 billion, while over the previous year the level only reached PHP 112.81 billion.
The overall rise in the collection of revenues has been attributed to a 32 percent increase in the collections of revenues from the sale of cigarettes, a fermented alcohols led to a 14 percent rise, while distilled and compound spirits saw a 7 percent increase, and wines rose by 25 percent.
In total, the sale of cigarettes resulted in the collection of PHP 100.02 billion, while taxes from wines, spirits and fermented alcohols totaled PHP 500 million, PHP 13.51 billion, and PHP 28.6 billion.
The sudden in collections will result in a significant boost in funding for healthcare, as current legislation requires that approximately 85 percent of the funds collected from sin taxes be allocated directly to the healthcare sector.
Photo By: THOR