Tax Stamps Coming to Alcohol in Philippines

July 13, 2017 Taxation in Philippines

Taxes on alcoholMANILLA – The Philippines will try to crack down on untaxed alcohol by extending the tax stamp system to such drinks, and not just to tobacco.

Finance Secretary Carlos G. Dominguez III of the Philippines has stated that from next year the government will require that tax stamps be affixed to alcohol, in order to better track whether appropriate levels of excise tax are being paid on alcohol.

The tax stamp system was raised approximately 5 years ago, as part of the government’s sin tax reform, which saw greater levels of taxation being levied on goods and products deemed to be harmful.

So far the tax reform has been concentrated on the application of tax stamps to cigarettes and tobacco, and the struggle to minimise the illicit use of fake tax stamps on these products.
However, some politicians have become outspoken critics of the government’s inaction in applying the same standards to alcoholic drinks.

Some of the delays in implementing tax stamps on alcohol has been attributed to the lack of concrete pricing details for the measures, as the state-operated printer has not yet provided such details.

It was also stated that in October this year the government will issue redesigned tax stamps, in an effort to minimise the negative impact of the fake tax stamps which have spread recently.