Category Taxation in Philippines

8 Million Smokers Quit After Tax Hike in Philippines

December 5, 2016 Taxation in Philippines

Taxes on Cigarettes in PhilippinesMANILA – Tax hikes on cigarettes have forced my Filipinos to quit, but it now seems manufacturers may be trying to flood the market before another round of tax hikes hits.

In a recent interview the president of the Philippine Society of General Internal Medicine Antonio Miguel Dans reportedly claimed that as many as 8 million locals have quit smoking due to the effect of tax hikes on the sale of tobacco.

The latest round of tax hikes on the sale of tobacco occurred in 2012, and were aimed specifically at reducing consumption of tobacco in the country.

In 2012 the estimated smoking rate in the country was approximately 31 percent, while it has now dropped to 23 percent, a drop equivalent to approximately 8 million people.

The supply of cigarettes in the Philippines between 2012 and 2015 ...

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New Tax Thresholds Called for in Philippines

September 19, 2016 Taxation in Philippines

Tax Reform in PhilippinesMANILLA – Calls are being raised in the Philippines for a drastic overhaul of the tax system to significantly reduce the tax burdens on low-income earners.

Over the weekend Miro Quimbo a Deputy Speaker of the Philippine House of Representatives said that he would push for tax exemptions for low-income earners.

Under current regulations only individuals earning the minimum-income are not required to pay any income taxes.

Miro Quimbo hopes to amend the current tax regulations to allow tax exemptions for the first PHP 300 000 of personal income.

It is estimated that there are currently 9.5 million taxpayers in the Philippines who earn less than PHP 300 000, and who would directly benefit from the proposed tax exemptions.

The Deputy Speaker explained that even though PHP 300 000 is not a sma...

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Philippines Eyes Hike on Oil Tax

July 18, 2016 Taxation in Philippines

MANILLA – Excise taxes on oil products in the Philippines could be raised to account for 2 decades of stagnant rates.

Over the weekend the Finance Secretary of the Philippines Carlos Dominguez III announced that the government may soon increase the rate of excise tax on fuel products.

The rate of excise tax on fuel and fuel products in the Philippines is currently set at up to PHP 4.50 per litre, a rate which was set and left un-adjusted since 1997.

Carlos Dominguez III explained that now is a perfect time to raise the rate of the excise tax, as the prices of oil and oil products around the world are at record lows.

It has been proposed that the rate of the tax be raised to approximately PHP 10 per litre for oil, oil products, and gasoline, while the rate of diesel be raised to PHP 6 per...

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Collection of Sin Tax Begins to Fall in Philippines

May 12, 2016 Taxation in Philippines

MANILA – Graphic health warnings on cigarettes packets in the Philippines have helped the reverse continued growth in the collection sin taxes.

New data released by the Bureau of Internal Revenue (BIR) of the Philippines on May 11th indicates that collection of taxes from the sale of alcohol and tobacco has increased over the course of this year, but the recent implementation of warning labels on cigarettes may put an end to the increases.

The collection of the “sin taxes” on the sale of tobacco and alcohol over the month of January to March rose by 22.78 percent, compared to the same period over the course of 2015.

The tax collections totalled PHP 26.62 billion, exceeding the goal of PHP 24.73 billion set for the period by the government.

However, despite the overall rise over the f...

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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 t...

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