Category Taxation in Philippines

Philippines Seeks Feedback on Tax Stamps

December 7, 2015 Taxation in Philippines

MANILA – Alcohol manufacturers in the Philippines will soon need to affix bottles of spirits with tax stamps, but they are being offered an opportunity to comment on how such a requirement should work.

Over the weekend the Commissioner of the Philippines Bureau of Internal Revenue (BIR) Kim Jacinto-Hanares said that the tax authority will soon begin talks with alcohol manufacturers to establish new working procedures for a tax stamp system.

The government had previously planned to ensure that by the end of 2015 local manufacturers of spirits affix tax stamps during the manufacturing process in order to help fight smuggling and ensure that the national sin tax system proves effective.

However, the requirement for the tax stamps was delayed due opposition from the industry.

The BIR now hop...

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Sin Taxes Proven Effective in Philippines

June 16, 2015 Taxation in Philippines

MANILA – The collection of sin taxes in the Philippines have more than doubled since 2012, while the number of cigarettes smoked in the same time frame dropped by a third.

On June 15th the Bureau of Internal Revenue of the Philippines announced that the concentrated efforts to reduce smoking in the country have had a significant positive effect, due, in part, to sin taxes.

Over the years between the start of 2012 and the end of 2014 the number of cigarette packets put up for sale by retailers in the country fell by approximately one third.

In 2012 an estimated 5.764 billion packets of cigarettes were put up for sale, while in 2013 the amount fell to 4.869 billion, and in 2014 the level became 3.917 million.

The sin taxes levied upon the sale of cigarettes led to the collection of PHP 32...

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Philippines Should Enact Soda Tax

June 12, 2015 Taxation in Philippines

MANILLA – The Philippines should proceed with enacting a tax on the sale of unhealthy beverages, according to the IMF.

On June 10th the representative of International Monetary Fund to the Philippines Shanaka Peiris revealed that the IMF supports the government’s proposal to raise the taxes applied to the sale of soft drinks and other sugar sweetened beverages.

The tax, which was originally proposed by the Department of Health, would be levied at 10 percent on the sale of carbonated sweetened beverages sold in bottles or other sealed containers.
It is estimated that such a tax could raise as much as PHP 10.5 billion in extra tax revenues per year.

Shanaka Peiris claimed that the tax would be a “…good government measure for better outcomes and also more revenues.”

He also added that...

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Philippines Considers Soda Tax

January 19, 2015 Taxation in Philippines

MANILA – Taxing soft drinks in the Philippines may help improve health in the country, especially among youths.

In a new position paper issued recently the Department of Health of the Philippines stated its opinion that a new tax should be implemented on the sale of all sugar-sweetened drinks sold in in the country.

According to the experts of the Department of Health, approximately 29.1 percent of men in the country suffered from hypertension, and 4 percent were diabetic, while 22.2 percent of women were hypertensive, and 5.5 percent were diabetic.

The unhealthy condition of such a significant portion of the population is caused by smoking, physical inactivity, excessive alcohol consumption, and poor diets.

Implementing a 10 percent tax on unhealthy beverages such as soft drinks, sweet...

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Caution Urged on Tax Reform in Philippines

September 4, 2014 Taxation in Philippines

Tax Reform in PhilippinesMANILA – While it is agreed that taxes in the Philippines are growing too fast, caution has been urged on implementing any tax cuts, as the reduction may cause significant revenue drops.

On September 3rd the undersecretary of the Department of Finance of the Philippines Jeremias Paul urged the members of the national House Ways and Means committee to re-examine and take a holistic approach to any tax reforms to be enacted in the country, claiming that the currently proposed round of income tax rate reductions may significantly reduce the country’s GDP.

Jeremias Paul claimed that if income tax rates were reduced, as is currently proposed, the loss in revenues would amount to between 0.3 percent and 1.5 percent of the national level of GDP.

The undersecretary’s comment come only days afte...

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