Sin tax collections reach P141.84B in 2015

The government registered a double-digit rise in tax collections from "sin products" last year, exceeding the P119.08 billion target, data released by the Bureau of Internal Revenue (BIR) on Tuesday showed.

The excise tax on tobacco and alcohol products amounted to P141.84 billion for the full-year 2015, topping by P22.76 billion or 19.11 percent the P119.08 billion target.

This year, the government aims to top the 2015 collections by as much as P8.54 billion.

"Sin Products Revenue target for 2016 – P150.38 billion," BIR Commissioner Kim Jacinto-Henares said in a text message to GMA News Online.

The tax on sin products in 2015 was P29.03 billion or 25 percent higher than the P112.81 billion collected in 2014.

The bulk came from tobacco products, which accounted for P100.02 billion, followed by fermented liquors at P28.26 billion, distilled spirits or compounded liquors at P13.51 billion, and wines at P0.05 billion.

Lesson in good governance

"With the figures in for its third year of implementation, Sin Tax Reform is a lesson in good governance: sound policy and tough enforcement going hand in hand to deliver results for the uncovered and most vulnerable," Finance Secretary Cesar V. Purisima said in an emailed statement.

"Sin tax collections growing by a full quarter on year is no small feat. I expect Commissioner Henares and the BIR continue to expand the fiscal space we need to invest more heavily in universal healthcare," Purisima said.

The Sin Tax Reform Bill was signed into law by President Benigno Aquino III in December 2012. It sought to increase the excise taxes on alcohol and tobacco products and boost the budget for healthcare and dissuade the youth from smoking and drinking.

“[Ang mga] Pilipino ay makikinabang sa mga bagong klinika at ospital na mapopondohan at maipapatayo; mga Pilipinong maililihis sa bisyo ng paninigarilyo at labis na pag-inom. Batas na po ang ipinaglaban nating Sin Tax Reform Act,” he said then.

The law was initially expected to generate P33.96 billion in additional revenue and has been labeled by the Aquino administration as a health measure. – VS, GMA News