Senate OKs bill on higher alcohol, e-cigarettes excise tax hike

first_img Senators also included a provision restricting the selling of vape products to those 21 years old and below. The measure will have vape products in the same tax rates as conventional tobacco products which will have a P45 per pack excise tax next year. For vape products, proposed rate is P45 per 10 milliliter and the rate is to increase by P5 per year until it reaches P60 in 2023. For sparkling wines, the measure seeks to impose a specific tax of P50 for 750 milliliter bottle with a NRP of P500 or more beginning next year. By 2021 onwards, the P50 rate will be increased annually by six percent. For still wines and carbonated wines, the same P50 specific tax rate will be imposed next year and it will have a six percent increase beginning 2021. With 20 senators voting in favor, the Body approved Senate Bill No. 1074, which is projected to yield an additional P20 billion to P24 billion yearly, on top of the more than P100 million being collected from taxes on so-called “sin products.” In the measure, P26 will be the specific tax for distilled spirits and alcopops in 2020 plus 50 percent of the net retail price (NRP). By 2021, the specific tax will be P30 plus 50 percent NRP. It will be adjusted to P33 plus 50 NRP in 2022; P37 and P41 plus NRP in 2023 and 2024 respectively. Those who will engage in illicit trade of HPTs and vape products will be slapped with higher penalties, which will be 10 times higher than what is provided in the existing laws or from P50,000 to P500,000 and imprisonment of two years to four years.center_img By 2024 onwards, the P60 tax rates will be increased annually by 5 percent under SB 1074. In the case of fermented liquor, a+ specific tax rate of P35 per liter will be imposed next year and it will have a yearly P2 per liter increase until it reaches P43 in 2024. By 2025 onwards, it will have an annual increase of six percent. The Senate version adopted the amendments made by Senate President Pro-Tempore Ralph Recto on the excise tax rates of heated tobacco products (HTPs), imposing P22.50 per pack next year, P25 in 2021, P27.50 in 2022 and P30 in 2023. Senators moved to scrap the proposed imposition of excise taxes on the tobacco heating systems and vapor products device as they viewed this difficult to implement administratively. MANILA – The Senate has approved on third and final reading a measure increasing the excise taxes on alcoholic drinks, heated tobacco products and vapor or electronic cigarettes. From 2024 onwards, the P30 excise tax rate for HTPs will have an annual increase of five percent. The approval came less than a month after President Duterte certified the immediate enactment of the measure, citing the urgent need to generate additional revenue to support the effective implementation of Republic Act No. 11223 or the Universal Health Care Act that he signed into law last Feb. 20./PNlast_img

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