Alcohol, tobacco excise taxes breach govt targets

Taxes imposed on liquor, tobacco, and petroleum products slightly breached government targets for the first six months this year, the Department of Finance (DOF) said on Thursday.

The government was able to collect P29.448 billion in excise taxes, almost five per cent higher than revenue targets of P28.088 billion during the period.

Excise taxes from alcohol rose by 1.64 per cent to P10.229 billion, exceeding collection expectations of P10.064 billion.

Despite the increase, the collection was P47.452 million lower than last year’s P10.276 billion.

Meanwhile, excise taxes on tobacco products failed to meet revenue goals for the period.

Instead of P12.084 billion, tobacco tax collection for the period was 15.4 per cent lower to P10.222 billion. The same figure is also sharply lower than last year’s total take of P13.502 billion.

Similarly, excise taxes on petroleum products were also unable to meet revenue targets.

The government was only unable to meet its P4.471 billion goal as collections plunged by 64 per cent. Last year, excise taxes on petroleum products reached P4.700 billion.

Mining and mineral product excise taxes likewise rode the trend.

The total take from this category declined 31 percent to P242.532 million. As a result, the government was unable to meet excise mineral tax goals of P489.273 million.

Miscellaneous product excise taxes also slid 31 percent year-on-year, hitting only P923.197 million from last year’s P1.090 billion.

The new Senate leadership had made a promise that there will be no new taxes, said Senator Juan Miguel Zubiri.

However, the tobacco excise inspection fee went beyond its forecast of P3.123 million. The government was able to collect a total of P486.361 million from the said tax, the DOF said.

GMANews.TV

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