MANILAThe House of Representatives ways and means committee on Tuesday formed a technical working group (TWG) to consolidate two measures seeking to increase the excise tax rates imposed on alcohol products.
The TWG will be tasked to merge House Bills 4839 and 8286, authored by AAMBIS-OWA Party-list Rep. Sharon Garin and Sultan Kudarat Rep. Horacio Suansing Jr., respectively.
The said bills aim to impose higher excise taxes on distilled spirits, wines, and fermented liquors.
Suansing's version proposes to increase the indexation rate to 10 percent to account for inflation and income.
The incremental revenues that will be generated will be used to fund social services and infrastructure programs of the government.
Meanwhile, under Garin's bill, the current 20 percent ad valorem tax imposed on distilled spirits shall be increased to 25 percent, while its specific tax rate shall be increased to PHP30 per proof liter.
The specific tax rate of PHP30 shall also be increased by 5 percent annually.
The bill also covers sparkling wines or champagnes, still wines and carbonated wines.
For sparkling wines, if the net retail price per 750 ml. bottle is less than PHP500, the excise tax will be at PHP300. Meanwhile, if the retail price exceeds PHP500, the product would carry an excise tax of PHP800.
Still wines and carbonated wines containing 14 percent of alcohol or less will be taxed PHP40, while those with 25 percent alcohol content or less will be taxed PHP70.
An annual increase of 5 percent shall be imposed for these wine products.
For fermented liquors, or beer products, the bill seeks to raise the excise tax to PHP28 per liter if the net retail price (excluding excise and value-added taxes) per liter of volume capacity is PHP50.60 or less. But if the net retail price is more than PHP50.60, the product shall be taxed PHP30.
A yearly increase of 4 percent shall be imposed on fermented liquors. (PNA)
Source: Philippine News Agency