INQUIRER.net
5:35 pm | Wednesday, January 1st, 2014
MANILA, Philippines – Prices of tobacco and alcohol products went up on January 1 as the second increase of prices took effect in accordance with the Sin Tax Law.
Beginning January 1, 2014, the tax for cigarette packs priced at P11.50 and below will now be P17 a pack.
Cigarettes that are priced more than P11.50 per pack will be taxed P27. An increase of P2 from last year’s P25.
For fermented liquor, those that are sold at less than P50.60 per liter will be taxed P17, an increase of P2 from last year’s P15.
Liquor products priced more than P50.60 per liter will be taxed P21, an increase of P1 from 2013′s P20.
For distilled spirits, however, the tax remains at P20 plus 15 percent of the retail price per proof. By 2015, it will increase to P20 plus 20 percent of retail price.
The tax on tobacco products and fermented liquor on both upper and lower price ranges shall continue to rise at their respective rates until 2017 when tobacco products are taxed P30 and fermented liquor P23.50.
Republic Act 10351 or the Sin Tax Law mandates that a portion of the revenues collected from sin taxes will be allocated to projects that will benefit tobacco farmers and workers nationwide.
A portion of the revenues will also go to health care and improvement of medical facilities nationwide.
The Sin Tax Law was passed by Congress on December 11, 2012 and signed by President Benigno Aquino III on December 19.
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