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Cigarette prices up P5 a pack in 2014 as sin tax bites anew

December 30, 2013 2:07pm
Prices of cigarettes are expected to increase by at least P5 per pack as the second round of the sin tax law
is implemented starting January 1, 2014, according to the Bureau of Internal Revenue (BIR).
"Come January 1, 2014, magtataas na ang dalawang tier natin sa sigarilyo from P17 to P27... logically,
common sense dictates na... magtataas ng presyo five pesos minimum," BIR Commissioner Kim JacintoHenares said in an interview on GMA News' "Balitanghali" Monday.
Under the second round of the sin tax reform law, low-priced cigarette brands will carry a P17 excise tax
from P12 while high-priced brands will bear a P25 excise tax, the report noted.
For distilled spirits, low-priced alcohol products will be slapped with a P17 tax per liter and P21 per liter for
high-priced products, the report added.
President Benigno Aquino III signed into law Republic Act 10351 or the Sin Tax Reform Law on Dec. 20,
2012.
It took effect Jan. 1, 2013, which slapped cigarette packs selling at a net retail price of P11.50 with a P12
excise tax and those selling for over P11.50 a new rate of P25.
The rates will go up to a P30 unitary excise tax in 2017 and will have a 4 percent yearly increase thereafter.
Alcohol products, meanwhile, will have a tax of P20 plus 15 percent of net retail price per proof in 2013 and
2014, P20 plus 20 percent of net retail price per proof in 2015.
By 2016, the tax rate of P20 will increase by 4 percent a year plus the 20 percent net retail price per proof.
The BIR expects to collect P33 billion in additional revenues with the sin tax law in place. The money will
be used to pay for the Universal Health Care Program and to support tobacco farmers and the industry.
Danessa Rivera/VS, GMA News
Source: http://www.gmanetwork.com/news/story/341781/economy/finance/cigarette-prices-up-p5-a-packin-2014-as-sin-tax-bites-anew

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