BIR collects P6 billion from excise taxes on sweetened beverages

The government collected a total of P6-billion excise taxes on sugar-sweetened drinks from January to March this year, according to a report by the Bureau of Internal Revenue (BIR).

The P6 billion in additional taxes from the first quarter was a result of the imposition of excise taxes on sugar-laden beverages, Internal Revenue Commissioner Caesar Dulay said during an interview.

Dulay also noted that the additional revenue collected from sweetened beverages resulted in a significant contribution to the first quarter collection of the BIR, which rose by 16.81 percent. From P361.77 billion last year, the revenue jumped to P422.59 billion this year.

The imposition of excise taxes on sugar-sweetened beverages is part of the TRAIN law, and has been lauded by the World Health Organization. It is the first time the government implemented such a rule. Under this provision, beverages with caloric sweeteners and non-caloric sweeteners will be taxed P6 per liter of volume capacity. Meanwhile, drinks containing high-fructose corn syrup will be subject to a tax rate of P12 per liter.

Nevertheless, Internal Revenue Commissioner Marissa Cabreros noted that the BIR revenue regulation (RR) on sugar-sweetened beverages is still being reviewed by the Department of Finance. The RR contains the implementing rules and regulations for the excise tax on sugary drinks.

In the meantime, the BIR released excise tax form 2200-S/0605 for companies that will declare their excise tax contributions, Cabresos said.

via The Philippine Star / Mary Grace Padin