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Duterte signs "sin" tax law but vetoes curbs on BIR search power | Samuel P. Medenilla @ 2020-01-24T20: Back Hot News
Keyword:sin tax new sin tax law Duterte signs law taxes on alcohol
Concept:
PRESIDENT DUTERTE HAS SIGNED THE NEW SIN TAX REFORM LAW BUT VETOED A PROVISION THAT PREVENTS THE GOVERNMENT FROM CONDUCTING A RAID ON ALCOHOL AND TOBACCO FACILITIES WITHOUT A COURT ORDER.
IN HIS MESSAGE TO SENATE PRESIDENT VICENTE SOTTO III AND HOUSE SPEAKER ALAN PETER CAYETANO, DUTERTE COMMENDED THE LAWMAKERS FOR PASSING THE NEW LAW WHICH AMENDS THE NATIONAL INTERNAL REVENUE CODE OF 1997 TO EFFECTIVELY IMPOSE HEAVIER LEVIES ON ALCOHOL, HEATED TOBACCO, AND VAPOR PRODUCTS.
「THE BUREAU OF INTERNAL REVENUE (BIR) WILL IMPLEMENT THE NEW LAW WITH NEW RATES ON ALCOHOL AND E-CIGARETTE EFFECTIVE JAN. 1, 2020, AS THE LAW CLEARLY SAYS JAN. 1 IS WHEN THE NEW RATES APPLY,」 DOMINGUEZ SAID, REFERRING TO REPUBLIC ACT NO. 11467 SIGNED BY PRESIDENT DUTERTE ON JAN. 22.
DUTERTE SIGNS LAW IMPOSING HIGHER TAXES ON ALCOHOL, E-CIGARETTES
ALCOHOLELECTRONIC CIGARETTESINCREASING TAXESLAWPRESIDENT RODRIGO DUTERTE
THIS NEW ‘SIN’ TAX MEASURE COMPRISES PACKAGE 2-PLUS OF THE COMPREHENSIVE TAX REFORM PROGRAM (CTRP), WHICH SEEKS TO MAKE PHILIPPINE TAXATION FAIR AND TRANSPARENT EVEN AS IT PROVIDES A STEADY REVENUE STREAM FOR THE GOVERNMENT.
FINANCE SECRETARY CARLOS DOMINGUEZ III ON THURSDAY SAID A NEW SIN TAX LAW AS WELL AS THE CORPORATE INCOME TAX AND INCENTIVES RATIONALIZATION ACT (CITIRA), ALONG WITH THE REST OF THE REMAINING INSTALLMENTS OF THE COMPREHENSIVE TAX REFORM PACKAGE (CTRP), WERE INDISPENSABLE ELEMENTS IN BANKROLLING PRIORITY PROGRAMS SUCH AS INFRASTRUCTURE MODERNIZATION AND UHC.
IN THE CASE OF CIGARETTES, THE TOBACCO TAX LAW OF 2019 WILL RAISE 「SIN」 TAXES TO P45 PER PACK IN 2020; P50 IN 2021; P55 IN 2022; AND P60 IN 2023, TO BE FOLLOWED BY 5-PERCENT ANNUAL INDEXATION FROM 2024 ONWARD.
UNDER THE NEWLY SIGNED LAW, TAXES ON DISTILLED SPIRITS SHALL INCREASE TO P42 PER PROOF LITER THIS YEAR AND WILL INCREASE BY 6% EVERY YEAR STARTING 2025. THERE WILL ALSO BE AN AD VALOREM TAX IMPOSED ON THE PRODUCTS WHICH IS 22% OF THE ALCOHOL PRICES.
STILL, THE BUSINESS SECTOR ANTICIPATES A NUMBER OF ECONOMIC MILESTONES IN THE COMING YEAR, INCLUDING THE PROJECTED PASSAGE OF THE CORPORATE INCOME TAX AND INCENTIVES RATIONALIZATION ACT OR CITIRA, WHICH SEEKS TO LOWER CORPORATE INCOME TAX FROM 30 PERCENT TO 20 PERCENT AND AT THE SAME TIME RATIONALIZE INVESTMENT INCENTIVES; THE DUTERTE ECONOMIC TEAM』S DRIVE TO GET A GRADE-A INVESTMENT RATING FROM INTERNATIONAL DEBT WATCHERS SUCH AS MOODY』S; AND STEPPED-UP EFFORTS TO HELP MODERNIZE FARMING AND BUTTRESS THE AGRICULTURE SECTOR.

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