Sin tax reform law pdf

Sin tax reform in the philippines sin tax reform in the philippines transforming public finance, health, and governance for more inclusive development kai kaiser, caryn bredenkamp, and roberto iglesias directions in development countries and regions. Sin tax law reversed the declining trend of tobacco. Once signed into law, sb 2233 will jack up the excise tax on cigarette packs from. How, when, where and from what person do we collect the tax. Sin tax, excise tax, philippines, alcohol, tobacco, cigarette, reform. Payroll managers start adjusting their systems to reflect the new withholding tax rates. The following year, the tax will rise by five percent annually. The congress has committed to pass the rest of the train s provisions representing the remaining onethird of the targeted revenues in early 2018 to help us achieve our revenue and deficit targets. Duterte signs law raising taxes on alcohol, ecigarettes. The newly passed sin tax reform bill increased taxes on all tobacco and alcohol projects, providing a new injection of funding that enabled the philippine government to enrol more people in universal health care and scaleup ncd prevention services in primary care. Do sin taxes encourage people to hide rather than report the sin, driving sin underground or out of the state. Manila, philippines president aquino signed yesterday the sin tax reform bill into law, paving the way for higher cigarette and liquor prices in the coming weeks. Presented in appendix a are the revised excise tax rates of alcohol and tobacco products under ra 10351.

About 80% of this increase is accounted for by tobacco. It is primarily a health measure with revenue implications, but more fundamentally, it is a good governance measure. Republic act 10351, or the sin tax reform law, is one of the landmark legislations under the aquino administration. Reform objectives and final features of the sin tax law. The amendment of the existing excise tax law on tobacco and alcoholic products is the only revenue measure. Duterte told lawmakers that he vetoed one provision in the sin tax bill, saying he had to remove a line that requires the bureau of internal revenue to secure a. Prior to the sin tax reform law, the cigarette tax scheme was complicated and was divided into four tiers depending on the net retail price of cigarettes. Framing sintax law as a health measure than a revenue measure paved way for. Starting 2018, the government expects to raise funds equivalent to about twothirds of the incremental revenues targeted under this tax reform law.

Tobacco and alcohol excise tax revenues as a percentage of gdp, increased from 0. For purposes of ascertaining the tax rate, the law pegged the classification of brands based on their net retail price. Fifteen percent 15% of the incremental revenue collected from the excise tax on tobacco products under r. Who sin tax expands health coverage in the philippines. Assessing the impact of the philippine sin tax reform law. Sin tax reform in the philippines open knowledge repository. The congressapproved bill also specifies that excise tax collections from existing laws, such as the tobacco and alcohol products under the sin tax law of 2012, and excise tax collections from sweetened beverages and tobacco products under tax reform for acceleration and inclusion train shall continue to form part of the funding sources for the annual budget for uhc. Duterte signs 1st tax reform package into law updated the train law reduces personal income tax but imposes higher tax on fuel, cars, tobacco, and sugary beverages to fund infrastructure and. Amending the sin tax law pids admin content management. Duterte signs 1st tax reform package into law rappler. Abstract implemented in january 20, republic act no.