Pacquiao pushes for excise tax hike on alcoholic drinks

by ABS-CBN News, Feb 6, 2019

MANILA – Senator Manny Pacquiao on Wednesday pushed for higher taxes on alcoholic beverages, following a similar proposal to raise duties on cigarettes.

Pacquiao’s bill seeks to raise the excise tax on beer or fermented liquor to P40 per liter from P25.42 per liter. This is higher than the P28 proposed in the House of Representatives, said Finance Undersecretary Karl Kendrick Chua.

The Senate measure seeks to raise the excise tax rate on distilled spirits to 25 percent of net retail price from 20 percent, or P40 per proof liter from P23.40, Chua said. The House version called for a P30 per liter levy.

Pacquiao’s DOF-approved version proposed to the tax on sparkling wines and champagne to P335 from 316.34, to P40 from P37.96 per bottle of still and carbonated wines with 14 percent or less alcohol, and to P80 from P75.93 for those with more than 14 percent but not more than 25 percent alcohol.

Pacquiao’s version also proposed a 10 percent increase on wine excise tax every year to account for inflation, Chua said

“Alcohol intoxication is dangerous to our health and bad for our society… By increasing the tax, this can discourage the youth, the poor and the marginalized to be exposed to alcoholic beverages at an early age,” said the champion boxer turned politician.

Alcohol intoxication was linked to more than 200 health conditions and numerous cases of sexual and drug abuse, suicide and accidents, Pacquiao said, citing a World Health Organization report.

Once approved, there will be an additional P6.40 excise tax per bottle of Ginebra San Miguel, P9.16 per bottle of Emperador, P5.39 per bottle of San Miguel Light and P5.41 per bottle of San Miguel Pale Pilsen, Chua said.

Pacquiao is also seeking to raise the excise tax on cigarettes to P60 per pack from P32.50.

President Rodrigo Duterte earlier approved the health and finance departments’ proposal to raise the excise tax on tobacco and alcohol products.