Alcoholic drinks soon to get more expensive thanks to Congress

Alcoholic drinks soon to get more expensive thanks to Congress




Kampay!!!

Filipinos generally loves to drink alcohol, truth be told based on statista.com, revenue in the Alcoholic drinks market amounts to US$6,774 million for the year 2018 the market is expected to grow annually by 4.8%.

Just look at San Miguel Corporation it has weathered all the test of time and still it keeps growing/ expanding as a company. Its flagship product of beer has spawned different kinds that caters to the different orientation of Filipino drinkers.

Different liquors (photo credit to owner)


Inflation you say would stop Filipinos drinking alcohol? Nope. Its already in our culture to drink of such kind.

Available data shows that there are over 37,000 deaths attributable to alcohol consumption, and alcohol drinking prevalence.

But all of that might change since the Lower House committee approved   higher excise taxes, that has a direct effect of increasing the prices of alcoholic drinks such as distilled spirits and fermented liquor.

The technical working group (TWG) of the House ways and means committee gave the green signal for the increase in the ad valorem rate slapped on distilled spirits to 22 percent, on top of specific tax rates of P30, P35, P40 and P45 per proof liter yearly between 2019 and 2022 and a 7-percent annual hike beginning 2023.

The present ad valorem tax is at 20% per proof , while the specific tax was P22.50 per proof liter.


The present excise tax for fermented liquor is at
P24.44 per liter, but its higher P34.07 if brewed and sold at microbreweries or small establishments.

Action for Economic Reform(AER) a non-governmental group says the lower house committee also approved the shifting to a unitary excise rate of P650 per bottle for sparkling wines

AER further alleges that the excise tax hike approved is below the mandated rates under Republic Act (RA) No. 10351 or the Sin Tax Reform Law of 2012.

“Today is a sad day for the health and well-being of the Filipino people. The alcohol tax rates approved by the committee on ways and means in the Congress will neither prevent Filipinos from being exposed to the adverse health and social effects of alcohol consumption, nor generate a significant amount of revenue that would be crucial in funding key health measures in the country,” Maricar Limpin  head of the Philippine College of Physicians’(PCP) cluster on public health said.

“Scientific evidence now shows that alcohol consumption at any level increases risk to cancers, especially cancers of the gut. More than revenue, we are looking at alcohol tax as a health measure,” Limpin added.


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Report from Phil Daily Inquirer

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