EXCISE TAX COLLECTION UP 11% TO P52,867 BILLION IN 1st 10 MONTHS
MANILA, December 5, 2005 (STAR) By Des Ferriols - Rising oil prices has allowed the Arroyo administration to surpass its excise tax collection from oil companies, but collections from alcohol and tobacco companies, fell behind the government’s target during the first 10 months of the year.
Official data show that total excise tax collections during the period surpassed reached P52.867 billion mostly from petroleum products whose prices reached historic highs during this period, well over the P49.261-billion target and 11.32 percent better than the 2004 collection when total excise tax revenues amounted to P47.490 billion.
Records show that the excise tax on petroleum products generated a total of P16.642 billion compared to the target of P12.038 billion. In October alone, collections amounted to P1.812 billion.
Last year, records show that excise tax on petroleum products generated a total of P14.847 billion during the same period, an improvement of 12.08 percent.
In contrast, excise tax collections from tobacco and alcohol products whose tax rates were adjusted this year, amounted to P20.037 billion and P14.120 billion, respectively.
The 10-month collection fell short of the target of P12.120 billion from alcohol products and P20.790 billion from tobacco products. Data showed that these figures indicated a collection deficiency of 1.66 percent for alcohol and 3.62 percent for tobacco products.
Excise tax collections dropped during the first months of the year although collections gradually picked up. Despite the gradual improvement, however, total revenue generation from alcohol and tobacco continued to fall short of expectations.
The revises excise tax structure is expected to generate P7.09 billion on the first year. The revised version imposed a 12-percent increase in the excise tax on tobacco products on the first year, plus 40 centavos per pack. The tax would increase by another 3.6 percent plus 16 centavos per pack every two years until 2011.
Chief News Editor: Sol Jose Vanzi
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