BIR's Excise Tax Collections Rise 81.7% in January 2018 After TRAIN Law Implementation

The Bureau of Internal Revenue (BIR) reported that the Excise Tax Collections rose nearly 82% in January 2018 as the new tax law (TRAIN) kicked in. Pres. Rody Duterte signed the New TRAIN Law or the Republic Act No. 10963.


According to the statement released by the Department of Finance (DoF), collections from cigarette, cars and sweetened drinks hit P22.078 billion last month, up 81.7% from January 2017, while also exceeding the P20.501-billion target by 7.7%.

The statement was quoting BIR Commissioner Caesar R. Dulay, who reported the collections to the DoF’s executive committee.



Pres. Rody Duterted signed Republic Act No. 10963, the Tax Reform for Acceleration and Inclusion (TRAIN) Act which removed some exemptions to value-added tax as it increased tax rates for fuel, cars, tobacco, coal, minerals, documentary stamps, foreign currency deposit units, capital gains for shares not traded on the stock exchange, and stock transactions.

The Duterte admin through the TRAIN Law introduced a new tax covering cosmetic procedures. The BIR also said that tobacco excise collections doubled to P12.139 billion in January, while also exceeding the P7.944-billion target for the category.

BIR also reported that higher duties on automobiles soared to P443.34 million, more than double the P208.01 million collected in January last year and 29.4% higher than the P342.561 million goal for the month.



Taxes generated by sugar-sweetened drinks brought in P2.5 billion in revenue. Coca-Cola FEMSA Philippines, Inc. is ranked higher in number of revenue as it paid P1.186 billion in taxes. The company is followed by Pepsi Cola Philippines, Inc. with P666 million, ARC Refreshments Corp. with P293.015 million, Nestlé Philippines, Inc. with P143.5 million; and Inter Beverages Philippines with P112 million.

Other big firms which remitted the new taxes are Asia Brewery, Inc. with P18 million; Liwayway Marketing, P16.049 million; SMB Inc., P10.726 million; and Zesto Corp., P7 million.

The BIR is targeting to collect P2.039 trillion in taxes in 2018, which is 11.48% more than the P1.829 trillion goal it initially set early last year. If realized, this would also be 14.6% higher than the P1.779 trillion collected in 2017.

Source: PNA

BIR's Excise Tax Collections Rise 81.7% in January 2018 After TRAIN Law Implementation BIR's Excise Tax Collections Rise 81.7% in January 2018 After TRAIN Law Implementation Reviewed by Phil Newsome on March 01, 2018 Rating: 5
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