Wine dinners are still a rare occasion in Cebu.
Radisson Blu Cebu is offering a 5-course wine dinner. Featuring delectable dishes prepared by Executive Chef Roberto Kunitz. Paired with the glorious wines of Escudo Rojo, Baron Philippe de Rothschild's Chilean winery.... read more
The New Year not just brought new resolutions, it also ushered higher taxes on “sin products” such as alcohol and tobacco products—beer, cigarettes, etc.
Dubbed as an early Christmas gift for the Filipino people, President Noynoy Aquino signed Republic Act No. 10351 or the Sin Tax Reform Bill last December 20, officially transforming it into law effective January 1, 2013. The objective of which is to increase availability of health benefits while discouraging citizens to spend on sinful products.
Tax increase on products will depend on its retail pricing until a uniform tax treatment begins on 2017. For example, cigarettes with a retail price of P11.50 and below will have a tax of P12 per pack while those with a higher retail price will be given a tax of P25.00 per pack. The tax rates will go up to P17.00 and P27.00 in 2014, P21.00 and P28.00 in 2015 and P25.00 and P29.00 in 2016. By 2017, all tax rates for cigarette packs will be at P30.00, rising by 4% annually after that.
On the cases of beer products, if your net retail price is P50.60 or below, a sin tax of P15.00 per liter will be added and P20.00 per liter for those who have higher retail prices.
For fermented liquor (beer), the tax is P15 per liter if the net retail price is P50.60 and below per liter, and P20 per liter for those with a higher price. The same tax rate increase annually will be imposed on beers and will have a uniform tax rate of P23.50 will be imposed by 2017, again with an annual increase of 4%.
Here is a quicker reference for the new tax rates as per www.rappler.com
Cigarettes packed by hand (this comprises bulk of tobacco products produced in the country) - P12.00 per pack
Cigarettes packed by machine - P12.00 if the cost per pack is P11.50 or below; P25 for packs that cost more than P11.50.
Cigars - additional P5.00 per cigar
Distilled spirits - P20 per proof liter
- P250 if the net retail price (excluding the excise and value-added taxes) per bottle of 750 ml is P500 or less;
- P700 if the cost is more than P500
Still wines and carbonated wines containing 14% of alcohol by volume or less - P30.00
Still wines and carbonated wines containing more than 14% of alcohol by volume but not more than 25% of alcohol by volume - P60.00
Fortified wines containing more than 25% of alcohol by volume shall be taxed as distilled spirits
Fermented liquors- P15 if the net retail price (excluding excise and value-added taxes) per liter of volume capacity is P50.60 or less
- P20 if the net retail price (excluding excise and value-added taxes) per liter of volume capacity is more than P50.60
- P28.00 for fermented liquors brewed and sold at microbreweries or small establishments such as pubs and restaurants, regardless of the net retail price.
Predicted sin tax collections for 2013 will amount to P33.96billion, P42.82B in 2014, P50.63B in 2015, P56.86B in 2016 and P64.18B in 2017, amounting to P248.49B in just 5 years. This is according to Sen. Franklin Drilon who principally authorized the said bill. 70% of said collections will be coming from tobacco products. This said amount, provided that all will be transparently and honestly reported and liquidated, will help in the many programs that the government is planning for the citizens.
Percentages for said incremental revenues are set for programs beneficial to tobacco farmers, universal health cares, the DOH required programs.
Our forums are abuzz with differences of opinions regarding said law, with intellectual and in-depth discussions of the domino effect of said law. While there are a lot who agree to the said law, especially on the direct effect of cutting down vices, other iSTORYAns have thought as deep as the increase of job dislocation in affected industries; the transparency of where the tax revenues would go (BIR sure has a lot in their hands for the coming years) and the possibility of smuggling and other illegal acts. You can view and participate in the discussions at this thread: https://www.istorya.net/forums/politi...arette-25.html
So, mag iSTORYA TA (Let's talk) : What do you think of this new law? Are you for or against the Sin Tax Reform Bill of 2012? What are your thoughts?