- BIR have collected P6B from the excise tax imposed on sugary drinks in the first quarter of 2018
- BIR exceeded its first-quarter target by 16.8% and better than 2017’s by 14%
- The tax collected were as mandated under the TRAIN LAW
That’s a lot of zeroes.
A total of P6,000,000,000.00 have been collected by the Bureau of Internal Revenue (BIR) from the excise tax slapped on sugary drinks in the first quarter of 2018.
The bureau’s Commissioner Caesar R. Dulay said on Tuesday the excise tax collections from sugar-sweetened beverages “contributed a lot” to BIR’s first-quarter tax take.
Up by 14% from P370.6 billion a year ago, BIR earlier reported that its end of March collections reached P422.6 billion.
Additionally, BIR exceeded its first-quarter target of just P361.8 billion by 16.8%.
The huge amount of excise taxes that BIR collected from sugary beverages were as mandated under the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
Republic Act No. 10963 or the TRAIN Law was signed by President Rodrigo Duterte in December.
TRAIN Law has imposed new excise taxes on sugary drinks, cigarettes, oil and vehicles, among other goods, since January 1, 2018 in order to compensate for the restructured personal income tax regime that raised the tax-exempt cap to an annual salary of P250,000.
BIR Deputy Commissioner Marissa O. Cabreros explained: “You must understand that the sugar-sweetened beverage tax is new – it’s the first time to be part of the excise tax family or tax structure, so it’s being refined. There are several consultations being made with the stakeholders because we don’t want to be overburdened with something that is not realistic and we cannot implement. At the same time, we want to make it easier for them to comply and also easier for us to monitor and verify their reporting.”