The bicameral (bicam) conference committee approved the proposed measure seeking to increase taxes on alcoholic drinks, heated tobacco products, and vapor cigarettes.
In an interview after the bicam meeting, Senator Pia Cayetano and Albay Rep. Joey Salceda said the reconciled version of Senate Bill No. 1074 and House Bill No. 1026 is expected to give the government an additional P24.9 billion in revenues.
“Distilled spirits, fermented liquors, and wines will be given an ad valorem tax of 22% starting next year.”
Cayetano said under the final version, distilled spirits, fermented liquors, and wines will be given an ad valorem tax of 22 percent starting next year.
In addition to the ad valorem tax, a specific tax will be imposed yearly until 2024.
“For fermented products, which is beer, the specific tax will start at 35 percent on 2020, 37 percent (2021), 39 percent (2022), 41 percent (2023) and 43 percent (2024),” the veteran legislator told reporters.
“In the case of distilled spirits, the specific taxes will start at 42%, 47%, 52%, 59% and 66% by 2024.”
In the case of distilled spirits, the chair of the Senate Ways and Means Committee said the specific taxes will start at 42 percent, 47 percent, 52 percent, 59 percent and 66 percent by 2024.
The seasoned lawmaker said the bicam panel has also agreed on the rates for heated tobacco products, vapor products with nicotine salt and conventional “freebase” or “classic” nicotine products.
The Senate and the House are set to ratify the bicam report.
Cayetano and Salceda said they expect to submit the ratified version to Malacañang next week for President Rodrigo Duterte’s signature.