New tax bill imposes additional P30 per proof liter

Under HB 8618, alcohol taxes for distilled spirits like gin, rum, and vodka will increase as follows:

Starting January 2019, 22% ad valorem tax on the net retail price of the alcohol product (excluding excise and value-added taxes) plus a specific tax of P30 per proof liter.

In addition to the 22% ad valorem tax, specific tax per proof liter will increase to P35 in 2020, P40 in 2021, and P45 in 2022.

From 2023 onwards, on top of the ad valorem tax, the specific tax will be increased by 7%.

For sparkling wines, the bill proposes an ad valorem tax of 15% of the net retail price (excluding excise and value-added taxes) per liter and a specific tax of P650 per liter. The specific tax will increase by 7% in 2020 onwards.

For still and carbonated wines with 14% alcohol or less, it will be P40 per liter, to be increased by 7% starting 2020. For still and carbonated wines with more than 14% alcohol, taxes will also increase by 7% on top of P80 per liter from 2020 onwards.

The tax on fermented liquors will be P28 per liter in 2019, P32 per liter in 2020, P34 per liter in 2021, and P36 per liter in 2022. After this, a 7% increase will be observed 2023 onwards.

The bill also seeks to increase the adjustment of alcohol taxes due to inflation from 4% to 7%.
SOURCE: Sofia Tomacruz (2018). House panel approves bill increasing alcohol taxes. Published 11:05 AM, November 22, 2018 Updated 11:08 AM, November 22, 2018.

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