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Solon seeks excise tax hike on pre-mixed alcoholic beverages

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RG Cruz, ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Alcoholic beverages on display at a Supermarket in Quezon City. Gigie Cruz, ABS-CBN News" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/business/08/19/20190214-beer-stand-gcs-205644.jpg"/><figcaption>Alcoholic beverages on display at a Supermarket in Quezon City. Gigie Cruz, ABS-CBN News</figcaption></figure></div> MANILA - House Ways and Means Committee Chair, Albay 2nd District Rep. Joey Salceda wants to increase the excise tax imposed on pre-mixed alcoholic beverages and fermented liquors.Salceda filed House Bill 1810 which would amend Section 143 of the National Internal Revenue Code.Under this section, the tax rates shall be increased by 6% every year effective January 1, 2025 through revenue regulations issued by the Secretary of Finance.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/01/01/22/higher-taxes-on-alcohol-cigarettes-now-in-effect">Higher taxes on alcohol, cigarettes now in effect</a>vv</li></ul>The bill states that pre-mixed alcoholic beverages included but are not limited to alcopops, alcomixes, coolers, spirit coolers, wine coolers, cruisers, and breezers shall mean flavored beverages sold as being ready to consume with an alcohol content of not more than 10 percent and made by combining an alcoholic product such as fermented liquor, distilled spirit, wine, or other alcoholic beverage with non-alcoholic ingredients such as but not limited to fruit juice, cream, carbonated water, and syrup.It also states that pre mixed alcoholic beverages shall be taxed as fermented liquor.In his explanatory note, Salceda said his bill seeks to adjust the excise tax rates on pre-mixed alcoholic beverages similar to beer, citing similar consumption patterns. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/01/23/20/duterte-signs-law-raising-taxes-on-alcohol-e-cigarettes">Duterte raises taxes on alcohol, e-cigarettes; exempts certain medicines</a></li></ul>“Currently classified under distilled spirits and taxed with rates of 22% ad valorem tax plus a specific tax rate of P52.00, pre-mixed alcoholic beverages will be reclassified and taxed as fermented liquors that will include flavored beverages sold as being ready to consume, with an alcohol content of not more than ten percent (10%), and made by combining an alcoholic product such as fermented liquor, distilled spirit. wine or other alcoholic beverage with non-alcoholic ingredients.” Salceda said.“The enactment of this measure will contribute to reducing the burden of the harmful use of alcohol. Other health, safety, and socioeconomic problems attributable to alcohol will likewise be addressed with the implementation of this measure.” Salceda added.

Tax rates shall be increased by 6% every year effective January 1, 2025 through revenue regulations issued by the Secretary of Finance.

Solon seeks excise tax hike on pre-mixed alcoholic beverages

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Solon seeks excise tax hike on pre-mixed alcoholic beverages

RG Cruz,

ABS-CBN News

Published Aug 19, 2022 12:28 PM PHT

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Joey Salceda

excise tax

tax

alcoholic beverages

alcohol

House of Representatives

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