House approves bill to increase tax on alcoholic drinks again
The House of Representatives plans to put a P5-increase on alcoholic drinks
Aug 15, 2019
Drinking alcohol to celebrate occasions has always been a part of our culture, and while bonds are formed through these beverages, overconsumption can also pose threats to our health.
According to the 2015 Clinical and Health survey conducted by the Department of Science and Technology (DOST), a majority of Filipinos aged 20 to 49 engage in harmful use of alcohol in the form of binge drinking, or drinking excessively in one sitting. It was also stated in the same survey that the youth are at risk for the adverse health effects of alcohol consumption where it is highest in the urban areas.
In the record stated on the DOH Online National Electronic Injury Surveillance System (ONEISS), a total of 10,372 fatal and non-fatal accidents have occurred from 2016-2018 which are all alcohol-attributed road and traffic accidents. With this, the House of Representatives approves the bill seeking an increase of excise taxes on various alcohol products as presented by committee chair and Albay 2nd district Rep. Joey Salceda, the bill’s author.
It was just last year when the ad valorem tax was imposed on alcoholic drinks putting an increase of 22 percent on the net retail price with a specific tax of P30 per proof liter. With the new bill approved by the House, the tax per proof liter will now increase to P35 by 2020.
House Bill 1026 proposes to specifically increase the tax and indexation rate by 10 percent. A P5-increase will then be imposed every year until it reaches P45 per liter by 2022 and from 2023 onwards, the tax for alcohol will then climb again by 7 percent each year.
The increase will affect standard retail prices (SRP) including popular drinks such as Ginebra San Miguel gin, Emperador Light, San Miguel Pale Pilsen, and Red Horse beer.
“I commend the House of Representatives, specifically the Committee on Ways and Means chaired by Congressman Joey Salceda of Albay, for sponsoring this bill. The continuing partnership between DOH and the House of Representatives is certainly a positive proof that we are united in protecting the health of the Filipino people,” said Health Secretary Francisco T. Duque III.
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