The Senate ratified the bicameral conference committee report on the measure that will tax electronic cigarettes and raise excise taxes on alcohol, which is expected to give the government an additional PHP24.9 billion in revenues.
The bicameral conference committee earlier reconciled Senate Bill No. 1074 and House Bill No. House Bill No. 1026.
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 liquor, the specific tax will start at 35 percent in 2020, 37 percent (2021), 39 percent (2022), 41 percent (2023) and 43 percent (2024).
In the case of distilled spirits, the specific taxes will start at 42 percent next year, 47 percent, 52 percent, 59 percent, and 66 percent by 2024.
Meanwhile, all bottles of wine will be taxed an additional PHP 50.
On the other hand, e-cigarettes will be taxed as follows: heated tobacco products, PHP25; vapor products with nicotine salt, PHP37; and conventional “freebase” or “classic” nicotine products, PHP45.
The House of Representatives is also set to ratify the measure Wednesday.
Once ratified by both chambers of Congress, the measure will be submitted to Malacañang for President Rodrigo Duterte’s signature. (PNA)