Excise tax collections exceed January-February goal

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Signed by President Rodrigo R. Duterte as Republic Act No. 10963, the Tax Reform for Acceleration and Inclusion (TRAIN) Act removed some exemptions to value-added tax as it increased tax rates for fuel, cars, tobacco, coal, minerals, documentary stamps, foreign currency deposit units, capital gains for shares not traded on the stock exchange, and stock transactions.

EXCISE TAX collections rose 74.23% in the first two months of the year driven by “sin taxes” after higher levies were imposed this year, the Department of Finance (DoF) said.

“Total excise tax collections imposed on various products for the January-February period amounted to P44.49 billion as against the target for this period of P38.53 billion, or an excess of P5.95 billion,” the DoF said in a statement on Wednesday, March 28.

“Compared with actual collections of P25.53 billion in 2017 for the same period, this represented an increase of 74.23%,” it added. — Elijah Joseph C. Tubayan