SIN TAX COLLECTION DROP

Metro Manila (CNN Philippines) Sin tax collections dropped in March as the new
graphic health warnings for cigarette packs caused sales to drop.

The Bureau of Internal Revenue (BIR) collected P8.09 billion in excise taxes in March,
down slightly from the P8.24 billion netted last year.

The drop was mainly due to lower tax collections from tobacco products, at P4.04 billion
in March from P4.82 billion a year ago.

The BIR said the initial implementation of the Graphic Health Warning Law caused a
drop in sales of cigarette packs. The volume totaled 148.6 million packs in March, a
25% drop from 200.3 million a year ago.

For the first quarter, sin tax collections hit P26.62 billion, up by more than a fifth from
P21.68 billion netted in the same period in 2015. The government fought hard for an
increase in sin taxes in 2013. It aimed to shore up revenues and, at the same time,
discourage smoking and drinking.

Sin tax revenues will be funneled to the Philippine Health Insurance Corp. to help cover
the health costs of its indigent members. Revenues will also be given to local
governments so they can help tobacco farmers seek alternative livelihood.