Collections from sin taxes in 2015 was up by a quarter from the previous year’s P112.81 billion, reaching a record high P141.84 billion, as reported by the Bureau of Internal Revenue (BIR).
“Sin tax collections growing by a full quarter on year is no small feat,” Finance Secretary Cesar Purisima said in a statement. He also added that with the figures in for the third year of its implementation, sin tax reform is a lesson in good governance.
Also, BIR figures show an increase of market supply for cigarettes and fermented liquors which suggests an increase of consumption of sin products. Under the law, 85% of incremental revenues should go to universal healthcare program. The remaining 15 percent will help support tobacco farmers displaced by the reform.
