THE country’s finance chief said he would not recommend the easing of restrictions on sin products during the enhanced community quarantine (ECQ), even as revenues generated from the excise taxes slapped on tobacco and alcohol products declined during the quarantine period.
“Sin taxes are imposed to discourage consumption of products that are detrimental to health. We do not wish to exacerbate the current health crisis,” Carlos Dominguez, Department of Finance (DOF) secretary, told reporters via Viber yesterday.
Dominguez was also asked if there was any advice from the Department of Health with regards to reducing smoking activities, since the coronavirus disease 2019 (COVID-19) can result to severe respiratory issues.
“This was taken up at my meeting with (Health) Secretary (Francisco) Duque,” Dominguez said.
The World Health Organization (WHO) said in its website smokers are likely to be more vulnerable to COVID-19 as fingers are in contact with lips which increases the possibility of transmission of virus from hand to mouth.
“Smokers may also already have lung disease or reduced lung capacity which would greatly increase risk of serious illness,” the WHO said.
The DOF earlier reported the excise tax collections of the Bureau of Internal Revenue (BIR) across all product categories posted large losses with actual payments amounting to only P76.47 billion for the January 1 to April 15 period, down P37.76 billion or 33 percent from P114.23 billion in 2019.
The BIR’s excise tax collection target for this period was P161.84 billion.
Excise tax collections from tobacco totaled only P33.19 billion, which is P24.56 billion or 42.5 percent below last year’s P57.75 billion collection.
The January 1 to April 15 excise tax collection from alcohol products reached only P17.85 billion, which is P6.24 billion or 26 percent lower than the collection of P24.09 billion for the same period in 2019.
Dominguez had said earlier he is against the lifting of the ban on alcoholic products, which was implemented by several local government units during the ECQ.
The Center for Alcohol Research and Development Foundation Inc. recently appealed to the government to lift the ban imposed nationwide on the purchase and sale of alcoholic beverages.
Meanwhile, while there is no outright ban on the sale of cigarette products, Dominguez said there are no withdrawals from factories, and only manufacturing for export is allowed.
“The BIR is vigilant against illicit cigarettes,” Dominguez also said.
