THE Bureau of Internal Revenue (BIR) is eyeing to raise P343.1 billion next year through the imposition of excise tax on selected products.
Based on to the Budget of Expenditures and Sources of Financing for fiscal year 2025, BIR collections from selective excises on goods will increase by 9.6 percent next year versus this year’s program of P313.08 billion.
Excise taxes on tobacco products account for the largest chunk at P148.93 billion expected to be collected next year, accounting for 43.4 percent of the BIR’s programmed excise tax collections for 2025.
This translates to an increase of 5.08 percent from this year’s program for tobacco excise of P141.73 billion.
The second largest share of 37.9 percent will come from alcohol products with P130.04 billion.
The excise tax from alcohol products will increase by 10.99 percent in 2025 from this year’s program of P117.16 billion.
Other excise tax contributors for next year are sweetened beverages and junk food with P39.28 billion, mining with P12.84 billion and automobiles with P6.5 billion.
Also adding to the excise tax collection for 2025 are those to be imposed on single-use plastics, expected to generate P5.31 billion, cosmetic procedures with P15 million and other miscellaneous excise taxes with P196 million.
The BIR is tasked to generate a total of P3.23 trillion in 2025.
This projection is 13.46 percent above the estimated collection of the agency for this year of P2.85 trillion.
The biggest contributor to the BIR’s projected collection for next year are taxes on net income and profits, expected to generate P1.71 trillion.
