House okays hiked tax on alcohol, tobacco, vape

THE House of Representatives has approved on third and final reading a bill increasing the excise tax on alcohol, tobacco and vape products.

House Bill 1026 got 184 affirmative votes, two negative and one abstention.

Originally, the bill only covers increase in excise tax for alcohol but amendments were introduced and approved eventually by the plenary.

The bill was expanded to include provisions increasing taxes on electronic cigarettes and heated tobacco products.

HB No. 1026 would amend the National Internal Revenue Code of 1997 and Republic Act No. 10351, which restructured the excise taxes on alcohol and tobacco in 2012.

Under the bill that was approved in the 17th Congress — only in the House of Representatives — distilled spirits such as brandy, whisky and alcopops will be imposed a 22 percent ad valorem tax rate on the net retail price per proof plus a specific tax of P30 per liter beginning January 1, 2020.