THE government is poised to collect P644.433 billion in excise taxes next year, as it seeks to generate more revenue while deterring the consumption of ‘sin’ products.
Combined excise tax collection of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) is projected to grow by 8.69 percent in 2027 from this year’s P592.896 billion target, the Budget of Expenditures and Sources of Financing for 2027 revealed.
BIR collections from selective excises on goods is seen to reach P380.861 billion, higher by 8.94 percent year-on-year from P349.578 billion.
Nearly half of the BIR’s target will come from excise taxes on tobacco products, pegged at P182.209 billion, up by 10.84 percent from P164.386 billion this year.
Collection of excise tax on alcohol products is estimated at P136.713 billion, a 7.21-percent increase from this year’s P127.508-billion program.
Other sources of excise tax collections next year include sweetened beverages at P39.669 billion, mining at P15.612 billion and automobiles at P6.241 billion.
The BIR is also expected to collect P41 million from excise taxes on cosmetic procedures, P13 million from tobacco inspection fees and P364 million from other miscellaneous excise taxes.
Meanwhile, the BOC’s excise tax collection is seen to rise by 8.32 percent to P263.572 billion in 2027 from this year’s P243.318-billion target.
The BOC collects excise taxes on specific imported goods at the port of entry before release from customs custody. These include petroleum products, alcoholic beverages, tobacco and vapor products, automobiles and other goods.
In the first half of 2026, the BOC has collected P113.344 billion in excise taxes, or 46.58 percent of its full-year target.
The BIR, on the other hand, amassed P127.691 billion from January to May this year, latest available data showed. This accounts for 33.52 percent of its entire goal for the year.
Aside from raising additional revenues for the government, excise taxes are imposed on certain products to discourage consumption of products considered harmful to health or the environment.
In the Philippines, a portion of ‘sin’ tax collections is earmarked for implementing the Universal Health Care program, increasing budgets for health insurance coverage and medical assistance, among other areas.
Recently, the Department of Finance (DOF) has proposed to expand excise taxes on sweetened beverages, distilled spirits, e-cigarettes and novel tobacco, plastic products and automobiles.
Doing so would yield an average of P107.3 billion in revenues for the government, the DOF estimated.
The recommendation is part of the DOF’s proposed ‘Progress Bill,’ a comprehensive tax reform package that seeks to provide tax relief for the middle class and small businesses while expanding sin taxes.