Between 6-7 May 2019, APISWA held an excise taxation policy Workshop with the Department of Finance Officials in Manila, in light of the Philippines’ government proposal of an increase in alcohol excise taxes as part of its comprehensive tax reform program for the country. APISWA invited a senior tax economist (from Diageo) and an international taxation expert (from KPMG) to speak about key factors to consider when proposing changes to the current sin tax system.
”APISWA highlighted our support for the government’s twin objectives of reducing harmful alcohol consumption and increasing tax revenue
Through the workshop, APISWA highlighted our support for the government’s twin objectives of reducing harmful alcohol consumption and increasing tax revenue to fund the government’s programs. We believe there is a fair and equitable tax structure alternative to the DOF’s proposal that will still meet these objectives but produce even more revenue for the government.
During the session, the industry was also represented by the local association Alcohol Beverage Alliance of the Philippines (ABAPI). In the long term, the industry recommends the government develop a target to bring unrecorded alcohol consumption into the tax system and support a simpler, more predictable alcohol taxation framework that supports government objectives.