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Monday, July 13, 2009

Higher ‘sin tax’ deferred to 2012
By Lawrence Agcaoili

The Finance Department has finally agreed to defer any possible increase in the excise tax on sin products, especially on alcohol products and cigarettes, to 2012 due to the global economic slowdown.

Finance Undersecretary Gil Beltran told reporters that any amendments to the excise tax structure on cigarettes and liquors would likely take effect after the full implementation of Republic Act 9334, or the indexation of excise tax on tobacco and alcohol products.

Beltran said the indexation of sin tax that was signed into law by President Gloria Macapagal Arroyo in December of 2004 called for the increase on the excise tax on tobacco and alcohol products every two years. The next adjustment would be implemented next year. . . . . . .



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