Tax collections from tobacco products increased by nearly three-fourths as of mid-February this year after one cigarette manufacturer commenced the operation of its new facility in Batangas, Manila Bulletin reported.
According to the Bureau of Internal Revenue (BIR), tobacco excise tax collections reached PHP 29.1 billion (USD 597 million) as of 18 February 2020, a 73 per cent increase compared to PHP 16.77 billion (USD 342 million) in the same period last year.
“Noticeably, we have a big increase in the collection of tobacco excises because JTI [Japan Tobacco International] opened its plant in Lima, Batangas,” BIR Deputy Commissioner Arnel Guballa was quoted as saying. He said that from February 1 to 18, the bureau collected PHP 17.57 billion (USD 360 Million) which is already above the target of PHP 16.85 billion (USD 345 million) for the month. Of this total, JTI paid PHP 10.94 billion (USD 224 million) in excise taxes. JTI Philippine’s’ February tax payment is 108 per cent higher than the PHP 5.25 billion (USD 107 million) paid in January, the report said.
“JTI Philippines overtook Philip Morris Fortune Tobacco Co. as the top tobacco excise taxpayer, with JTI’s remittance of PHP 10.94 billion accounting for 62 per cent of the total collection of PHP 17.57 billion for the Feb. 1-18 period,” Guballa was quoted as saying.