By CHINO S. LEYCO
July 25, 2010, 12:22pm

The national government’s excise tax collection increased by 10 percent in the first-six months of the year to P32.3 billion from P29.4 billion in the same period last year.

Data from the Department of Finance (DoF) also showed that excise tax collections in June alone reached P6.01 billion, a increase of 21 percent compared with P4.97 billion in the same month in 2009.

This year, the government does not expect a significant increase in its excise tax collections as the country’s excise tax regime has yet to be rationalized and also because fuel imports are expected to remain low this year.

According to the latest data from DoF, the government has set a target to collect P61.7 billion in excise tax this year, just P1.2 billion more than the P60.5-billion target set for last year.

Of the P61.7-billion target, the government expects the highest increase to come from taxes on alcohol and cigarettes. The government expects to generate P22.3 billion from excise tax on alcohol this year, slightly higher than the P20.6-billion target for last year.

Similarly, the government expects to collect P25.4 billion in excise tax on tobacco, from the P24.2-billion goal set in 2009. Revenues from tobacco inspection are expected to be the same amount at P6 million.

On the other hand, excise tax on fuel is expected to decline to P10.8 billion this year from the P12.7-billion collection target set for last year.

Excise tax on automobiles, meanwhile, is expected to hit P2.14 billion from the P2.02-billion goal for 2009 while other excise tax revenues are expected at P166 million this year from P157 million last year.

The government has been trying to push for the passage of a pending measure seeking to rationalize excise taxes.

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