EXCISE TAX collections came in ahead of target in the first eight months, driven by higher volumes of tobacco and vapor products, according to the Bureau of Internal Revenue (BIR).
The BIR said in an e-mail that excise tax collections amounted to P222.65 billion during the period, beating the target by 0.75%.
The eight-month total was also 13.55% higher than the year-earlier tally.
“Excise taxes also contributed to BIR collection growth, with the additional deposits and increased volumes of tobacco and vapor products,” the BIR said.
The tally at the end of August was equivalent to 64% of the full-year excise tax target of P343.10 billion.
Excise taxes are imposed on the production, sale or consumption of tobacco, alcohol, and non-essential goods, among others.
Tobacco products accounted for P109.98 billion of the excise tax haul, exceeding the target by 14.71%. Year on year, tobacco tax collections were up 30.38%.
Taxes generated by alcohol products hit P75.88 billion during the period, missing the target by 9.37% though it exceeded the year-earlier tally by 1.81%.
Miscellaneous excise taxes, generated from automobiles, sweetened beverages, cosmetic procedures, and other non-essential goods — were 13.56% below target at P28.52 billion, and 5.15% lower than the year-earlier total.
Excise taxes on sweetened beverages (P24.55 billion) and automobiles (P3.74 billion) were also short of their targets.
Taxes generated by non-essential goods (P213.77 million) and cosmetic procedures (P15.21 million) both beat targets.
Excise tax collections generated by mining and mineral products amounted to P8.17 billion at the end of August, beating the target by 2.20%. They were up 16.20% from a year earlier.
Petroleum excise tax collections totaled P95.23 million, up 7.52% from a year earlier.
Overall, excise taxes accounted for 10.41% of the BIR’s revenue of P2.14 trillion at the end of August.
Meanwhile, the Development Budget Coordination Committee’s (DBCC) 2025 Midyear Report be equivalent to 16.8% of gross domestic product or P7.13 trillion in 2030, from 16.7% or P4.42 trillion in 2024.
The DBCC also said the BIR is expected to collect P5.51 trillion in 2030, while the Bureau of Customs to generate P1.29 trillion by that year.
“From 2025 to 2030, BIR collections are expected to rise by an average of 11.6% annually, while BoC collections are projected to grow by an average of 5.8% every year,” it said.
With the full-year impact of recently enacted tax reforms, the BIR and BoC are expected to post revenue growth rates of 11.2% and 5.7%, respectively, in 2026.
Meanwhile, the National Government (NG) is projected to spend P2.20 trillion on infrastructure by 2030, equivalent to 5.2% of GDP. The current ratio is 5.3% on expected spending of P1.51 trillion. — Aubrey Rose A. Inosante