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THE
International Wines and Spirits Association is pushing
for a uniform set of excise tax for alcoholic drinks in
place of a complicated set that is biased toward
imported variety.
Inactive
for several years and considered moribund by many, the
reactivated umbrella group supports the uniform excise
rate for alcohol products pushed by Rep. Danilo Suarez
under House Bills 3759 and 3787.
According to Diageo Philippines Inc., importers of wines
and spirits, the legislative proposal seeks to impose a
uniform excise rate for alcohol products up to a maximum
of P400 per liter.
The
association, however, prefers capping the excise rate at
P180 per liter, an amount it finds more reasonable.
According to the umbrella group, excise ranging from
P130 per liter up to P180 per liter for wines and
spirits encourages compliance.
The
group also said that while the wine-importing industry
understands the preferential treatment accorded domestic
producers of wines and spirits, the excise regime
“violates the covenant to which the Philippines agreed
under the World Trade Organization [WTO].”
The
association noted the excise-rate differential between
the locally manufactured alcohol products and their
imported counterparts is so wide it practically goes
against the intent of the WTO agreement.
Wines
and spirits, whether locally produced or imported, are
levied an excise tax based on a three-tier system.
Diageo
Philippines is 40-percent owned by the Palanca Group and
60 percent by Diageo’s old persona as the International
Distillers and Vintners Inc.
Legislators plan to overhaul the entire excise system to
raise as much revenues as could be extracted from the
industry.
The
World Bank has released a study showing additional
excise collection of more than P86 billion a year if the
government were to impose a uniform excise rate instead
of the three-tier system. |
