A BILL that seeks to curb the Philippines’ alcohol consumption by increasing the taxes on pre-mixed alcoholic beverages was filed at the House of Representatives last week.
House Bill No. 11493, filed by Party-list Rep. Percival V. Cendaña on April 2, seeks to reclassify pre-mixed alcohols as fermented liquors instead of distilled spirits under the Philippine Tax Code. That means a P252 tax per liter of alcoholic content by 2031, according to a copy of the bill obtained by BusinessWorld.
Pre-mixed alcoholic drinks are described as beverages with less than 10% alcohol content and are made by combining them with fruit juices or carbonated water.
“The adjustment in excise tax rates on pre-mixed alcoholic beverages aims to reduce the harmful effects of alcohol consumption by discouraging excessive drinking, particularly among the youth and vulnerable sectors,” Mr. Cendaña said in the bill’s explanatory note.
A 2024 World Health Organization report said alcohol consumption contributes to 2.6 million deaths each year globally, with about 400 million people having alcohol use disorders, including 209 million living with alcohol dependence.
The Philippines ranked fifth in alcohol consumption compared with its regional peers, with Filipinos drinking at least six liters of alcoholic drinks in 2023, according to a Southeast Asia Stats report last year.
Pre-mixed alcoholic beverages in the Philippines are subject to a 22% ad valorem tax on top of a P69.60 specific tax per proof liter, according to excise tax rates on the Bureau of Internal Revenue’s (BIR) website.
“This bill seeks to reclassify pre-mixed alcoholic beverages as fermented liquors, imposing a revised excise tax structure that progressively increases specific tax rates from P82 per proof liter in 2026 to P252 per proof liter in 2031, with a 6% annual increase thereafter,” Mr. Cendaña said.
The proposed specific tax schedule for pre-mixed drinks is set to increase to P103 in 2027, P129 in 2028, P161 in 2029, and P201 in 2030, according to the bill.
All manufacturers or importers of pre-mixed alcoholic beverages must report their total sales and unshelved products to the BIR so the government could keep track of their inventory.
Establishments that inaccurately report their data to the BIR face the risk of having their business permits revoked. They may also be required to pay deficiency taxes with interest.
“Any person liable for any of the acts or omissions prohibited under this section shall be criminally liable and penalized,” according to the bill. Foreigners who violate the proposed law could be immediately deported after serving their criminal sentence. — Kenneth Christiane L. Basilio
