Bill slaps higher excise on flavored alcoholic drinks
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A House official is pushing for a higher excise on pre-mixed, flavored alcoholic drinks, like alcopops, alcomixes, coolers, cruisers, and breezers with alcohol content under 10 percent.
House Bill No. 1810, filed by House ways and means committee chair Rep. Joey Salceda, sought to reclassify pre-mixed, flavored alcoholic beverages under the National Internal Revenue Code.
At present, such drinks are classified under “distilled spirits” and are imposed a 22-percent ad valorem tax plus a specific tax of P52.
The bill proposed to classify pre-mixed drinks under the same category as fermented liquors, like beer, lager beer, ale and porter made in factories, micro-breweries and small establishments.
These beverages should have less than 10 percent alcohol content and made by combining an alcoholic product like fermented liquor, distilled spirit, wine, etc. with nonalcoholic ingredients like fruit juice, cream, carbonated water and syrup.
Pre-mixed, alcoholic drinks include alcopops, alcomixes, coolers, spirit coolers, wine coolers, cruisers and breezers, and other similar beverages.
“The enactment of this measure will contribute to reducing the burden of the harmful use of alcohol. Other health, safety and socioeconomic problems attributable to alcohol will be likewise addressed,” the bill read.
By reclassifying pre-mixed, flavored alcoholic drinks, these drinks will be subject to an excise hike of 6 percent every year effective January 1, 2025.
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