Cigarette vendors hike prices

WITH the effectivity of the controversial Sin Tax Reform on Tuesday, January 1, several small-scale cigarette vendors started to implement the hike even before the release of the batches of cigarettes covered by the increase.

With this, the Bureau of Internal Revenue (BIR) on Tuesday immediately imposed higher excise tax on tobacco and alcohol products, and hastened the issuance of the implementing rules and regulation (IRR) for the same national law.

Rosita Delgra, a cigarette vendor for several years along San Pedro Street, Davao City, said they opted to implement the new prices of cigarette based on the rate prescribed by the law and based on the prices from the suppliers.

Delgra said she has been reminding her customers that new rates have already took effect before purchasing.

"Wala man pud mi mabuhat kay taas naman pud ang presyo sa among gina kumprahan (We have no choice but to implement the increase since the prices from our suppliers have also increased)," she said.

Based on the same law, cigarette packs in 2013 with a net retail price of P11.50, minus the value-added tax and the excise tax, will have a P12 excise tax. An excise tax at a rate of P25 will be imposed to cigarette packs with a net retail price of over P11.50.

The rates will increase up to 2017. After 2017, a four percent increase on excise tax will be implemented annually after then. A pack of cigarettes will have a P30 uniform excise tax.

For alcoholic products, the regulations are exempting distillers or alcohol producers from paying the excise tax but not income and value-added taxes.

The excise tax will be shouldered by alcohol beverage makers or the compounders.