In a bid to reduce harmful alcohol consumption, especially among young and vulnerable Filipinos, a new bill proposes higher taxes on pre-mixed alcoholic beverages to curb their accessibility and appeal.

House Bill No. 11493, filed by Akbayan Party-list Representative Percival V. Cendaña, seeks to reclassify pre-mixed alcoholic drinks as fermented liquors under the Philippine Tax Code, resulting in a substantial hike in excise taxes—from P82 per proof liter in 2026 to P252 by 2031, with a 6% annual increase thereafter.

The proposed reclassification would shift pre-mixed alcoholic beverages, currently taxed as distilled spirits with a 22% ad valorem tax and a specific tax of P69.60 per proof liter, to the more heavily taxed category of fermented liquors.

“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,” the bill’s explanatory note wrote.

The bill targets pre-mixed drinks, which typically contain less than 10% alcohol and are made by blending alcohol with fruit juices or carbonated water, as their affordability and sweet taste have made them popular among younger consumers.

To reduce demand for pre-mixed alcoholic drinks through price deterrence, the bill sets a progressive tax hike schedule: P103 in 2027, P129 in 2028, P161 in 2029, P201 in 2030, and P252 in 2031.

As mandated under the bill, all manufacturers and importers of pre-mixed alcoholic beverages must report their total sales and unshelved inventory to the BIR. 

Establishments found misreporting data could face business permit revocations and be liable for deficiency taxes with interest.

“Any person liable for any of the acts or omissions prohibited under this section shall be criminally liable and penalized,” the bill states. 

Moreover, it also provides for the deportation of foreign violators following the completion of their criminal sentence.

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