By Lawrence Agcaoili

Liquor maker Distileria Limtuaco & Co. Inc., the oldest distillery in the country, is strongly supporting plans to rationalize the country?s excise tax scheme being implemented by the Bureau of Internal Revenue on sin products, especially tobacco and alcohol.

Olivia Limpe Aw, president of Distileria Limtuaco, said in a position paper submitted to the House of Representatives that a single tax rate should apply to all brands and that there should be no distinction between existing brands and variants of brands and new brands.

?We recommend the removal of the multilevel tax classification on alcohol products and to impose a single rate on similar products. In reality, it is very difficult for the BIR to capture the changes in the net retail prices of alcohol products, which is currently the basis for the imposition of the excise tax,? Limpe Aw said.

She added that a higher single excise tax rate should also be imposed on all imported distilled spirits and alcoholic beverages such as whisky, rum, gin, vodka, brandy, liqueurs, and cordials.

?The only way to protect the local industry is to impose higher taxes on imported spirits and alcoholic beverages, including wines,? she stressed.

She said the duties slapped on imported spirits had been reduced to a minimal rate of 5 percent under the Asean Common Effective Preferential Tariff scheme.

According to her, legitimate importers would not oppose the higher excise tax rate as long as the government plugged the loopholes on parallel imports as well as rampant smuggling that result in unfair competition.

Limpe-Aw said the company was not opposing the proposed increase in excise tax rate on alcohol products that would result in a reduction in volume as the government needed to raise revenues to bankroll infrastructure projects and social services.