By Lawrence Agcaoili

Revenues collected from the so-called sin products rose close to 12 percent last year as cigarette and liquor makers advanced their withdrawals to avoid paying higher excise tax rates this year.

Preliminary data released by the Bureau of Internal Revenue showed that excise tax collected from cigarette and liquor makers reached P47.1 billion last year, or P4.9 billion more than P42.2 billion in 2007.

Excise tax paid by cigarette makers to the BIR climbed 17.9 percent to P27.35 billion from P23.19 billion as the volume of withdrawals went up 14.37 percent to 4.727 million packs from 4.133 million packs.

Excise tax collected from liquor makers inched up 3.9 percent to P15.63 billion in 2008 from P15.26 billion in 2007 as volume of withdrawals of fermented liquor rose 2.85 percent while that of distilled spirits increased 10.4 percent.

Major cigarette producers include Fortune Tobacco of taipan Lucio Tan, Philip Morris Philippines Manufacturing Inc. and La Suerte Cigar & Cigarette Factory. Alcohol producers are led by Ginebra San Miguel, Tanduay Distillers, Consolidated Distillers of the Far East, Diageo Philippines and Distileria Bago.

BIR officials said liquor and cigarette makers withdraw their products from their warehouses months before the increase in the excise tax rates as mandated by Republic Act 9334, or the indexation of sin taxes.

Local manufacturers also advanced their withdrawals from warehouses in late 2006 to take advantage of lower rates, resulting in a decline in the volume of tobacco products in 2007.

The law, signed by President Gloria Macapagal Arroyo in December of 2004, called for an increase in the excise tax slapped on sin products every two years until it reaches 20 percent by 2011.

The excise tax on cigarettes and alcohol products were increased by 8 percent this year.