Bill imposes higher excise duties on flavored alcoholic beverages

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A House official is pushing for a higher excise duty on pre-mixed and flavored alcoholic beverages, such as alcopops, alcomix, coolers, cruisers and icebreakers with an alcohol content of less than 10%.

House Bill 1810, introduced by House Ways and Means Committee Chairman Rep. Joey Salceda, sought to reclassify premixed and flavored alcoholic beverages under the National Tax Code.

Currently, these beverages are categorized as “distilled spirits” and are subject to an ad valorem tax of 22% plus a specific tax of 52 pesos.

The bill proposed to classify premixed beverages in the same category as fermented liquors, such as beer, lager, ale and porter made in factories, microbreweries and small establishments.

These drinks must have an alcohol content of less than 10% and be made by combining an alcoholic product such as fermented liquor, distilled liquor, wine, etc. with non-alcoholic ingredients like fruit juice, cream, sparkling water and syrup.

Premixed alcoholic beverages include alcopops, alcomix, coolers, spirit coolers, wine coolers, cruisers and brewers and other similar beverages.

“The adoption of this measure will help to reduce the burden of the harmful use of alcohol. Other health, safety and socio-economic issues attributable to alcohol will also be addressed,” the bill states.

By reclassifying pre-mixed and flavored alcoholic beverages, these beverages will be subject to an excise duty increase of 6% each year from January 1, 2025.


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