Philippines: Annual Increase in Excise Tax for Alcohol Products at a Fixed Rate - Update

The Philippine excise tax for alcohol products increased by six percent on January 1, 2025, and will continue to increase at a fixed rate of six percent annually, as stipulated in the law, which does not include a sunset provision. Despite the annual increase in excise tax, traders are optimistic that sales of alcohol products, both local and imported, will grow five to seven percent each year. In 2024, the United States was the fourth largest supplier of imported alcohol products to the Philippines. The Philippines’ favorable consumer demographics, increasing consumption of alcohol products, and widespread acceptance of American products create an extraordinary profile that makes the Philippines an exciting market for U.S. alcohol products.