Proposed higher excise taxes likely to further stall consumer spending

“Raising excise taxes improves fiscal sustainability and creates room to finance public services and infrastructure,” he told BusinessWorld via Facebook Messenger. This could weaken even further if the government raises excise taxes, Foundation for Economic Freedom President Calixto V. Chikiamco said. “Higher excise taxes risk slower consumption and growth. Of course, the increased excise taxes are targeted to vice products and demand elasticity will determine how much consumption will decrease due to the increased excise taxes.” The DoF also seeks to expand the excise tax coverage to edible ices, including ice cream, sorbets, ice lollies and frozen yogurt.