QuestionsQuestions (Republic Act No. 5482)
For distilled spirits effective January 1, 2013: (1) an ad valorem tax equivalent to 15% of the net retail price (excluding excise tax and VAT) per proof; and (2) a specific tax of P20.00 per proof liter, in addition to the ad valorem tax.
The specific tax rate of P20.00 per proof liter imposed under Section 141 is increased by 4% every year thereafter effective January 1, 2016 through revenue regulations issued by the Secretary of Finance.
“Proof spirits” is liquor containing one-half (1/2) of its volume of alcohol of specific gravity 0.7939 at 15°C. A “proof liter” means a liter of proof spirits.
It is the price at which the distilled spirit is sold on retail in at least five (5) major supermarkets in Metro Manila (or in the region for products marketed outside Metro Manila), excluding the amount intended to cover excise tax and VAT. It is determined by BIR through a price survey under oath.
It renders them liable for additional excise tax equivalent to the tax due and the difference between the understated suggested net retail price and the actual net retail price.
They are initially taxed based on suggested net retail price. After three (3) months, BIR validates the suggested net retail price and initially determines the correct tax. After nine (9) months from validation, BIR revalidates to finally determine the correct tax.
Still and carbonated wines with 14% alcohol by volume or less are taxed at P30.00 per liter. Still and carbonated wines with more than 14% but not more than 25% are taxed at P60.00 per liter.
Fortified wines containing more than 25% alcohol by volume are taxed as distilled spirits.
Any downward reclassification of present categories for tax purposes of fermented liquors duly registered at the time of effectivity of the Act that reduces the tax imposed or the payment thereof is prohibited.
The tax rate depends on whether the net retail price (excluding excise tax and VAT) per liter is P50.60 or less (lower bracket) or more than P50.60 (higher bracket), with the specific peso rates increasing periodically by 4% yearly.
They are subject to a tax rate of P28.00 per liter effective January 1, 2013, increased by 4% every year thereafter effective January 1, 2014.
Effective January 1, 2013: (1) an ad valorem tax equivalent to 20% of the net retail price (excluding excise tax and VAT) per cigar; and (2) an additional specific tax of P5.00 per cigar.
Packed by hand: 2013—P12.00 per pack; 2014—P15.00 per pack; 2015—P18.00 per pack; 2016—P21.00 per pack; 2017—P30.00 per pack. The rates then increase by 4% yearly thereafter starting 2018 via revenue regulations.
It refers to packaging of cigarette sticks using an individual person’s hands, not through any other means such as a mechanical device, machine, or equipment.
The Commissioner must affix or ensure unique, secure, nonremovable identification markings (e.g., codes or stamps) on unit packets/packages and outer packaging of cigarettes and bottles of distilled spirits; internal revenue stamps (bar code or fuson design or other markings) must be firmly and conspicuously affixed/printed on each pack/bottle in the manner and form prescribed.
It provides that importation of cigars and cigarettes, distilled spirits, fermented liquors and wines into the Philippines—even if destined for duty-free shops—is subject to all applicable taxes, duties, charges, including excise taxes. This also applies to goods brought into legally chartered freeports (e.g., Subic, Cagayan, Zamboanga, and other freeports established by law).
After deducting allocations under RA 7171 and RA 8240, 80% of the remaining balance of incremental revenue is for universal health care under the National Health Insurance Program, attainment of millennium development goals, and health awareness programs; 20% is allocated nationwide (based on political/district subdivisions) for medical assistance and health enhancement facilities, with annual requirements determined by DOH.