QuestionsQuestions (EXECUTIVE ORDER NO. 129-A)
The tax is P8 per proof liter. There is also a reduced rate of P4 per proof liter if produced in a pot still (or similar primary distilling apparatus) by a distiller producing not more than 100 liters a day and containing not more than 50% alcohol by volume.
They are taxed according to net retail price per bottle of 750 ml capacity (excluding excise tax and VAT): (1) less than P250: P75 per proof liter; (2) P250 up to P675: P150 per proof liter; (3) more than P675: P300 per proof liter.
“Spirits or distilled spirits” refers to ethyl alcohol/ethanol/spirits of wine including all dilutions, purifications, and mixtures, and includes whisky, brandy, rum, gin, vodka, and similar products/mixtures. “Proof spirits” is liquor containing 1/2 of its volume of alcohol of specific gravity 0.7939 at 15°C. A “proof liter” is a liter of proof spirits.
They are subject to the same tax as such chief ingredient (except toilet preparations, excluding water).
The tax is proportionally increased for any strength over proof spirits. The tax attaches as soon as the substance exists as such, even if later separated, purified, or transformed during production or subsequent processes.
It means brands not previously classified are taxed according to their present price tier. “Net retail price” is the price at which the distilled spirit is sold on retail in 10 major supermarkets in Metro Manila, excluding the excise tax and VAT, as of October 1, 1996.
(a) P500 or less: P100 per liter basis as stated for sparkling wines/champagnes; (b) more than P500: P300 per liter.
Still wines containing 14% alcohol by volume or less: P12. Still wines containing more than 14% but not more than 25%: P24 per liter.
Fortified wines exceeding 25% ABV are taxed as distilled spirits. Fortified wines are natural wines to which distilled spirits are added to increase alcoholic strength.
The tax is P6.15 per liter.
From P14.50 up to P22: P9.15 per liter. More than P22: P12.15 per liter.
Variants introduced after effectivity are taxed under the highest classification of any variant of that brand.
Within 30 days from effectivity of RA 8240, and within the first 5 days of every month thereafter, they must submit a sworn statement to the Commissioner of Internal Revenue of the volume of sales for each brand for the preceding three-month period.
Summary cancellation or withdrawal of the permit to engage in business as brewer or importer of fermented liquor.
(a) Cigars: P1 per cigar. (b) Cigarettes packed by hand: P0.40 per pack.
The tax is P12 per pack.