QuestionsQuestions (Republic Act No. 9334)
RA 9334’s purpose is to increase the excise tax rates imposed on alcohol and tobacco products by amending several sections of the National Internal Revenue Code of 1997 (NIRC), specifically Sections 131, 141, 142, 143, 144, 145, and 288.
The tax is P11.65 per proof liter.
They are taxed based on the net retail price per bottle of 750 ml (excluding the excise tax and VAT), using three brackets: (1) < P250.00: P126.00 per proof liter; (2) P250.00 to P675.00: P252.00 per proof liter; (3) > P675.00: P504.00 per proof liter.
The tax shall be proportionally increased for any strength of the spirit over proof spirits, and the tax attaches as soon as it exists as such (even if later separated, purified, or transformed).
It is determined by the Bureau of Internal Revenue (BIR) through a price survey (or the National Statistics Office when deputized by BIR): the retail price in at least 10 major supermarkets in Metro Manila for nationally marketed brands, and in at least 5 major supermarkets in the region for brands marketed outside Metro Manila, excluding the excise tax and VAT.
Variants introduced after the Act’s effectivity are taxed under their proper classification based on suggested net retail price, but such classification cannot be lower than the highest classification of any variant of that brand.
Willful understatement of suggested net retail price by as much as 15% of the actual net retail price makes the manufacturer liable for additional excise tax equivalent to the tax due difference between the understated suggested net retail price and the actual net retail price.
They are increased by 8% every two years starting January 1, 2007 until January 1, 2011.
Any downward reclassification of present categories for tax purposes that would reduce tax imposed or payment is prohibited.
Fortified wines containing more than 25% alcohol by volume shall be taxed as distilled spirits.
Net retail price is the price at which wine is sold on retail in at least 10 major supermarkets in Metro Manila (for nationally marketed brands), or at least 5 major supermarkets in the region (for brands marketed outside Metro Manila), excluding the excise tax and VAT—determined by BIR through a price survey (or NSO when deputized).
P8.27 per liter.
P16.33 per liter.
They are subjected to the rate in paragraph (c) of Section 143 (i.e., the highest bracket rate applicable under the schedule).
It is an ad valorem tax based on the net retail price per cigar (excluding the excise tax and VAT): 10% if the net retail price is P500.00 or less; otherwise P50.00 plus 15% of the net retail price in excess of P500.00.
They follow different schedules: cigarettes packed by hand have fixed per-pack amounts by effectiveness dates; cigarettes packed by machine have rates that depend on net retail price brackets (with per-pack amounts varying by bracket and dates).
No. The provision states that importation of these items into the Philippines, even if destined for tax and duty-free shops, is subject to all applicable taxes, duties, charges including excise taxes due thereon.
Two and a half percent (2.5%) of incremental revenue is remitted directly to the Philippine Health Insurance Corporation for universal coverage of the National Health Insurance Program; another 2.5% is credited to the Department of Health as a trust fund for disease prevention. The earmarking is to be observed for five (5) years starting January 2005.