QuestionsQuestions (BIR REGULATIONS NO. 17-99)
It is issued pursuant to Section 244 in relation to Sections 141, 142, 143 and 145 (A) and (C)(1)-(4) of the National Internal Revenue Code of 1997 (NIRC of 1997), to implement a 12% increase effective January 1, 2000.
They took effect on January 1, 2000.
Yes, Section 1 provides that the specific tax rates under the cited provisions are increased by twelve percent (12%), but the resulting new amounts differ per bracket/class because they are based on the existing specific tax rates for each category.
For that category, the specific tax rate increases from P8.00/proof liter to P8.96/proof liter (12% increase).
It increases from P4.00/proof liter to P4.48/proof liter.
It is determined by the net retail price per bottle of 750 ml (excluding VAT & excise): (1) less than P250.00; (2) P250.00 up to P675.00; or (3) more than P675.00. Each has a corresponding specific tax rate and its new 12% increased rate.
Sparkling wines/champagne are categorized by net retail price per bottle (excluding VAT & excise) regardless of proof, while still wines are categorized by alcohol by volume percentage (<=14%, >14% up to 25%).
Bracket 1: net retail price per liter (excluding VAT & excise) less than P14.50—P6.15 to P6.89; Bracket 2: P14.50 up to P22.00—P12.15 to P10.25 (as shown in the text); Bracket 3: more than P22.00—P12.15 to P13.61 (as shown in the text).
Cigars increase from P1.00/cigar to P1.12/cigar.
It provides brackets based on net retail price per pack (excluding VAT & excise): exceeds P10.00 per pack; P6.51 up to P10.00; P5.00 to P6.50; and below P5.00. Each bracket has a prior and new rate per pack, reflecting a 12% increase (e.g., P12.00/pack to P13.44/pack for packs exceeding P10.00).
It prevents decreases for existing brands even if the computed 12% increase formula would result in a rate lower than the tax actually paid before the effectivity date; in such case, the actual higher tax paid prevails.
Because of the proviso: if the prescribed new specific tax rate is lower than the excise tax actually being paid prior to January 1, 2000, the actual tax paid continues to apply. Illustration I shows prescribed P1.00 (x112% = P1.12) but actual was P3.30, so actual P3.30 applies.
The new specific tax rate is used because the illustration shows a case where the new prescribed rate (P5.60/pack) is higher than the actual tax being paid (P5.50/pack). The computed excise tax due is based on the new specific tax rate per pack.
The BIR conducts a physical inventory of all finished products for all brands on January 1, 2000 in the presence of authorized manufacturer representatives who jointly attest and verify the results by affixing their signatures on the inventory certificate attestation clause.
They must submit a duly notarized updated list of existing registered brands indicating net wholesale price per case, excise tax, VAT, and suggested retail price (excluding VAT and excise tax) within ten (10) days from the effectivity date of the Regulations.
It revokes all existing rules and regulations (or parts thereof) that are inconsistent with the provisions of BIR Regulations No. 17-99.
BIR Regulations No. 17-99 controls for matters covered by its provisions because it took effect January 1, 2000 and explicitly revokes inconsistent rules and regulations.