Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 2-97)
Alcohol products refer to distilled spirits, wines, and fermented liquor as provided under sections 138, 139, and 140 of the Tax Code as amended by Republic Act 8240.
Existing brands are those registered and active prior to January 1, 1997, while new brands are those registered after this date or previously registered but inactive brands.
For such spirits, a tax of P8.00 per proof liter is levied. If produced in a pot still or similar device by a small distiller producing not more than 100 liters a day with not more than 50% alcohol by volume, the tax is P4.00 per proof liter.
If net retail price per 750ml bottle is less than P250, the tax is P75 per proof liter; between P250 to P675, it's P150 per proof liter; and above P675, it's P300 per proof liter.
Fortified wines containing more than 25% alcohol by volume are taxed as distilled spirits, while other wines are taxed per liter at specified rates based on type and price.
They must submit a written application, plat and plan, incorporation articles or DTI permit, latest income tax return, mayor's permit, VAT registration, surety bond of not less than P10,000, details on brewing facilities, and supplier information.
Regular official labels must have detailed tax and product info and be affixed firmly on secondary containers, while auxiliary labels must be affixed to bottles or immediate containers to prevent tampering, with specified placement over the bottle mouth.
Before removal of the products from the place of production, manufacturers must file BIR Form No. 2200 and pay the excise tax due, unless authorized to pay in advance or by deposit under specified arrangements.
They can face summary cancellation or withdrawal of permits to engage in business, treble fines on deficiency taxes, criminal penalties under Section 253 of the Tax Code, and if foreign nationals, deportation after sentence.