QuestionsQuestions (Republic Act No. 11713)
EO No. 958 aimed to revise the statutory maximum retail prices (MRP) of cigarettes so that cigarette manufacturers would have sufficient leeway to adjust prices to meet current production costs, thereby avoiding production cutbacks and potential labor dislocation.
EO No. 958 amended Section 149(b) of the NIRC, revising the tax treatment tied to cigarette pack retail price categories.
The EO revises Section 149(b) by setting different specific tax amounts per thousand based on the retail price bracket of the cigarette pack and the pack size (e.g., packs of 30 or 20).
For packs of 30: (1) MRP per pack not exceed ₱1.60 → tax ₱3,000 per thousand; (2) MRP not exceed ₱2.00 → ₱5,000 per thousand; (3) MRP exceeds ₱2.00 → ₱8,000 per thousand.
For packs of 20: (1) MRP ≤ ₱3.65 → ₱20,000 per thousand; (2) ₱3.65 < MRP ≤ ₱4.50 → ₱28,000 per thousand; (3) ₱4.30 < MRP ≤ ₱5.05 (as written in the text) → ₱32,000 per thousand; (4) ₱5.50 < MRP ≤ ₱6.00 → ₱64,000 per thousand; (5) ₱6.00 < MRP ≤ ₱6.50 → ₱64,000 per thousand; (6) ₱6.50 < MRP ≤ ₱7.30 (as written) → ₱91,000 per thousand; (7) MRP > ₱7.30 → ₱121,000 per thousand.
If the cigarettes are of foreign manufacture, the specific tax is ₱121,000 per thousand regardless of the retail price or contents per pack.
Manufacturers were allowed to use their cigarette labels imprinted with the old maximum retail price for 120 days from the effectivity of the EO, after which they must comply with the amended requirements regarding printing the maximum retail price on each pack.
EO No. 958 took effect on June 7, 1984.
It repealed, amended, or modified any laws, decrees, executive orders, rules and regulations, and other issuances or parts thereof that were inconsistent with the EO.
Because inadequate allowed margins for price adjustment would make manufacturers unable to meet production costs, potentially forcing them to cut production, which could dislocate factory workers and reduce revenue collection.
EO No. 958 referenced the “latest revision” under EO No. 924, stating that the allowed margins for price adjustment had become inadequate, necessitating another revision.
It indicates that the tax is computed as specific tax per thousand units (i.e., per thousand packs), with the amount depending on pack size and retail price bracket.
It is an executive issuance that revises statutory tax-related rules by amending the NIRC provisions and setting transition and effectivity rules.
It shows EO No. 958 directly modifies the NIRC text; the amended tax rates and categories become part of the controlling statutory law upon effectivity, subject to any transitional rules provided in the EO.