Title
Amendments on Specific Taxes under Commonwealth Act 466
Law
Republic Act No. 56
Decision Date
Oct 16, 1946
Republic Act No. 56 amends and repeals certain sections of Commonwealth Act No. 466, providing specific taxes for various products such as distilled spirits, wines, fermented liquors, tobacco products, matches, firecrackers, skimmed milk, oils, cinematographic films, playing cards, and saccharine, while also allowing for refunds on specific taxes for aviation oils.
A

Specific Tax on Distilled Spirits (Section 133)

  • Tax rates:
    • 45 centavos per proof liter if produced from sap of nipa, coconut, cassava, camote, buri palm, or from juice, syrup, or sugar of the cane.
    • 1.70 pesos per proof liter if produced from any other material.
  • Tax increases proportionally for spirits over proof strength.
  • Definitions:
    • "Distilled spirits" includes ethyl alcohol and similar substances derived from fermentation and distillation of various organic materials, including mixtures and dilutions.
    • Tax applies as soon as these spirits exist, regardless of subsequent processing or transformation.
    • "Proof spirits" defined as liquor with 50% alcohol by volume or specific gravity 0.7939 at 15°C; a "proof liter" is one liter of proof spirits.

Specific Tax on Wines (Section 134)

  • Rates per liter regardless of proof:
    • Sparkling wines: 2 pesos
    • Still wines containing ≤14% alcohol: 25 centavos
    • Still wines containing >14% alcohol: 50 centavos
  • Imitation wines with >25% alcohol are taxed as distilled spirits.

Specific Tax on Fermented Liquors (Section 135)

  • Applies to beer, lager beer, ale, porter, and other fermented liquors except tuba, basi, tapuy, and similar domestic liquors.
  • Tax: 15 centavos per liter.

Specific Tax on Products of Tobacco (Section 136)

  • Tax on manufactured tobacco products (excluding cigars, cigarettes, and specially prepared chewing tobacco): 75 centavos per kilogram.
  • Tax on tobacco specially prepared for chewing: 60 centavos per kilogram.
  • Applies to all tobacco twisted by hand or prepared without machinery, including scraps and remnants.

Specific Tax on Cigars and Cigarettes (Section 137)

  • Cigars taxed based on wholesale price tiers:
    • ≤30 pesos/thousand: 2.30 pesos/thousand
    • 30 to ≤60 pesos/thousand: 4.60 pesos/thousand

    • 60 pesos/thousand: 7.00 pesos/thousand

  • Cigarettes taxed based on wholesale price tiers:
    • ≤3 pesos/thousand: 2 pesos/thousand
    • 3 to ≤4.50 pesos/thousand: 4 pesos/thousand

    • 4.50 to ≤6 pesos/thousand: 5 pesos/thousand

    • 6 pesos/thousand: 6 pesos/thousand

  • Tax rate is determined by maximum wholesale factory price or importer’s price.
  • If maximum wholesale price less than manufacturing cost plus expenses, cost plus expenses determine tax.
  • Manufacturer/importer must file sworn statement disclosing maximum wholesale prices and cost details.
  • Selling cigarettes or cigars at wholesale above declared maximum price without prior notice to Collector is prohibited.

Specific Tax on Matches (Section 138)

  • Tax:
    • 50 centavos per gross of boxes with ≤80 sticks per box.
    • Proportionate additional tax if more than 80 sticks per box.

Repeal of Section 139

  • Section 139 of Commonwealth Act No. 466 is repealed.

Specific Tax on Firecrackers (Section 140)

  • Tax of 1 peso per kilogram.

Specific Tax on Skimmed Milk (Section 141)

  • Tax of 25 centavos per kilogram on condensed skimmed milk or skimmed milk (any form where cream removed), including container weight.

Specific Tax on Manufactured Oils and Other Fuels (Section 142)

  • Taxes per liter:
    • Kerosene/petroleum: 2 centavos
    • Lubricating oils: 5 centavos
    • Naphtha, gasoline, similar distillates: 7 centavos
    • Denatured alcohol for motive power: 0.5 centavo
  • If denatured alcohol mixed with gasoline already taxed, only alcohol component is taxed.
  • Withdrawal of high-proof denatured alcohol presumed for motive power unless proven otherwise.

Specific Tax on Cinematographic Films (Section 146)

  • Taxes collected once only on imported or locally manufactured films:
    • Films >8 mm and ≤16 mm width: 15 centavos per linear meter
    • Films >16 mm width: 20 centavos per linear meter
  • No tax on:
    • Previously taxed films returned to the Philippines
    • Negative or unprinted positive films.
  • Refunds available for taxes paid on such returned or untaxed films.

Specific Tax on Playing Cards (Section 147)

  • Tax:
    • 50 centavos per pack of up to 60 cards.
    • Same tax applies if cards are 2.5 cm x 6 cm or smaller.
    • Packs with more than 60 cards pay 50 centavos plus proportionate additional tax for excess cards.

Specific Tax on Saccharine (Section 148)

  • Tax of 75 pesos per kilogram.

Refund for Aviation Use of Oils (Section 15)

  • Within five years of Act's effectivity, 50% of specific tax on oils used in aviation is refundable.
  • Refund upon submission of sworn certification proving actual aviation use.

Effectivity (Section 16)

  • The Act takes effect on October 15, 1946.

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.