Title
Tax on distilled spirits and fermented liquors
Law
Republic Act No. 5449
Decision Date
Sep 25, 1968
Republic Act No. 5449 increases the specific tax on certain distilled spirits and fermented liquors in the Philippines, while also regulating the denaturation process by limiting it to distilleries and requiring the presence of designated representatives from the Bureau of Internal Revenue.
A

Definitions Related to Distilled Spirits

  • "Distilled spirits" includes all ethyl alcohol, hydrated oxide of ethyl, or spirits of wine typically produced by fermentation and distillation of grains, starch, molasses, sugar, or sap.
  • Tax applies from the moment the distilled spirit exists, whether pure or impure, and regardless of subsequent transformations.
  • "Proof spirits" are defined as liquor containing 50% alcohol by volume with a specific gravity of 0.7939 at 15°C.
  • A proof liter means one liter of proof spirits.

Specific Tax on Fermented Liquors

  • Applies to beer, lager beer, ale, porter, and other fermented liquors except domestic products like tuba, basi, and tapuy.
  • The tax rate is set at 0.275 pesos per liter of volume capacity.

Regulation of Denaturation of Alcohol

  • Denaturation of alcohol must occur only within distillery premises.
  • This process shall follow formulas approved by the Bureau of Internal Revenue.
  • Denaturation must be carried out in the presence of representatives of the Bureau of Internal Revenue.

Effectivity

  • The Act takes effect immediately upon approval.
  • Approved on September 25, 1968.

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