Commonwealth Act 466 excise tax amendments
- Section 1 of Republic Act No. 219 amends Section 133 of Commonwealth Act No. 466, as amended by Republic Act No. 56.
- Section 2 of Republic Act No. 219 amends Section 134 of Commonwealth Act No. 466, as amended by Republic Act No. 56.
- Section 3 of Republic Act No. 219 amends Section 135 of Commonwealth Act No. 466, as amended by Republic Act No. 56.
- Section 4 of Republic Act No. 219 amends Section 137 of Commonwealth Act No. 466, as amended by Republic Act No. 56.
- Section 5 of Republic Act No. 219 provides the effectivity rule.
Distilled spirits: specific tax rates
- Section 133 provides that, on distilled spirits, specific taxes are collected “except as hereinafter provided” under the following rates.
- Distilled spirits produced from sap of the nipa, coconut, cassava, camote, or buri palm, or from the juice, sirup, or sugar of the cane are taxed at forty-five centavos per proof liter.
- Distilled spirits produced from any other material are taxed at three pesos and fifty centavos per proof liter.
- The tax is proportionally increased for any strength of the spirits taxed over proof spirits.
- “Distilled spirits” includes:
- ethyl alcohol, hydrated oxide of ethyl, or spirits of wine; and
- substances commonly produced by fermentation and subsequent distillation of grain, starch, molasses, or sugar, or of some sirup or sap;
- all dilutions or mixtures; and
- the tax attaches as soon as the substance is in existence as such, whether subsequently separated as pure or impure spirits or transformed into other substances in the original production process or by any subsequent process.
- “Proof spirits” are liquor containing one-half of its volume of alcohol of a specific gravity of seven thousand nine hundred and thirty-nine ten-thousandths at fifteen degrees centigrade.
- A “proof liter” means a liter of proof spirits.
Wines and imitation wines: per-liter rates
- Section 134 requires specific taxes on wines and imitation wines collected per liter of volume capacity under the following rates.
- Sparkling wines are taxed at four pesos (regardless of proof).
- Still wines containing fourteen per centum of alcohol or less are taxed at fifty centavos, except those produced from casuy and duhat.
- Still wines containing more than fourteen per centum of alcohol are taxed at one peso.
- Imitation wines containing more than twenty-five per centum of alcohol are taxed as distilled spirits.
Fermented liquors: specific tax
- Section 135 imposes specific taxes on beer, lager beer, ale, porter, and other fermented liquors.
- The tax applies to these products except tuba, basi, tapuy and similar domestic fermented liquors.
- The tax rate is eighteen centavos per liter of volume capacity.
Cigars and cigarettes: tax classes by wholesale price
- Section 137 imposes specific taxes on cigars and cigarettes as follows.
- For cigars, the tax depends on the manufacturer’s or importer’s wholesale price, less the amount of the tax, per thousand:
- If not exceed thirty pesos per thousand: tax is two pesos and thirty centavos per thousand.
- If exceeds thirty pesos but does not exceed sixty pesos per thousand: tax is four pesos and sixty centavos per thousand.
- If exceeds sixty pesos per thousand: tax is seven pesos per thousand.
- For cigarettes, the tax depends on the manufacturer’s or importer’s wholesale price, less the amount of the tax, per thousand:
- If three pesos and fifty centavos or less per thousand: tax is two pesos per thousand.
- If more than three pesos and fifty centavos but not more than four pesos and fifty centavos per thousand: tax is six pesos per thousand.
- If exceeds four pesos and fifty centavos but not more than six pesos per thousand: tax is eight pesos per thousand.
- If exceeds six pesos per thousand: tax is ten pesos per thousand.
- The applicable cigar/cigarette tax rate is determined by the maximum price at which the various classes of cigars and cigarettes are sold at wholesale in the factory or in the establishment of the importer to the public.
- If the manufacturer or importer sells (or allows sale) at wholesale in another establishment owned by him or in which he has an interest, the maximum sale price in that establishment determines the applicable tax rate for cigars and cigarettes sold there.
- If the maximum wholesale price is less than the cost of manufacture or importation plus all expenses incurred until final sale, then cost plus expenses determines the tax amount to be applied.
Filing requirements and sale restriction
- Every manufacturer or importer of cigars and cigarettes must file with the Collector of Internal Revenue a sworn statement.
- The sworn statement must show the maximum wholesale prices of cigars and cigarettes.
- The sworn statement must also include cost of manufacture or importation plus expenses incurred or to be incurred until the cigars or cigarettes are finally sold.
- The filing is required on the date or dates designated by the Collector of Internal Revenue.
- It is unlawful to sell cigars and cigarettes at wholesale at a price in excess of the one specified in the required statement without previous written notice to the Collector of Internal Revenue.