Law Summary
Excise Tax on Wines
- Taxes based on type and alcohol content per liter:
- Sparkling wines: PHP 26.00 per liter.
- Still wines with alcohol content up to 14%: PHP 3.00 per liter.
- Still wines with alcohol content above 14%: PHP 8.00 per liter.
- Fortified wines with more than 25% alcohol by volume are taxed as distilled spirits.
- Defines fortified wines as natural wines with added distilled spirits to increase alcohol content.
Excise Tax on Fermented Liquor
- Applies an ad valorem tax based on brewer's wholesale price:
- 50% upon effectivity of the Act.
- Increased to 60% six months after effectivity.
- Covers beer, lager beer, ale, porter, and other fermented liquors except traditional domestic liquors (tuba, basi, tapuy).
- Minimum combined tax (ad valorem plus VAT) is PHP 1.00 per 320 ml regular bottle.
Excise Tax on Cigars and Cigarettes
- Cigarettes packed in twenties:
- Local cigarettes bearing foreign brands taxed at 55% of manufacturer’s registered wholesale price.
- Other locally manufactured cigarettes taxed at 45%.
- If retail price including tax does not exceed PHP 4.00, tax rate reduced to 20%.
- Registered brands in twenties packaging cannot be packed in thirties.
- Imported cigarettes taxed at 65% ad valorem on importer’s wholesale price, reduced to 55% starting July 1, 1990.
- Manufacturer’s or importer’s registered wholesale price includes excise tax and VAT.
Implementation and Administrative Provisions
- The Secretary of Finance shall, upon commissioner recommendation, promulgate rules to implement the Act effectively.
- The Act takes effect fifteen days after publication in a newspaper of general circulation, except for provisions otherwise stated.