Excise Tax on Distilled Spirits, Wines, Fermented Liquors

Alcohol Products: Distilled spirits, wines, fermented liquors as defined under the amended Tax Code.
Duly Registered Brands: Existing or active brands registered before January 1, 1997.
Fortified Wines: Natural wines with added distilled spirits to increase alcohol strength.
Fermented Liquor: Includes beer, ale, porter, draft beer, etc.
Gauge Liter (G.L.): Actual volume of liquor in liters.
Medicinal Preparations: Preparations mainly containing distilled spirits, taxed accordingly.
Net Retail Price: Price excluding excise and VAT at which alcohol products are sold retail.
New Brands: Brands registered after January 1, 1997, or previously inactive.
Proof Liter (P.L.): One liter of proof spirits, with proof spirits defined by alcohol content and specific gravity.
Removal from Place of Production: Removal from distillery or brewery premises.
Sparkling Wine and Still Wine: Defined by carbonation process and alcohol content.
Spirits: Ethyl alcohol and mixtures thereof from any source including whisky, gin, rum.
Variant of Brand: Brands with modifiers or similar logos to existing brands.
Volume of Sales: Quantity removed from production or customs.

Distilled Spirits:
- From nipa, coconut, etc.: P8.00 per proof liter; P4.00 per proof liter for small distillers using pot stills.
- From other raw materials: Tax based on net retail price tiers (P75, P150, P300 per proof liter).
- Medicinal preparations taxed proportionally based on strength.
Wines:
- Sparkling wines taxed at P100 or P300 per liter depending on net retail price.
- Still wines taxed at P12 or P24 depending on alcohol content.
- Fortified wines taxed as distilled spirits.
Fermented Liquor:
- Tax rates vary by net retail price per liter (P6.15, P9.15, P12.15).
- Micro-breweries taxed at P12.15 per liter.
Rates increased by 12% from January 1, 2000.

Existing Brands:
- Tax based on average net retail price as of October 1, 1996.
- Includes specific examples of brands with package sizes, proof, retail price, and tax rates.
New Brands:
- Tax based on current or suggested net retail price.
- Survey conducted after three months to confirm current retail price.
- Higher price between suggested or current used to determine tax.
Variants of Existing Brands:
- Taxed under highest classification of any variant.

Detailed stepwise computation examples for:
- Distilled spirits from various sources.
- Wines (sparkling, still, fortified).
- Fermented liquors comparing ad valorem tax and specific tax.
Adjustment for new brands based on market price surveys.

Definitions and distinction between micro-brewery and micro-brew pub.
Required documents include written application, plat and plan, business permits, surety bond, etc.
Requirement for non-resettable metering devices to monitor sales volumes.
Calibration and daily monitoring of brewing/storage equipment.

Only distilled spirits and wines require official internal revenue labels.
Two types: Regular Official Labels and Auxiliary Official Labels.
Regular Labels: Contain specific data such as serial numbers, tax receipt number, proof percentage.
Auxiliary Labels: Affixed to bottles or immediate containers, include serial number and tax paid indication.

Local manufacturers must apply through Revenue District Office.
Importers must file surety bond and import permit to obtain labels.
Importers responsible for delivering auxiliary labels to suppliers/manufacturers abroad.
Arrival of shipment monitored and supervised for label affixture and tax payment.

Domestic production subject to existing requirements plus labeling for tax-and-duty-free sales.
Exports require permits, bonds, and export-specific labeling.
Importation requires registration, application with detailed info (supplier, volume, price, etc.), bonds, and compliance with labeling and tax payment.

Locally produced alcohol:
- Excise tax returns filed before removal, excise tax paid prior to removal or possession.
- Option for advance payment or deposit schemes.
- Returns and payments made to accredited banks or collection agents.
Importation:
- Specific tax paid before approval of import permit.
- Returns filed with RDO of importer’s head office.

Manufacturers and importers of new brands must file sworn statements including suggested retail prices.
Brewers and importers of fermented liquors must submit monthly sworn statements of volume of sales.

Untaxed or smuggled alcohol subject to confiscation, forfeiture, and destruction.

BIR to conduct physical inventories of alcohol products and labels before January 1, 1997.
Tax paid stock allowed first-out upon implementation.
Reports and reconciliations required to address discrepancies.

Misdeclaration or misrepresentation may result in cancellation of business permits.
Corporations liable to fines triple the amount of deficiency taxes.
Criminal liability per tax code Section 253 for prohibited acts.
Aiding and abetting punished equally.
Non-citizen offenders subject to immediate deportation after serving sentence.

All inconsistent regulations, rulings, or orders are revoked or modified accordingly.