Law Summary
Authority and Legal Basis for Price Adjustment
- Issued under the President's powers pursuant to Section 290-B of the National Internal Revenue Code (NIRC), as amended.
- Directs amendment of Section 149(b) of the NIRC specifically related to cigarette taxation and retail price regulation.
Taxation and Pricing Structure on Cigarettes (Section 149(b) Amendments)
- Cigarettes taxed based on pack size and retail price per pack.
- Specific tax rates delineated per thousand cigarettes depending on pack size (thirty or twenty) and price brackets:
- Packs of 30 cigarettes range from 3 pesos to 8 pesos per thousand based on price tiers.
- Packs of 20 cigarettes have a graduated tax from 20 pesos to 121 pesos per thousand depending on retail price tiers.
- Foreign manufactured cigarettes taxed at a flat rate of 121 pesos per thousand, regardless of retail price or pack content.
Transition Period for Compliance with New Price Labels (Section 2)
- Manufacturers may continue using old cigarette labels with previous maximum retail prices for 120 days post-effectivity.
- After 120 days, manufacturers must comply strictly with the new labeling requirements per amended Section 149(b) of the NIRC.
Repeal and Modification of Inconsistent Laws (Section 3)
- All prior laws, decrees, executive orders, rules, regulations, or other issuances inconsistent with this Order are repealed, amended, or modified accordingly.
Effective Date of the Executive Order (Section 4)
- The provisions outlined take effect starting June 7, 1984.
This Executive Order ensures legislative alignment of cigarette taxation and pricing policies with economic realities to safeguard industry stability, employment, and government revenue collection.