IMPLEMENTING SECTIONS 141, 142, 143 AND 145 (A) AND (C) (1), (2), (3) AND (4) OF THE NATIONAL INTERNAL REVENUE CODE OF 1997 RELATIVE TO THE INCREASE OF THE EXCISE TAX ON DISTILL…

National Administrative Register [ BIR REGULATIONS NO. 17-99, December 16, 1999 ]



Pursuant to Section 244 in relation to Sections 141, 142, 143 and
145 of the National Internal Revenue Code of 1997, these Regulations are
hereby promulgated to implement the twelve percent (12%) increase of
the excise tax on distilled spirits, wines, fermented liquors and cigars
and cigarettes packed by machine by January 1, 2000.

SECTION 1.       New Rates of Specific Tax . The specific
tax rates imposed under the following sections are hereby increased by
twelve percent (12%) and the new rates to be levied, assessed, and
collected are as follows:

SECTION

DESCRIPTION OF ARTICLES

PRESENT SPECIFIC TAX RATES (Prior to January 1, 2000 )

NEW SPECIFIC TAX RATES ( Effective January 1, 2000

 

141

DISTILLED SPIRITS

 

 

 

 

 

a. 1. If produced from sap of nipa, coconut
cassava, camote or buri palm or from the juice, syrup or sugar of the
cane, provided such materials are produced commercially in the in the
countries where they are processed

P8.00/proof liter

P8.96/proof liter

 

a.2. If produced in Pot Still by small
distiller or other similar primary distilling apparatus of a distiller
producing not more than 100 liters a day containing not more than fifty
percent (50%) alcohol by volume

P4.00/proof liter

P4.48/proof liter

 

b. If produced from raw materials other than above

 

 

 

(1) Net Retail Price per bottle of 750 ml. volume capacity (excluding VAT & Excise) is less than P250.00

P75.00/proof liter

P84.0/proof liter

 

(2) Net Retail Price per bottle of 750 ml/ volume capacity (excluding VAT & Excise) is P250.00 up to P675.00

P150.00/proof liter

P168.00/proof liter

 

(3) Net Retail Price per bottle of 750 ml. volume capacity (excluding VAT & Excise) is more than P675.00

P300.00/proof liter

P336.00/proof

 

 

 

142

WINES

 

 

 

 

 

 

a. Sparkling wines/champagne regardless of proof

 

 

 

(1) Net Retail Price per bottle (excluding VAT & Excise) is P500.00 or less

P100.00/liter

P112.00/liter

 

(2) Net Retail Price per bottle (excluding VAT & Excise) is more than P500.00

P300.00/liter

P336.00/liter

 

b. Still Wines containing 14% of alcohol by volume or less

P12.00/liter

P13.44/liter

 

c. Still Wines containing more than 14% but not more than 25% of alcohol by volume

P24.00/liter

P26.88/liter

 

 

 

 

143

FERMENTED LIQUORS

 

 

 

 

 

 

 

a. Net Retail price per liter (excluding VAT & excise) is less than P14.50

P6.15/liter

P6.89/liter

 

b. Net Retail price per liter (excluding VAT & Excise) is P14.50 up to P22.00

P12.15/liter

P10.25/liter

 

c. Net Retail Price per liter (excluding VAT &Excise) is more than P22.00

P12.15/liter

P13.61/liter

 

 

 

 

145

CIGAR AND CIGARTTES

 

 

 

 

 

 

 

a. Cigars

P1.00/cigar

P1.12/cigar

 

b. Cigarettes Packed by Machine

 

 

 

(1) Net Retail Price (excluding VAT & Excise) exceeds P10.00 per pack

P12.00/pack

P13.44/pack

 

(2) Net Retail Price (excluding Vat & Excise) is P6.51 up to P10.00 per pack

P8.00/pack

P8.96/pack

 

(3) Net Retail Price (excluding VAT & Excise) is P5.00 to P6.50 per pack

P5.00/pack

P5.60.pack

 

(4) Net Retail Price (excluding VAT & Excise) is below P5.00 per pack

P1.00/pack

P1.12/pack

Provided, however, that the new specific tax rate for any existing
brand of cigars, cigarettes packed by machine, distilled spirits, wines
and fermented liquors shall not be lower than the excise tax that is
actually being paid prior to January 1, 2000.

SECTION 2.       Illustrations.

I.          New specific tax rate per pack is lower than the
specific tax that is actually being paid prior to January 1, 2000.

FLS CORPORATION, a manufacturer will remove 1,000 cases of “MAA
Cigarettes” from its place of production. Each case contains 500 packs
of cigarettes. Prior to January 1, 2000, the actual specific tax being
paid is P3.30 per pack and the specific tax rate is classified under the
tax bracket of P1.00 per pack. The excise tax due shall be computed as
follows:

Computation:

Actual specific tax being paid prior to January 1, 2000             P3.30/pack
Specific tax prescribed under Sec. 145(c)(4)                           P1.00/pack
New Specific Tax Rate (P1.00 x 112%)                                 P1.12

Note: Inasmuch as the prescribed specific tax
due per pack is lower than the actual specific tax currently being paid,
the latter shall apply. Thus,

Volume of removals ( 1,000 cases x 500 packs)                   500,000 packs
Multiplied by actual specific tax being paid                            P3.30     

Excise Tax Due                                                              P1,650,000

II.          New specific tax rate per pack is higher than the actual specific tax rate currently being paid.

A manufacturer will remove 1,000 cases of “JAA Cigarettes” his place
of production. Each case contains 500 packs of cigarettes. Prior to
January 1, 2000, the actual specific tax being paid is P5.50 and the
specific tax rate is classified under the P5.00 tax class bracket. The
excise tax due shall be computed as follows:

Computation:

Actual specific tax being paid prior to January 1, 2000             P5.50/pack
Specific tax prescribed under Sec. 145(c)(3)                           P5.00/pack
New Specific Tax Rate (P5.00 x 112%)                                 P5.60/pack

Volume of removals (1,000 cases x 500 packs)                    500,000 packs
Multiplied by the new specific tax rate per pack                     P5.60

Excise Tax Due                                                                   P2,800,000

SECTION 3.       Transitory Provisions . For the effective
implementation of these regulations, the following guidelines shall be
followed during the transitory period:

1.  The BIR shall conduct a physical inventory of all finished
products for all brands of distilled spirits, wines, fermented liquors,
cigars and cigarettes on January 1, 2000 in the presence of authorized
representative of the concerned manufacturer who shall jointly attest to
the fact of witnessing and verifying the results thereof by affixing
their signatures on the attestation clause in the inventory certificate.

2.  Every manufacturer, producer and importer of distilled spirits,
wines, fermented liquors, cigars, and cigarettes packed by machine shall
submit a duly notarized updated list of existing registered brands
indicating the following: net wholesale price per case, Excise Tax, VAT
and suggested retail price (excluding VAT and Excise Tax), within ten
(10) days from the date of effectivity of these regulations.

SECTION 4.       Repealing Clause. All existing rules and
regulations or parts thereof which are inconsistent with the provisions
of these regulations are hereby revoked.

SECTION 5.       Effectivity. These regulations shall take effect on January 1, 2000.

Adopted: 16 Dec. 1999

(SGD.) EDGARDO B. ESPIRITU
Secretary of Finance

Recommending Approval:

(SGD.) BEETHOVEN L. RUALO
Commissioner of Internal Revenue