Index for Excise Tax

Concepts of Excise Tax
Excise Tax Rates
Related Revenue Issuances
Codal References


BASIC CONCEPT:

  • Excise Tax is a tax on the production, sale or consumption of a commodity in a country.

APPLICABILITY:

  • On goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition; and
  • On goods imported.

TYPES OF EXCISE TAX:

  • Specific Tax – refers to the excise tax imposed which is based on weight or volume capacity or any other physical unit of measurement
  • Ad Valorem Tax – refers to the excise tax which is based on selling price or other specified value of the goods/articles

MANNER OF COMPUTATION:

  • Specific Tax = No. of Units/other measurements x Specific Tax Rate
  • Ad Valorem Tax = No. of Units/other measurements x Selling Price of any specific value per unit x Ad Valorem Tax Rate

MAJOR CLASSIFICATION OF EXCISABLE ARTICLES AND RELATED CODAL SECTION:

1. Alcohol Products (Sections 141-143)

a. Distilled Spirits (Section 141)
b. Wines (Section 142)
c. Fermented Liquors (Section 143)

2. Tobacco Products (Sections 144-146)

a. Tobacco Products (Section 144)
b. Cigars & Cigarettes (Section 145)
c. Inspection Fee (Section 146)

3. Petroleum Products (Section 148)

4. Miscellaneous Articles (Section 149-150)

a. Automobiles (Section 149)
b. Non-essential Goods (Section 150)

5. Mineral Products (Sections 151)

PERSONS LIABLE TO EXCISE TAX:

In General:

a. On Domestic or Local Articles

      • Manufacturer
      • Producer
      • Owner or person having possession of articles removed from the place of production without the payment of the tax

b. On Imported Articles

      • Importer
      • Owner
      • Person who is found in possession of articles which are exempt from excise taxes other than those legally entitled to exemption

Others:

On Indigenous Petroleum

      • Local Sale, Barter or Transfer
        • First buyer, purchaser or transferee
      • Exportation
        • Owner, lessee, concessionaire or operator of the mining claim

TIME OF PAYMENT:

In General

      • On domestic products
        • Before removal from the place of production
      • On imported products
        • Before release from the customs' custody

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EXCISE TAX RATES:

A. ALCOHOL PRODUCTS

PARTICULARS
NEW TAX RATES based on Republic Act No. 10351
Remarks
2018
onwards
2013
2014
2015
2016
2017
A. DISTILLED SPIRITS, AD VALOREM & SPECIFIC TAX

1) AD VALOREM TAX RATE - Based on the Net Retail Price (NRP) per proof (excluding the excise and value-added taxes);
and

15%
15%
20%
20%
20%
20%
2) SPECIFIC TAX - Per proof liter
Php20
Php20
Php20
Php20.80
Php21.63
Effective 1/1/2016, the specific tax rate shall be increased by 4% every year thereafter
B. WINES, per liter of volume capacity
1) Sparkling wines/ champagnes, where the NRP (excluding the excise and VAT) per bottle of 750ml volume capacity, regardless of proof is:
         
Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter
Php500.00 or less
Php250
Php260
Php270.40
Php281.22
Php292.47
More than Php500.00
Php700
Php728
Php757.12
Php787.40
Php818.90
2) Still wines and carbonated wines containing 14% of alcohol by volume or less
Php30.00
Php31.20
Php32.45
Php33.75
Php35.10
3) Still wines and carbonated wines containing more than 14% (of alcohol by volume) but not more 25% of alcohol by volume
Php60.00
Php62.40
Php64.90
Php67.50
Php70.20
4) Fortified wines containing more than 25% of alcohol by volume
Taxed as distilled spirits
C. FERMENTED LIQUORS , per liter of volume capacity
1) If the NRP (excluding excise and VAT) per liter of volume capacity is:
         
Effective 1/1/2018, the specific tax rate shall be increased by 4% every year thereafter
Php 50.60 and below
Php15.00
Php17.00
Php19.00
Php21.00
Php23.50
More than Php 50.60
Php20.00
Php21.00
Php22.00
Php23.00
Php23.50
2) If brewed and sold at microbreweries or small establishments such as pubs and restaurants, regardless of the NRP
Php28.00
Php29.12
Php30.28
Php31.50
Php32.76
Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter
NOTE:
IN CASE OF FERMENTED LIQUORS AFFECTED BY THE "NO DOWNWARD RECLASSIFICATION " PROVISION, THE 4% INCREASE SHALL APPLY TO THEIR RESPECTIVE APPLICABLE TAX RATES

B. TOBACCO PRODUCTS

PARTICULARS
NEW TAX RATES based on Republic Act No. 10351
Remarks
2018
onwards
2013
2014
2015
2016
2017
A. TOBACCO PRODUCTS, per kilogram
1. Tobacco Products
(a) Tobacco twisted by hand or reduced into a condition to be consumed in any manner other than the ordinary mode of drying and curing;
Php1.75
Php1.82
Php1.89
Php1.97
Php2.05
Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter
(b) Tobacco prepared or partially prepared with or without the use of any machine or instrument or without being pressed or sweetened; and
Php1.75
Php1.82
Php1.89
Php1.97
Php2.05
(c) Fine-cut shorts and refuse, scraps, clippings, cuttings, stems, midribs and sweepings of tobacco;
Php1.75
Php1.82
Php1.89
Php1.97
Php2.05
2. Chewing tobacco unsuitable for use in any other manner
Php1.50
Php1.56
Php1.62
Php1.68
Php1.75
 
B. CIGARS, per cigar
3. Cigars
         
Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter
(a) Based on the NRP per cigar (excluding the excise and value-added taxes), and
20%
20%
20%
20%
20%
(b) Per cigar
Php5.00
Php5.20
Php5.41
Php5.62
Php5.85
C. CIGARETTES , per pack
1. Cigarettes packed by hand
Php12.00
Php15.00
Php18.00
Php21.00
Php30.00
Effective 1/1/2018, the specific tax rate shall be increased by 4% every year thereafter
2. Cigarettes packed by machine, where the NRP (excluding excise and VAT) per pack is:
           
(a) Php11.50 and below
Php12.00
Php17.00
Php21.00
Php25.00
Php30.00
 
(b) More than Php11.50
Php25.00
Php27.00
Php28.00
Php29.00
Php30.00
 

INSPECTION FEE - There shall be collected inspection fees on leaf tobacco, scrap, cigars, Cigarettes and other manufactured tobacco and tobacco products as follows:

PRODUCT TYPE
INSPECTION FEE
(1) Cigars
P 0.50 per thousand pieces or fraction thereof
(2) Cigarettes
P 0.10 per thousand sticks or fraction thereof
(3) Leaf Tobacco
P 0.02 per kilogram or fraction thereof
(4) Scrap and other manufactured tobacco
P 0.03 per kilogram or fraction thereof

C. PETROLEUM PRODUCTS

PRODUCT TYPE
TAX RATES
Lubricating oils and greases, including but not limited to base stock for lube oils and greases, high vacuum distillates, aromatic extracts and other similar preparations, and additives for lubricating oils and greases, whether such additives are petroleum based or not
P 4.50 per liter
Processed gas
P 0.05 per liter
Waxes and petrolatum
P 3.50 per kilogram
Denatured alcohol, if used for motive power [i.e. one hundred eighty (180) proof ninety percent (90%) absolute alcohol]. Provided, that unless otherwise provided by special laws, if the denatured alcohol is mixed with gasoline, the excise tax which has already been paid, only the alcohol content shall be subject to tax
P 0.05 per liter
Naphtha, regular gasoline and other similar products of distillation
P 4.35 per liter
Naphtha used as raw material in the production of petrochemical products or as replacement fuel for natural gas-fired combined cycle power plant, in lieu of locally-extracted natural gas during the non-availability thereof
P 0.00 per liter
Leaded premium gasoline
P 5.35 per liter
Unleaded premium gasoline
P 4.35 per liter
Aviation turbo jet fuel
P 3.67 per liter
Kerosene
P 0.00 per liter
Kerosene used as aviation fuel
P 3.67 per liter
Diesel fuel oil, and on similar fuel oils having more or less the same generating power
P 0.00 per liter
Liquefied Petroleum Gas ; Provided, that if used for motive power, it shall be taxed at the equivalent rate as the Excise Tax on diesel fuel oil
P 0.00 per liter
Asphalt
P 0.56 per kilogram
Bunker fuel oil, and on similar fuel oils having more or less the same generating power
P 0.00 per liter

D. MINERALS AND MINERAL PRODUCTS

PRODUCT TYPE
TAX RATES
On coal and coke
Ten Pesos (P10.00) per metric ton
All mineral and mineral products (non-metallic), quarry resources
Two percent (2%) bases on the actual market value, in the case of those locally-extracted or produced; and, in the case of importation or the value used by the Bureau of Customs in determining tariff and customs duties, net of Excise Tax and Value-Added Tax.
On locally-extracted natural gas and liquefied natural gas
P0.00
On indigenous petroleum
Three percent (3%) of the fair international market price thereof
NOTE:
In the case of mineral concentrates not traded in commodity exchanges in the Philippines or abroad, such as copper concentrate, the actual market value shall be the world price quotations of the refined mineral products content thereof prevailing in the said commodity exchanges, after deducting the smelting, refining and other charges incurred in the process of converting the mineral concentrates into refined metal traded in those commodity exchanges.
 
On minerals and mineral products sold or consigned abroad, the actual cost of ocean freight and insurance shall be deducted from the tax base.

E. AUTOMOBILES AND OTHER MOTOR VEHICLES

OVER
UP TO
RATE
0
P 600,000
2%
P600,000
P 1,100,000
P 12,000 + 20% in excess of P 600,000
P1,100,000
P2,100,000
P112,000+ 40% in excess of P1,100,000
P2,100,000
over
P512,000 + 60% in excess of P2,100,000

F. NON-ESSENTIAL GOODS

    • Twenty percent (20%) based on the wholesale price or the value of importation used by the Bureau of Customs in determining Tariff and Customs Duties, net of Excise and Value-Added taxes

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I. RELATED REVENUE ISSUANCES

A. ALCOHOL PRODUCTS

Further Clarifying the Taxability of Distilled Spirits Provided under Revenue Memorandum Circular No. 3-2013
Clarifying Certain Provisions of Revenue Regulations No. 17-2012 Implementing the Provisions of Republic Act No. 10351 as well as the Provisions of Revenue Memorandum Circular No. 90-2012 Providing the Initial Tax Classifications of Alcohol and Tobacco Products
Revised Tax Rates of Alcohol and Tobacco Products Under Republic Act No. 10351
Prescribing the Implementing Guidelines on the Revised Tax Rates on Alcohol and Tobacco Products Pursuant to the Provisions of Existing Revenue Regulations
RR 2-97
Revenue Regulations Governing Excise Taxation on Distilled Spirits, Wines and Fermented Liquors
Prescribing the Implementing Guidelines on the Revised Tax Rates on Alcohol and Tobacco Products pursuant to the Provisions of Republic Act No. 9334, and Clarifying Certain Provisions of Existing Revenue Regulations Relative Thereto

B. TOBACCO PRODUCTS

Guidelines and Procedures for the Implementation of the Electronic Official Register Book (eORB) System
Prescribing the Use of Electronic Official Register Book for Manufacturers of Tobacco Products and Regulated Raw Materials
Clarifying Certain Provisions of Revenue Regulations No. 17-2012 Implementing the Provisions of Republic Act No. 10351 as well as the Provisions of Revenue Memorandum Circular No. 90-2012 Providing the Initial Tax Classifications of Alcohol and Tobacco Products
Revised Tax Rates of Alcohol and Tobacco Products Under Republic Act No. 10351
Prescribing the Implementing Guidelines on the Revised Tax Rates on Alcohol and Tobacco Products Pursuant to the Provisions of Existing Revenue Regulations
Prescribing the Implementing Guidelines on the Revised Tax Rates on Alcohol and Tobacco Products pursuant to the Provisions of Republic Act No. 9334, and Clarifying Certain Provisions of Existing Revenue Regulations Relative Thereto
RR 1-97
Revenue Regulations Governing the Excise Taxation of Cigars and Cigarettes

C. Petroleum Products

Reiteration and Clarification on the Requirement of Issuance of Withdrawal Certificate for Every Removal of Petroleum or Petroleum Products
Tax Administration Treatment of Petroleum and Petroleum Products Imported into the Philippines Including those Coming in Through Freeport Zones and Economic Zones and Registration of All Storage Tanks, Facilities, Depots and Terminals
Prescribing the Implementing Guidelines on the Taxation and Monitoring of the Raw Materials Used and the Bioethanol-Blended Gasoline (E-Gasoline) Produced under the Fuel Bioethanol Program of the Department of Energy (DOE)
An Act Restructuring the Excise Tax on Petroleum Products, Reclassifying Natural Gas and Liquefied Natural Gas under Non-Metallic Mineral and Quarry Resources and Reducing the Excise Tax on Indigenous Petroleum
RR 13-77
Petroleum Products Regulation

D. Miscellaneous Articles

D.1 automobiles:

Amending the Provisions of Revenue Memorandum Order (RMO) No. 35-2002, as Amended by RMO No. 20-2006 Prescribing the Guidelines and Procedures in the Processing and Issuance of Authority to Release Imported Goods (ATRIG) for Excise Tax Purposes
Amendment to Certain Sections of RMO No. 35-2002
Clarifying Certain Issues Raised Relative to the Implementation of Revenue Regulations No. 25-2003 Governing the Imposition of Excise Tax on Automobiles Pursuant to Republic Act No. 9224
Amended Revenue Regulations Governing the Imposition of Excise Tax on Automobiles pursuant to the Provisions of Republic Act No. 9224, an Act Rationalizing the Excise Tax on Automobiles, Amending for the Purpose the NIRC of 1997, and for Other Purposes
Amending Certain Section of Revenue Regulations No. 14-97, as Amended by Revenue Regulations No. 14-99, Otherwise Known as the Revenue Regulations Governing the Imposition of Excise Tax on Automobiles
Amending Section 2 of Revenue Regulations No. 14-97 Otherwise known as Revenue Regulations Governing the Imposition of Excise Taxes on Automobiles and Other Motor Vehicles
RR 14-97
Revenue Regulations Governing the Imposition of Excise Tax on Automobiles and Other Motor Vehicles

D.2 NON-ESSENTIAL GOODS:

Revised Rules and Regulations Implementing Republic Act No. 8502, Otherwise Known As The “Jewelry Industry Development Act Of 1998”
Green Cross Baby Cologne and All Other Cologne Products
Rules and Regulations Implementing the Tax Incentives Provided under Section 3 (b) and (d) of Republic Act No. 8502 Otherwise known as the “Jewelry Industry Development Act of 1998”
RR 8-84
Cosmetic Products Regulations

E. MINERAL PRODUCTS

Taxation on the Sale to the Bangko Sentral ng Pilipinas of Gold and Other Metallic Mineral Products Extracted or Produced by Small-scale Miners and further Amending Section 2.57.2 (t) of Revenue Regulations No. 2-98, as amended
RR 13-94
Revenue Regulations Governing the Imposition of Excise Tax on Minerals and Mineral Products

F. OTHERS (COMMON ISSUANCES FOR ALL EXCISABLE PRODUCTS)

Guidelines and Procedures for the Processing and Issuance of An Electronic Authority to Release Imported Goods (eATRIG) for Excise Tax Purposes
Transition Procedures for all Electronic Filing and Payment System (eFPS) Filers in Filing Tax Returns Affected by the Revised Tax Rates on Alcohol and Tobacco Products Pursuant to the provisions of Republic Act No. 10351, “An Act Restructuring the Excise Tax on Alcohol and Tobacco Products by Amending Sections 141, 142, 143, 144, 145, 8, 131 and 288 of Republic Act No. 8424, Otherwise Known as the National Internal Revenue Code of 1997, as Amended by republic Act No. 9334, and for Other Purposes
Prescribing Uniform Guidelines and Procedures in the Processing of Various Permits for Excise Tax Purposes
Prescribing the Guidelines and Procedures in the Processing and Issuance of Authority to Release Imported Goods (ATRIG) for Excise and Value-Added Tax Purposes

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II. CODAL REFERENCE:

PARTICULAR
SECTION IN THE NIRC OF 1997,
AS AMENDED
ALCOHOL PRODUCTS
141-143
TOBACCO PRODUCTS
144-147
PETROLEUM PRODUCTS
148
MISCELLANEOUS ARTICLES
149-150
MINERAL PRODUCTS
151

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