Anda di halaman 1dari 10

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)
c. Non-essential Service (Section 150-A) - RA 10963 [TRAIN Law))
d. Sweetened Beverages (Section 150-B)-(RA 10963 [TRAIN Law])

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

o Local Sale, Barter or Transfer


o
o First buyer, purchaser or transferee
o Exportation
o
o Owner, lessee, concessionaire or operator of the mining claim

TIME OF PAYMENT:

In General

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

EXCISE TAX RATES:

A. ALCOHOL PRODUCTS

NEW TAX RATES based on Republic Act No. 10351 Remarks


PARTICULARS 2018
2013 2014 2015 2016 2017 onwards
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
15% 15% 20% 20% 20% 20%
taxes);
and
Effective 1/1/2016, the specific tax rate
2) SPECIFIC TAX - Per proof liter Php20 Php20 Php20 Php20.80 Php21.63 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:
Php500.00 or less Php250 Php260 Php270.40 Php281.22 Php292.47
More than Php500.00 Php700 Php728 Php757.12 Php787.40 Php818.90
Effective 1/1/2014, the specific tax rate
2) Still wines and carbonated wines containing 14% of alcohol shall be increased by 4% every year
Php30.00 Php31.20 Php32.45 Php33.75 Php35.10
by volume or less thereafter
3) Still wines and carbonated wines containing more than 14%
Php60.00 Php62.40 Php64.90 Php67.50 Php70.20
(of alcohol by volume) but not more 25% of alcohol by volume

4) Fortified wines containing more than 25% of alcohol by


Taxed as distilled spirits
volume
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
Php 50.60 and below Php15.00 Php17.00 Php19.00 Php21.00 Php23.50
thereafter
More than Php 50.60 Php20.00 Php21.00 Php22.00 Php23.00 Php23.50
2) If brewed and sold at microbreweries or small Effective 1/1/2014, the specific tax rate
establishments such as pubs and restaurants, regardless of Php28.00 Php29.12 Php30.28 Php31.50 Php32.76 shall be increased by 4% every year
the NRP 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

NEW TAX RATES based on Republic Act No. 10351


PARTICULARS 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 Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
than the ordinary mode of drying and curing;

(b) Tobacco prepared or partially prepared with or Effective 1/1/2014, the specific tax rate
without the use of any machine or instrument or Php1.75 Php1.82 Php1.89 Php1.97 Php2.05 shall be increased by 4% every year
without being pressed or sweetened; and thereafter

(c) Fine-cut shorts and refuse, scraps, clippings,


cuttings, stems, midribs and sweepings of Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
tobacco;

2. Chewing tobacco unsuitable for use in any other


Php1.50 Php1.56 Php1.62 Php1.68 Php1.75
manner

B. CIGARS, per cigar

3. Cigars
Effective 1/1/2014, the specific tax rate
(a) Based on the NRP per cigar (excluding the
20% 20% 20% 20% 20% shall be increased by 4% every year
excise and value-added taxes), and
thereafter
(b) Per cigar Php5.00 Php5.20 Php5.41 Php5.62 Php5.85

C. CIGARETTES , per pack

PARTICULARS NEW TAX RATES based on RA No. 10963 (TRAIN Law)


January 1, 2020 January 1, 2022
January 1, 2018 until July 1, 2018 until
until December 31, until December January 1, 2024 onwards
June 30, 2018 December 31, 2019
2021 31,2023

1. Cigarettes packed by hand Php32.50 Php35.00 Php37.50 Php40.00

Effective 1/1/2024, the specific tax rate shall be increased by


4% every year thereafter
2. Cigarettes packed by machine Php32.50 Php35.00 Php37.50 Php40.00

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

EFFECTIVITY (RA 10963-TRAIN Law)


PRODUCT TYPE
January 1, 2018 January 1, 2019 January 1, 2020

(a) Lubricating oils and greases, including but not limited to base stock for lube oils and greases, high vacuum Php9.00 Php10.00
distillates, aromatic extracts and other similar preparations, and additives for lubricating oils and greases, whether
such additives are petroleum based or not,per liter and kilogram respectively, of volume capacity or weight
(a.1) Locally produced or imported oils previously taxed but are subsequently reprocessed, re-refined or recycled, per liter and
kilogram of volume capacity or weight.

(b)Processed gas, per liter of volume capacity


Php8.00
(c)Waxes and petrolatum, per kilogram

(d)Denatured alcohol to be used for motive power , per liter of volume capacity

(e)Asphalt, per kilogram

(f)Naphtha, regular gasoline, pyrolysis gasoline and other similar products of distillation, per liter of volume Php9.00 Php10.00
capacity
Php7.00
(g)Unleaded premium gasoline, per liter of volume capacity

(h)Kerosene, per liter of volume capacity Php3.00 Php4.00 Php5.00

(i)Aviation turbo jet fuel,aviation gas, per liter of volume capacity Php4.00 Php4.00 Php4.00

(j)Kerosene when used as aviation fuel, per liter of volume capacity

(k)Diesel fuel oil, and on similar fuel oils having more or less the same generating power, per liter of volume Php4.50 Php6.00
capacity
(l)Liquified petroleum gas used for motive power, per kilogram
Php2.50
(m)Bunker fuel oil, and on similar oils having more or less the same generating power, per liter of volume capacity
(n)Petroleum coke, per metric ton

(o)Liquified petroleum gas, per kilogram Php1.00 Php2.00 Php3.00

(p)Naphtha and pyrolysis gasoline, when used as raw material in the production of petrochemical products or in Php0.00 Php0.00
the refining of petroleum products, or as replacement fuel for natural-gas-fired-combined cycle power plant, in lieu
of lacally-extracted natural gas during the non-availability thereof, per liter of volume capacity
(q)Liquified petroleum gas, when used as raw material in the production of petrochemical products, per kilogram Php0.00
(r)Petroleum coke when used as feedstock to any power generating facility, per metric ton

D. MINERALS AND MINERAL PRODUCTS

PRODUCT TYPE TAX RATES (RA 10963-TRAIN Law)

Coal and coke (Domestic and Imported) January 1, 2018 - Php50.00


January 1, 2019 - Php100.00
January 1, 2020 - Php150.00
and onwards
Nonmetallic Minerals and Quarry Reources (Locally extracted or produced) Four percent (4%) based on the actual market value of the gross output thereof at the time of removal

Nonmetallic Minerals and Quarry Resources (Imported) Four percent (4%) based on the value used by the Bureau of Customs (BOC) in determining
tariff and customs duties, net of excise tax and value-added tax
Locally-extracted natural gas and liquefied natural gas Exempt

All Metallic Minerals (locally extracted or produced copper, gold, chromite and other metallic minerals) Four percent (4%) based on the actual market value of the gross output thereof at the time of removal

Imported copper, gold, chromite and other metallic minerals Four percent (4%) based on the value used by BOC in determining tariff and customs duties, net of
excise tax and value added tax
On indigenous petroleum Six percent (6%) of the fair international market price thereof, on the first taxable sale, barter, exchange or such
similar transaction, such tax to be paid by the buyer or purchaser before removal from the place of production. The
phrase “first taxable sales, barter, exchange or similar transaction’' means the transfer of indigenous petroleum in its
original, state to a first taxable transferee. The fair international market price shall be determined in consultation with
appropriate government agency.

For the purpose of this Subsection, “indigenous petroleum” shall include


locally-extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt. mineral gas and all
other similar or naturally associated substances with the exception of coal, peat, bituminous
shale and/or stratified mineral deposits."
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

NET MANUFACTURER'S PRICE/IMPORTER'S SELLING PRICE TAX RATES (RA 10963 (TRAIN Law)

OVER UP TO RATE

0 Php600,000 4%

Php600,000 Php1,000,000 10%

Php1,100,000 Php4,000,000 20%

Php4,000,000 over 50%


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

G. SWEETENED BEVERAGES (RA 10963-TRAIN Law)

PRODUCT TAX RATE


Per Liter of Volume Capacity
Using purely caloric sweeteners, and purely non-caloric sweeteners, or a mix of caloric and non-caloric sweeteners Php6.00
Using purely high fructose corn syrup or in combination with any caloric or non-caloric sweetener Php12.00
Using purely coconut sap sugar and purely steviol glycosides Exempt

H. INVASIVE COSMETIC PROCEDURES - (RA 10963-TRAIN Law)

SERVICE Tax Rate


Performance of Services on Invasive Cosmetic Procedures 5%