Article 55p. 55

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

value-added tax. For distilled spirits which are marketed

outside Metro Manila, the ' net retail price ' shall mean the

price at which the distilled spirits is sold in at least five (5)

major supermarkets in the region excluding the amount

intended to cover the applicable excise tax and the

value-added tax.

Major supermarkets , as contemplated under this Act,

shall be those with the highest annual gross sales in

Metro Manila or the region, as the case may be, as

determined by the National Statistics Office, and shall

exclude retail outlets or kiosks, convenience or sari-sari

stores, and others of a similar nature: Provided, That no

two (2) supermarkets in the list to be surveyed are

affiliated and/or branches of each other: Provided, finally,

That in case a particular distilled spirit is not sold in major

supermarkets, the price survey can be conducted in retail

outlets where said distilled spirit is sold in Metro Manila or

the region, as the case maybe, upon determination of the

Commissioner of the Internal Revenue.

The net retail price shall be determined by the Bureau of

Internal Revenue (BIR) through a price survey under oath.

The methodology and all pertinent documents used in

the conduct of the latest price survey shall be submitted

to

the

Congressional

Oversight

Committee

on

the

Comprehensive

Tax

Reform

Program

created

under

Republic Act No. 8240.

Understatement of the suggested net retail price by as

much as fifteen percent (15%) of the actual net retail price

shall render the manufacturer or importer liable for

additional excise tax equivalent to the tax due and

difference between the understated suggested net retail

price and the actual net retail price.

Distilled spirits introduced in the domestic market after

the effectivity of this Act shall be initially taxed according

to their suggested net retail prices.

' Suggested net retail price ' shall mean the net retail

price at locally manufactured or imported distilled spirits

are intended by the manufacturer or importer to be sold

on retail in major supermarkets or retail outlets in Metro

Manila for those marketed nationwide, and in other

regions, for those with regional markets. At the end of

three (3) months from the product launch, the Bureau of

Internal Revenue shall validate the suggested net retail

price of the new brand against the net retail price as

defined herein and initially determine the correct tax on a

newly introduced distilled spirits. After the end of nine (9)

months from such validation, the Bureau of Internal

Revenue shall revalidate the initially validated net retail

price against the net retail price as of the time of

revalidation in order to finally determine the correct tax

on a newly introduced distilled spirits.

All distilled spirits existing in the market at the time of the

effectivity of this Act shall be taxed according to the tax

rates provided above based on the latest price survey of

the distilled spirits conducted by the Bureau of Internal

Revenue.

The methodology and all pertinent documents used in

the conduct of the latest price survey shall be submitted

to

the

Congressional

Oversight

Committee

on

the

Comprehensive

Tax

Reform

Program

created

under

Republic Act No. 8240.

Manufacturers and importers of distilled spirits shall,

within thirty (30) days from the effectivity of this Act, and

within

the

first

five

(5)

days of every third month

thereafter,

submit

to

the

Commissioner

a

sworn

statement of the volume of sales for each particular

brand of distilled spirits sold at his establishment for the

three-month period immediately preceding.

Any manufacturer or importer who, in violation of this

Section, misdeclares or misrepresents in his or its sworn

statement

herein

required

any

pertinent

data

or

information

shall,

upon

final

findings

by

the

Commissioner that the violation was committed, be

penalized by a summary cancellation or withdrawal of his

or its permit to engage in business as manufacturer or

importer of distilled spirits.

Any corporation, association or partnership liable for any

of the acts or omissions in violation of this Section shall be

fined treble the amount of deficiency taxes, surcharges

and interest which may be assessed pursuant to this

Section.

Any

person

liable for any of the acts or omissions

prohibited under this Section shall be criminally liable

and penalized under Section 254 of this Code. Any person

who wilfully aids or abets in the commission of any such

act or omission shall be criminally liable in the same

manner as the principal.

If the offender is not a citizen of the Philippines, he shall

be deported immediately after serving the sentence,

without further proceedings for deportation.

SEC. 142. Wines. - [91] On wines, there shall be collected

per liter of volume capacity effective on January 1, 2013,

the following excise taxes:

(a) Sparkling wines/champagnes regardless of proof,

if the net retail price per bottle of seven hundred

fifty milliliter (750 ml.) volume capacity (excluding

the excise tax and value-added tax) is:

(1) Five hundred pesos (P500) or less - Two

hundred fifty pesos (P250.00); and

(2) More than Five hundred pesos (P500) -Seven

hundred pesos (P700.00)

(b) Still wines containing and carbonated wines

containing fourteen percent (14%) of alcohol by

volume or less, Thirty pesos (P30.00); and

(c) Still wines and carbonated wines containing

more than fourteen percent (14%) but not more than

twenty-five percent (25%) of alcohol by volume, Sixty

pesos (P60.00).

The rates of tax imposed under this Section shall be

increased by four percent (4%) every year thereafter

effective on January 1, 2014, through revenue regulations

issued by the Secretary of Finance.

Fortified wines containing more than twenty-five percent

of alcohol by volume shall be taxed as distilled spirits.

' Fortified wines ' shall mean natural wines to which

distilled spirits are added to increase their alcoholic

strength.

' Net retail price ', shall mean the price at which sparkling

wine/champagne is sold on retail in at least (5) major

supermarkets in Metro Manila, excluding the amount

intended to cover the applicable excise tax and the

value-added-tax. For sparkling wines/champagnes which

are marketed outside Metro Manila, the ' net retail price '

shall mean the price at which the wine is sold in at least

five (5) major supermarkets in the region excluding the

amount intended to cover the applicable excise tax and

the value-added tax.

Major supermarkets, as contemplated under this Act,

shall be those with the highest annual gross sales in

Metro Manila or the region, as the case may be, as

determined by the National Statistics Office, and shall

exclude retail outlets or kiosks, convenience or sari-sari

stores, and others of a similar nature: Provided, That no

two (2) supermarkets in the list to be surveyed are

affiliated and/or branches of each other: Provided, finally,

that in case a particular sparkling wine/champagne is not

sold in major supermarkets, the price survey can be

conducted

in

retail

outlets

where

said

sparkling

wine/champagne is sold in Metro Manila or the region, as

the

case

maybe

upon

the

determination

of

the

Commissioner of Internal Revenue.

The net retail price shall be determined by the Bureau of

Internal Revenue (BIR) through a price survey under oath.

The methodology and all pertinent documents used in

the conduct of the latest price survey shall be submitted

to

the

Congressional

Oversight

Committee

on

the

© Compiled by RGL

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