Article 56p. 56

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

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.

Sparkling wines/champagnes introduced in the domestic

market after the effectivity of this Act shall be initially tax

classified according to their suggested net retail prices.

' Suggested net retail price ' shall mean the net retail

price

at

which

locally

manufactured

or

imported

sparkling

wines/champagnes

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 sparkling

wine /champagne against the net retail price as defined

herein and initially determine the correct tax bracket to

which a newly introduced sparkling wine/champagne

shall be classified. After the end of nine (9) months from

such validation, the Bureau of Internal Revenue shall

revalidate the initially validated net retail price against as

of the time of revalidation in order to finally determine

the correct tax bracket to which a newly introduced

sparkling wine/champagne shall be classified.

The

proper

tax

classification

of

sparkling

wines/champagnes, whether registered before or after

the effectivity of this Act, shall be determined every two

(2) years from the date of effectivity of this Act.

All sparkling wines/champagnes existing in the market at

the time of the effectivity of this Act shall be classified

according to the net retail prices and the tax rates

provided above based on the latest price survey of the

sparkling wines/champagnes 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 wines shall, within thirty

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

first five (5) days of every month thereafter, submit to the

Commissioner a sworn statement of the volume of sales

for

each

particular

brand

of

wines

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 wines.

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 willfully 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. 143. Fermented Liquor. - [92] There shall be levied,

assessed and collected an excise tax on beer, lager beer,

ale, porter and other fermented liquors except tuba, basi,

tapuy

and

similar

domestic

fermented

liquors

in

accordance with the following schedule:

Effective on January 1, 2013

(a) If the net retail price (excluding the excise

tax and the value-added tax) per liter of volume

capacity

is

Fifty

pesos

and

sixty

centavos

(P50.60) or less, the tax shall be Fifteen pesos

(P15.00) per liter; and

(b) If the net retail price (excluding the excise

tax and the value-added tax) per liter of volume

capacity is more than Fifty pesos and sixty

centavos (P50.60), the tax shall be Twenty pesos

(P20.00) per liter.

Effective on January 1, 2014

(a) If the net retail price (excluding the excise

tax and the value-added tax) per liter of volume

capacity

is

Fifty

pesos

and

sixty

centavos

(P50.60) or less, the tax shall be Seventeen

pesos (P17.00) per liter; and

(b) If the net retail price (excluding the excise

tax and the value-added tax) per liter of volume

capacity is more than Fifty pesos and sixty

centavos (P50.60), the tax shall be Twenty-one

pesos (P21.00) per liter.

Effective on January 1, 2015

(a) If the net retail price (excluding the excise

tax and the value-added tax) per liter of volume

capacity

is

Fifty

pesos

and

sixty

centavos

(P50.60) or less, the tax shall be Nineteen pesos

(P19.00) per liter; and

(b) If the net retail price (excluding the excise

tax and the value-added tax) per liter of volume

capacity is more than Fifty pesos and sixty

centavos (P50.60), the tax shall be Twenty-two

pesos (P22.00) per liter.

Effective on January 1, 2016

(a) If the net retail price (excluding the excise

tax and the value-added tax) per liter of volume

capacity

is

Fifty

pesos

and

sixty

centavos

(P50.60) or less, the tax shall be Twenty-one

pesos (P21.00) per liter; and

(b) If the net retail price (excluding the excise

tax and the value-added tax) per liter of volume

capacity is more than Fifty pesos and sixty

centavos (P50.60), the tax shall be Twenty-three

pesos (P23.00) per liter.

Effective on January 1, 2017, the tax on all fermented

liquors shall be Twenty-three pesos and fifty centavos

(P23.50) per liter.

The rates of tax imposed under this Section shall be

increased by four percent (4%) every year thereafter

effective on January 1, 2018, through revenue regulations

issued by the Secretary of Finance. However, in case of

fermented

liquors

affected

by

the

' no

downward

reclassification ' provision prescribed under this Section,

the

four

percent

(4%)

increase

shall

apply

to their

respective applicable tax rates.

Fermented

liquors

which

are

brewed

and

sold

at

micro-breweries or small establishments such as pubs

and

restaurants

shall

be

subject

to

the

rate

of

Twenty-eight pesos (P28.00) per liter effective on January

1, 2013: Provided, That this rate shall be increased by four

percent (4%) every year thereafter effective on January 1,

2014,

through

revenue

regulations

issued

by

the

Secretary of Finance.

Fermented liquors introduced in the domestic market

after

the effectivity of this Act shall be initially tax

classified according to their suggested net retail prices.

' Suggested net retail price ' shall mean the net retail

price

at

which

locally

manufactured

or

imported

fermented liquor are intended by the manufacturer or

© Compiled by RGL

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