Article 57p. 57

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

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 newly introduced

fermented liquor against the net retail price as defined

herein and initially determine the correct tax bracket to

which a newly introduced fermented liquor, as defined

above, 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 the net retail price as of the time of revalidation in

order to finally determine the correct tax bracket which a

newly introduced fermented liquor shall be classified.

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

fermented liquor is sold on retail in at least five (5) major

supermarkets in Metro Manila (for brands of fermented

liquor

marketed

nationally),

excluding

the

amount

intended to cover the applicable excise tax and the

value-added tax. For brands which are marketed outside

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

which the fermented liquor 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 fermented liquor is not sold in

major supermarkets, the price survey can be conducted

in retail outlets where said fermented liquor is sold in

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

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.

Any downward reclassification of present categories, for

tax purposes, of fermented liquors duly registered at the

time of the effectivity of this Act which will reduce the tax

imposed

herein,

or

the

payment

thereof,

shall

be

prohibited.

The

proper

tax

classification

of

fermented

liquors,

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 fermented liquors 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 fermented liquors

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.

Every brewer or importer of fermented liquor 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 fermented liquor sold at

his

establishment

for

the

three-month

period

immediately preceding.

Any brewer 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 brewer or importer

of fermented liquor.

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.

CHAPTER IV EXCISE TAX ON TOBACCO PRODUCTS

SEC. 144. Tobacco Products. - [93] There shall be collected

an excise tax of One peso and seventy-five centavos

(P1.75) effective on January 1, 2013 on each kilogram of the

following products of tobacco:

(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;

(b) Tobacco prepared or partially prepared with or

without the use of any machine or instruments or

without

being pressed or sweetened except as

otherwise provided hereunder; and

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

cuttings, stems and sweepings of tobacco except as

otherwise provided hereunder.

Stemmed leaf tobacco, tobacco prepared or partially

prepared with or without the use of any machine or

instrument

or

without being pressed or sweetened,

fine-cut shorts and refuse, scraps, clippings, cuttings,

stems, midribs, and sweepings of tobacco resulting from

the handling or stripping of whole leaf tobacco shall be

transferred, disposed of, or otherwise sold, without any

prepayment of the excise tax herein provided for, if the

same are to be exported or to be used in the manufacture

of cigars, cigarettes, or other tobacco products on which

the excise tax will eventually be paid on the finished

product, under such conditions as may be prescribed in

the rules and regulations promulgated by the Secretary

of Finance, upon recommendation of the Commissioner.

On tobacco specially prepared for chewing so as to be

unsuitable for use in any other manner, on each kilogram,

One peso and fifty centavos (P1.50) effective on January 1,

2013.

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.

No tobacco products manufactured in the Philippines

and produced for export shall be removed from their

place of manufacture or exported without posting of an

export bond equivalent to the amount of the excise tax

due thereon if sold domestically: Provided, however, That

tobacco products for export may be transferred from the

place of manufacture to a bonded facility, upon posting of

a transfer bond, prior to export.

© Compiled by RGL

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