Article 58p. 58

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

Tobacco products imported into the Philippines and

destined for foreign countries shall not be allowed entry

without posting a bond equivalent to the amount of

customs duty, excise and value-added taxes due thereon

if sold domestically.

Manufacturers and importers of tobacco products 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 tobacco

products sold for the three-month period immediately

preceding.

Any manufacturer or importer who, in violation of this

Section, misdeclares or misrepresents hi 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 cigars or cigarettes.

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. 145. Cigars and Cigarettes. - [94]

(A) Cigars. - There shall be levied, assessed and collected

on cigars an excise tax in accordance with the following

schedule:

(1) Effective on January 1, 2013

(a)

An ad valorem tax equivalent to twenty

percent (20%) of the net retail price (excluding

the excise tax and the value-added tax) per

cigar; and

(b)

In addition to the ad valorem tax herein

imposed, a specific tax of Five pesos (P5.00) per

cigar.

(2)

In

addition

to the ad valorem tax herein

imposed, the specific tax rate of Five pesos (P5.00)

imposed under this subsection shall be increased by

four

percent

(4%)

effective

on

January

1,

2014

through revenue regulations issued by the Secretary

of Finance.

(B) Cigarettes Packed by Hand. - There shall be levied,

assessed and collected on cigarettes packed by hand an

excise tax based on the following schedules:

Effective on January 1, 2018 until June 30, 2018,

Thirty-two pesos and fifty centavos (P32.50) per pack;

Effective on July 1, 2018 until December 31, 2019,

Thirty-five pesos (P35.00) per pack;

Effective on January 1, 2020 until December 31, 2021,

Thirty-seven pesos and fifty centavos (P37.50) per

pack; and

Effective on January 1, 2022 until December 31, 2023,

Forty pesos (P40.00) per pack.

The rates of tax imposed under this subsection shall be

increased by four percent (4%) every year effective on

January 1, 2024, through revenue regulations issued by

the Secretary of Finance.

Duly registered cigarettes packed by hand shall only be

packed in twenties and other packaging combinations of

not more than twenty.

'Cigarettes packed by hand' shall refer to the manner of

packaging of cigarette sticks using an individual person's

hands and not through any other means such as a

mechanical device, machine or equipment.

(C) Cigarettes Packed by Machine. — There shall be

levied, assessed and collected on cigarettes packed by

machine a tax at the rates prescribed below:

Effective on January 1, 2018 until June 30, 2018, the

tax on all cigarettes packed by machine shall be

Thirty-two pesos and fifty centavos (P32.50) per pack;

Effective on July 1, 2018 until December 31, 2019, the

tax on all cigarettes packed by machine shall be

Thirty-five pesos (P35.00) per pack;

Effective on January 1, 2020 until December 31, 2021,

the tax on all cigarettes packed by machine shall be

Thirty-seven pesos and fifty centavos (P37.50) per

pack; and

Effective on January 1, 2022 until December 31, 2023,

the tax on all cigarettes packed by machine shall be

Forty pesos (P40.00) per pack.

The rates of tax imposed under this Subsection shall be

increased by four percent (4%) every year thereafter

effective on January 1, 2024, through revenue regulations

issued by the Secretary of Finance.

(as amended by RA No 10963)

SEC. 146. Inspection Fee. - For inspection made in

accordance with this Chapter, there shall be collected a

fee of Fifty centavos (P0.50) for each thousand cigars or

fraction thereof; Ten centavos (P0.10) for each thousand

cigarettes of fraction thereof; Two centavos (P0.02) for

each kilogram of leaf tobacco or fraction thereof; and

Three centavos (P0.03) for each kilogram or fraction

thereof, of scrap and other manufactured tobacco.

The

inspection

fee

on

leaf

tobacco,

scrap,

cigars,

cigarettes and other tobacco products as defined in

Section 147 of this Code shall be paid by the wholesaler,

manufacturer, producer, owner or operator of redrying

plant, as the case may be, immediately before removal

thereof

from

the

establishment

of

the

wholesaler,

manufacturer, owner or operator of the re -drying plant. In

case of imported leaf tobacco and products thereof, the

inspection fee shall be paid by the importer before

removal from customs' custody.

Fifty percent (50%) of the tobacco inspection fee shall

accrue

to

the

Tobacco

Inspection

Fund created by

Section 12 of Act No. 2613, as amended by Act No. 3179,

and fifty percent (50%) shall accrue to the Cultural Center

of the Philippines.

SEC. 147. Definition of Terms. - When used herein and in

statements or official forms prescribed hereunder, the

following terms shall have the meaning indicated:

(a) ' Cigars ' mean all rolls of tobacco or any substitute

thereof, wrapped in leaf tobacco.

(b)

' Cigarettes '

mean all rolls of finely-cut leaf

tobacco, or any substitute therefor, wrapped in

paper or in any other material.

(c) ' Wholesale price ' shall mean the amount of

money

or

price

paid

for

cigars

or

cigarettes

purchased for the purpose of resale, regardless of

quantity.

(d) ' Retail price ' shall mean the amount of money or

price which an ultimate consumer or end-user pays

for cigars or cigarettes purchased.

CHAPTER V EXCISE TAX ON PETROLEUM

PRODUCTS

SEC. 148. Manufactured Oils and Other Fuels. — There

shall be collected on refined and manufactured mineral

oils and motor fuels, the following excise taxes which shall

© Compiled by RGL

58 of 201