Article 62p. 62

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

purely electric vehicles and pick-ups shall be exempt

from excise tax on automobiles.

As used in this Section —

(a) Automobile shall mean any four (4) or more

wheeled motor vehicle regardless of seating capacity,

which is propelled by gasoline, diesel, electricity or

any other motive power: Provided , That for purposes

of

this

Act,

buses,

trucks,

cargo

vans,

jeepneys/jeepney substitutes, single cab chassis, and

special-purpose vehicles shall not be considered as

automobiles.

(b) Truck/cargo van shall mean a motor vehicle of

any configuration that is exclusively designed for the

carriage of goods and with any number of wheels

and axles: Provided , That pick-ups shall be considered

as trucks.

(c)

Jeepney/jeepney

substitutes

shall

mean

as

'Philippine jeep or jeepney' which are of the jitney

type locally designed and manufactured generally

from surplus parts and components. It shall also

include jeepney substitutes that are manufactured

from brand-new single cab chassis or cowl chassis

and locally customized rear body that has continuous

sideway row seats with open rear door and without

retractable glass windows.

(d)

Bus

shall

mean

a

motor

vehicle

of

any

configuration with gross vehicle weight of 4.0 tons or

more with any number of wheels and axles, which is

generally accepted and specially designed for mass

or public transportation.

(e) Single cab chassis shall mean a motor vehicle

with

complete

engine

power

train

and

chassis

equipped with a cab that has a maximum of two (2)

doors and only one (1) row of seats.

(f) Special purpose vehicle shall mean a motor

vehicle designed for specific applications such as

cement mixer, fire truck, boom truck, ambulance

and/or medical unit, and off-road vehicles for heavy

industries and not for recreational activities.

(g)

Hybrid

electric vehicle shall mean a motor

vehicle powered by electric energy, with or without

provision for off-vehicle charging, in combination with

gasoline, diesel or any other motive power: Provided,

That, for purposes of this Act, a hybrid electric vehicle

must

be able to propel itself from a stationary

condition using solely electric motor.

Provided , That in the case of imported automobiles not

for sale, the tax imposed herein shall be based on the

total landed value, including transaction value, customs

duty and all other charges.

Automobiles used exclusively within the freeport zone

shall be exempt from excise tax.

(as amended by RA No 10963)

SEC. 150. Non-essential Goods. - There shall be levied,

assessed and collected a tax equivalent to 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 tax

and value-added tax, of the following goods:

(a) All goods commonly or commercially known as

jewelry, whether real or imitation, pearls, precious

and semi-precious stones and imitations thereof;

goods made of, or ornamented, mounted or fitted

with, precious metals or imitations thereof or ivory

(not

including

surgical

and

dental instruments,

silver-plated

wares,

frames

or

mountings

for

spectacles or eyeglasses, and dental gold or gold

alloys and other precious metals used in filling,

mounting or fitting the teeth); opera glasses and

lorgnettes. The term ' precious metals ' shall include

platinum, gold, silver and other metals of similar or

greater value. The term ' imitations thereof ' shall

include platings and alloys of such metals;

(b) Perfumes and toilet waters;

(c) Yachts and other vessels intended for pleasure or

sports.

SEC. 150-A. Non-essential Services. — There shall be

levied, assessed, and collected a tax equivalent to five

percent (5%) based on the gross receipts derived from the

performance

of

services,

net

of

excise

tax

and

value-added

tax,

on

invasive

cosmetic

procedures,

surgeries,

and

body

enhancements

directed

solely

towards improving, altering, or enhancing the patient's

appearance and do not meaningfully promote the proper

function of the body or prevent or treat illness or disease:

Provided, That this tax shall not apply to procedures

necessary to ameliorate a deformity arising from, or

directly related to, a congenital or developmental defect

or

abnormality,

a

personal

injury resulting from an

accident or trauma, or disfiguring disease, tumor, virus or

infection:

Provided,

finally,

That cases or treatments

covered by the National Health Insurance Program shall

not be subject to this tax. (as amended by RA No 10963)

SEC. 150-B. Sweetened Beverages. —

(A) Rate and Base of Tax. — Effective January 1, 2018:

(1) A tax of Six pesos (P6.00) per liter of volume

capacity shall be levied, assessed, and collected on

sweetened

beverages

using

purely

caloric

sweeteners, and purely non-caloric sweeteners, or a

mix of caloric and non-caloric sweeteners: Provided ,

That this tax rate shall not apply to sweetened

beverages using high fructose corn syrup: Provided,

further,

That

sweetened

beverages

using

purely

coconut sap sugar and purely steviol glycosides shall

be exempt from this tax; and

(2) A tax of Twelve pesos (P12.00) per liter of volume

capacity shall be levied, assessed, and collected on

sweetened beverages using purely high fructose corn

syrup

or

in

combination

with

any

caloric

or

non-caloric sweetener.

(B) Definition of Terms. — As used in this Act:

(1) Sweetened beverages (SBs) refer to non-alcoholic

beverages of any constitution (liquid, powder, or

concentrates) that are pre-packaged and sealed in

accordance with the Food and Drug Administration

(FDA)

standards,

that

contain

caloric

and/or

non-caloric sweeteners added by the manufacturers,

and shall include, but not be limited to the following,

as described in the Food Category System from

Codex

Alimentarius

Food

Category

Descriptors

(Codex Stan 192-1995, Rev. 2017 or the latest) as

adopted by the FDA:

(a) Sweetened juice drinks;

(b) Sweetened tea;

(c) All carbonated beverages;

(d) Flavored water;

(e) Energy and sports drinks;

(f) Other powdered drinks not classified as milk,

juice, tea, and coffee;

(g) Cereal and grain beverages; and

(h) Other non-alcoholic beverages that contain

added sugar.

(2) Caloric sweetener refers to a substance that is

sweet and includes sucrose, fructose, and glucose

that produces a certain sweetness;

(3) High fructose corn syrup refers to a sweet

saccharide mixture containing fructose and glucose

which is derived from corn and added to provide

sweetness to beverages, and which includes other

similar fructose syrup preparations; and

(4) Non-caloric sweetener refers to a substance that

are artificially or chemically processed that produces

a certain sweetness. These are substances which can

be directly added to beverages, such as aspartame,

sucralose,

saccharin,

acesulfame

potassium,

© Compiled by RGL

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