Article 63p. 63

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

neotame,

cyclamates

and

other

non-nutritive

sweeteners approved by the Codex Alimentarius and

adopted by the FDA.

(C) Exclusions. — The following products, 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, are excluded from the

scope of this Act:

(1) All milk products, including plain milk, infant

formula

milk,

follow-on

milk,

growing

up

milk,

powdered milk, ready-to-drink milk and flavored milk,

fermented milk, soymilk, and flavored soymilk;

(2) One Hundred Percent (100%) Natural Fruit Juices

— Original liquid resulting from the pressing of fruit,

the liquid resulting from the reconstitution of natural

fruit juice concentrate, or the liquid resulting from

the restoration of water to dehydrated natural fruit

juice

that

do

not

have

added

sugar

or

caloric

sweetener;

(3) One Hundred Percent (100%) Natural Vegetable

Juices — Original liquid resulting from the pressing of

vegetables,

the

liquid

resulting

from

the

reconstitution of natural vegetable juice concentrate,

or the liquid resulting from the restoration of water to

dehydrated natural vegetable juice that do not have

added sugar or caloric sweetener;

(4)

Meal

Replacement

and

Medically

Indicated

Beverages — Any liquid or powder drink/product for

oral

nutritional

therapy

for

persons who cannot

absorb or metabolize dietary nutrients from food or

beverages, or as a source of necessary nutrition used

due to a medical condition and an oral electrolyte

solution

for

infants

and

children

formulated

to

prevent dehydration due to illness; and

(5)

Ground

coffee,

instant

soluble

coffee,

and

pre-packaged powdered coffee products.

(D) Filing of Return and Payment of Excise Tax and

Penalty . —

(1) Filing of Return and Payment of Excise Tax on

Domestic and Imported Sweetened Beverages. —

The provision of Sections 130 and 131 of the NIRC , as

appropriate, shall apply to sweetened beverages.

(2)

Penalty.

—

Upon

final

findings

by

the

Commissioner of Internal Revenue and/or Customs

that any manufacturer or importer, in violation of this

Section, misdeclares or misrepresents in the sworn

statement provided in Section 130(c) of the NIRC , as

amended, any pertinent data or information, the

penalty of summary cancellation or withdrawal of the

permit to engage in business as manufacturer or

importer of sweetened beverages as provided under

Section

268 of the NIRC , as amended, shall be

imposed.

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

the

NIRC ,

as

amended. 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 not a citizen of the Philippines, the offender shall be

deported immediately after serving the sentence without

further proceedings for deportation.

(E)

Specific

Responsibility

of

the Food and Drug

Administration (FDA). — Starting June 1, 2018, the FDA

shall

require

all

manufacturers

and

importers

of

sweetened beverages covered by this Act to indicate on

the label the type of sweetener used, and on sweetened

beverages in powder form to indicate on the label the

equivalent of each serving per liter of volume capacity.

The FDA shall also conduct post-marketing surveillance

of the sweetened beverages on display in supermarkets,

groceries

or

retail

stores

and/or

inspection

of

manufacturing sites to determine compliance with the

requirements of this Section. Violations of the provisions

of this Act, including but not limited to, mislabeling or

misbranding,

shall,

to

the

extent

applicable,

be

punishable under existing laws.

(F) Duty of the Commissioner to Ensure Payment of

Taxes . — It shall be the duty of the Commissioner, among

other things, to prescribe a materially unique, secure and

nonremovable identification, such as codes, stamps or

other markings, to be firmly and conspicuously affixed on

and form part of the label of all excisable sweetened

beverages.

For this purpose, the abovementioned control measure

shall be caused by the Commissioner to be printed with

adequate security features to ensure the payment of

excise tax on sweetened beverages.

(G)

Review

of

Implementation

of

the

Sweetened

Beverage Tax. — At the start of the implementation of

the

sugar

sweetened

beverage

tax

and

every

year

thereafter, the Department of Health, Department of

Science and Technology, and Department of Finance

shall review the impact of these provisions on its health

objectives with the view to making recommendations on

the tax rate on these beverages.

(as amended by RA No 10963)

CHAPTER VII EXCISE TAX ON MINERAL PRODUCTS

SEC. 151. Mineral Products. -

(A) Rates of Tax. - There shall be levied, assessed and

collected

on

minerals,

mineral

products and quarry

resources, excise tax as follows:

(1)

On

domestic

or

imported

coal

and

coke,

notwithstanding any incentives granted in any law

or special law:

Effective January 1, 2018, Fifty pesos (P50.00) per

metric ton;

Effective

January

1,

2019,

One

hundred

pesos

(P100.00) per metric ton; and

Effective January 1, 2020, One hundred fifty pesos

(P150.00) per metric ton.

(2) On all nonmetallic minerals and quarry resources,

a tax of four percent (4%) based on the actual market

value of the gross output thereof at the time of

removal, in the case of those locally extracted or

produced; or the value used by the Bureau of

Customs in determining tariff and customs duties,

net of excise tax and value-added tax in the case of

importation.

(as amended by RA No 10963)

Notwithstanding the provision of paragraph (4) of

Subsection

(A)

of this Section, locally extracted

natural gas and liquefied natural gas shall not be

subject to the excise tax imposed herein.

(3) On all metallic minerals, a tax based on the actual

market value of the gross output thereof at the time

of removal, in the case of those locally extracted or

produced; or the value used by the Bureau of

Customs in determining tariff and customs duties,

net of excise tax and value-added tax, in the case of

importation,

in

accordance

with

the

following

schedule;

(a)

Copper

and other metallic minerals, four

percent (4%); and

(b) Gold and chromite, four percent (4%).

(4) On indigenous petroleum, a tax of six percent

(6%) of the fair international market price thereof, on

the first taxable sale, barter, exchange or such

© Compiled by RGL

63 of 201