Section 42Sec./Art. 42

Section 145 of the NIRC, as amended, is hereby further amended to read as follows:

"Sec. 145. Cigars and Cigarettes -

"(A) Cigars. x x x

"(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 (₱32.50) per pack;

"Effective on July 1, 2018 until December 31, 2019, Thirty-five pesos (₱35.00) per pack;

"Effective on January 1, 2020 until December 31, 2021, Thirty-seven pesos and fifty centavos (₱37.50) per pack; and

"Effective on January 1, 2022 until December 31, 2023, Forty pesos (₱40.00)per pack.1wphi1

"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 persons 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 (₱32.50) per pack;

"Effective on July 1, 2018 until December 31, 2019, the tax on all cigarettes packed by machine shall be Thirty-five pesos (₱35.00) 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 (₱37.50) per pack; and

"Effective on January 1, 2022 until December 31, 2023, the tax on all cigarettes packed by machine shall be Forty pesos (₱40.00) 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."