RMO No. 20-2020: Creates and modifies the Alphanumeric Tax Code (ATC) for Excise Tax on Tobacco Products, Heated Tobacco Products and Vapor Products pursuant to the implementation of Republic Act Nos. 11346, 11467 and 10351

Key points

1. Cigarettes packed by machine (XT155). The rate is P 45.00 per pack from January 1, 2020, P 50.00 from January 1, 2021, P 55.00 from January 1, 2022 and P 60.00 from January 1, 2023. The legal basis is RA No. 11346.
2. Heated tobacco products (XT160). The rate is P 10.00 per pack from January 1, 2020, P 25.00 from January 27, 2020, P 27.50 from January 1, 2021, P 30.00 from January 1, 2022 and P 32.50 from January 1, 2023. The legal basis is RA Nos. 11346 and 11467.
3. Vapor products. XT165 covers January 1 to 26, 2020 by volume bracket under RA No. 11346. For January 27, 2020 onward, XT170 (nicotine salt) is P 37.00 per milliliter in 2020, rising to P 42.00, P 47.00 and P 52.00 on January 1 of 2021, 2022 and 2023. XT180 (conventional freebase or classic nicotine) is P 45.00 per Ten (10) milliliters in 2020, rising to P 50.00, P 55.00 and P 60.00 on those dates. The legal basis is RA No. 11467.
4. Inspection fees. XT190 for heated tobacco products is P 0.10 per 1000 unit. XT200 for vapor products is P 0.01 per milliliter. The legal basis is RA No. 11346.
5. Modified ATCs. New rates from January 1, 2020 to 2023 apply to tobacco products (XT010), chewing tobacco (XT020), cigars (XT035, XT036) and cigarettes packed by hand (XT040). Examples are P 2.31/kg for XT010 and P 1.97/kg for XT020 in 2020, and P 45.00/pack for XT040 in 2020. Cigars keep the ad valorem 20% NRP/cigar, with specific tax of P 6.57/cigar in 2020.

Who is affected

• Manufacturers and importers of tobacco, heated tobacco and vapor products

Deadlines and effectivity

• Rates effective January 1, 2020 and January 27, 2020
• Step increases on January 1 of 2021, 2022 and 2023