Summary
RMC No. 112-2023 clarifies the role of the Food and Drug Administration (FDA) in classifying beverages for the Excise Tax under Section 150-B of the NIRC of 1997, as amended, and RR No. 20-2018.
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Key points
- Limited FDA function. For Excise Tax on sweetened beverages, the FDA’s function is limited to adopting the relevant version of the Codex Alimentarius Food Category Descriptors (Codex Stan 192-1995) and, at best, determining the proper beverage classification. Its determination must strictly follow the parameters of the version it has adopted.
- BIR review. The FDA’s classification is not absolute, final and conclusive, and the BIR may review it. The Bureau reserves the right to classify products for taxation purposes if the FDA fails to strictly follow the applicable Codex Descriptors.
- Commissioner decides. Whether a beverage is subject to Excise Tax or covered by exclusions rests with the Commissioner of Internal Revenue.
Who is affected
- Producers and importers of sweetened beverages
- Food and Drug Administration
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.