RR No. 09-2003: Amends certain provisions of RR No. 1-97 and RR No. 2-97 relative to the excise taxation of alcohol products, cigars and cigarettes for the purpose of prescribing the rules and procedures to be observed in the establishment of the current net retail price of new brands and variants of new brands of alcohol and tobacco products

Key points

1. New brands. New brands are classified by current net retail price, set through a survey or another activity specified in the Regulations. Until it is set, the taxpayer’s suggested net retail price determines the specific tax classification.
2. Which price prevails. If the approved current net retail price is higher than the suggested price, it prevails, and otherwise the suggested price prevails. Any deficiency in specific tax is assessed and collected with increments as provided by the Code.
3. Variants. A variant of a new brand is classified by its current net retail price, determined the same way as for a new brand. Its tax classification cannot be lower than the highest classification of the new brand and any existing variant.
4. Older registered brands. For brands registered and introduced beginning January 1, 1997 whose price was not determined in the last two years from effectivity, a determination or re-determination is done immediately upon effectivity of the Regulations.

Who is affected

• Producers of new brands and variants of alcohol and tobacco products
• Producers of brands registered and introduced beginning January 1, 1997

Deadlines and effectivity

• Re-determination for older brands: immediately upon effectivity