Summary
RMC No. 03-2013 clarifies RR No. 17-2012 (implementing RA No. 10351) and RMC No. 90-2012 on the excise tax classification of alcohol and tobacco products.
Key points
- Tobacco rate table lines disregarded. The 4% increase effective January 1, 2014 under Section 144 (a) applies to all tobacco products, including chewing tobacco. The stray line in the “2018 Onwards” column of the Section 3 table of RR No. 17-2012 is disregarded.
- Cigarettes packed by hand or machine. The 4% increase effective January 1, 2018 under Section 144 (b) and (c) covers both hand-packed and machine-packed cigarettes. The inadvertently placed line between them in the same table is likewise disregarded, and it is not a substantial defect in RR No. 17-2012.
- Ethyl alcohol and ethanol. These end-products are distilled spirits separate and distinct from alcoholic products such as whisky, brandy and rum. They carry a separate Excise Tax under Section 141 of the Tax Code of 1997.
- Gold Eagle Beer correction. The 320 ml. bottle in RMC No. 90-2012 was wrongly placed under the NRP above P 50.60 category at P 20.00. The reflected P 56.25 per liter was a gross selling price, and the net retail price of P 39.81 per liter puts it at P 15.00 per liter.
- Products not listed in the Annexes. Their initial classification follows the suggested NRP declared in the latest sworn statement of the manufacturer or importer.
Who is affected
- Manufacturers and importers of alcohol and tobacco products
Deadlines and effectivity
- RA No. 10351 tobacco increase: January 1, 2014
- Cigarette increase: January 1, 2018
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.