Summary
RMO No. 06-2003 prescribes guidelines and procedures for establishing the current net retail prices of new brands of cigarettes and alcohol products.
Key points
- Purpose of surveys. Surveys validate the suggested net retail price of brands registered and introduced in the market after the prescribed three-month period. They also reclassify new brands of these excisable products introduced after January 1, 1997.
- Products covered and exceptions. New brands include locally manufactured and imported cigarettes, fermented liquors, wines and distilled spirits. Excepted are brands in the highest tax classification or bracket, brands taxed only on volume of removals without regard to selling price, and brands locally registered and manufactured exclusively for export.
- Survey methods. The current net retail price is set by any or a combination of five methods. These are an actual price survey in major supermarkets or retail outlets, an authenticated price list, authenticated information from informers, direct purchase with a valid receipt or invoice, and authenticated photographs showing items and selling prices.
Who is affected
- Manufacturers and importers of new brands of cigarettes, fermented liquors, wines and distilled spirits
Deadlines and effectivity
- Applies to new brands introduced after January 1, 1997
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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