BASIC CONCEPT:

Excise Tax is a tax on the production, sale

or consumption of a commodity in a
country.
APPLICABILITY:

 On goods manufactured or produced in the Philippines for domestic sale or

consumption or for any other disposition; and
 On goods imported.

TYPES OF EXCISE TAX:

 Specific Tax – refers to the excise tax imposed which is based on weight or volume
capacity or any other physical unit of measurement
 Ad Valorem Tax – refers to the excise tax which is based on selling price or other
specified value of the goods/articles

MANNER OF COMPUTATION:

 Specific Tax = No. of Units/other measurements x Specific Tax Rate

 Ad Valorem Tax = No. of Units/other measurements x Selling Price of any specific
value per unit x Ad Valorem Tax Rate

MAJOR CLASSIFICATION OF EXCISABLE ARTICLES AND RELATED CODAL

SECTION:

1. Alcohol Products (Sections 141-143)

a. Distilled Spirits (Section 141)

b. Wines (Section 142)
c. Fermented Liquors (Section 143)

2. Tobacco Products (Sections 144-146)

a. Tobacco Products (Section 144)

b. Cigars & Cigarettes (Section 145)
c. Inspection Fee (Section 146)

3. Petroleum Products (Section 148)

 4. Miscellaneous Articles (Section 149-150)

a. Automobiles (Section 149)

b. Non-essential Goods (Section 150)

5. Mineral Products (Sections 151)

PERSONS LIABLE TO EXCISE TAX:

In General:

a. On Domestic or Local Articles



 Manufacturer
 Producer
 Owner or person having possession of articles removed from the place
of production without the payment of the tax

b. On Imported Articles



 Importer
 Owner
 Person who is found in possession of articles which are exempt from
excise taxes other than those legally entitled to exemption

Others:

On Indigenous Petroleum



 Local Sale, Barter or Transfer
o
o First buyer, purchaser or transferee
 Exportation
o
o Owner, lessee, concessionaire or operator of the mining claim

TIME OF PAYMENT:

In General
 o

 On domestic products
o
o
Before removal from the place of production
 On imported products
o
o Before release from the customs' custody

[return to index]

EXCISE TAX RATES:

A. ALCOHOL PRODUCTS

NEW TAX RATES based on Republic Act No. 10351 Remarks

PARTICULARS 2018
2013 2014 2015 2016 2017 onwards
A. DISTILLED SPIRITS, AD VALOREM & SPECIFIC TAX
1) AD VALOREM TAX
RATE - Based on the
Net Retail Price (NRP)
per proof (excluding the 15% 15% 20% 20% 20% 20%
excise and value-added
taxes);
and
Effective
1/1/2016,
the specific
tax rate
2) SPECIFIC TAX - Per
Php20 Php20 Php20 Php20.80 Php21.63 shall be
proof liter
increased
by 4%
every year
thereafter
B. WINES, per liter of volume capacity
1) Sparkling wines/ Effective
champagnes, where the 1/1/2014,
NRP (excluding the the specific
excise and VAT) per tax rate
bottle of 750ml volume shall be
capacity, regardless of increased
proof is: by 4%
Php500.00 or less Php250 Php260 Php270.40 Php281.22 Php292.47 every year
thereafter
More than Php500.00 Php700 Php728 Php757.12 Php787.40 Php818.90
2) Still wines and
carbonated wines
containing 14% of Php30.00 Php31.20 Php32.45 Php33.75 Php35.10
alcohol by volume or
less
3) Still wines and
carbonated wines
containing more than
14% (of alcohol by Php60.00 Php62.40 Php64.90 Php67.50 Php70.20
volume) but not more
25% of alcohol by
volume
4) Fortified wines
containing more than
Taxed as distilled spirits
25% of alcohol by
volume
C. FERMENTED LIQUORS , per liter of volume capacity
1) If the NRP (excluding Effective
excise and VAT) per liter 1/1/2018,
of volume capacity is: the specific
tax rate
Php 50.60 and below Php15.00 Php17.00 Php19.00 Php21.00 Php23.50
shall be
increased
by 4%
every year
More than Php 50.60 Php20.00 Php21.00 Php22.00 Php23.00 Php23.50 thereafter
Effective
1/1/2014,
2) If brewed and sold at the specific
microbreweries or small tax rate
establishments such as Php28.00 Php29.12 Php30.28 Php31.50 Php32.76 shall be
pubs and restaurants, increased
regardless of the NRP by 4%
every year
thereafter
NOTE:
IN CASE OF FERMENTED LIQUORS AFFECTED BY THE "NO DOWNWARD
RECLASSIFICATION " PROVISION, THE 4% INCREASE SHALL APPLY TO THEIR
RESPECTIVE APPLICABLE TAX RATES
B. TOBACCO PRODUCTS

NEW TAX RATES based on Republic Act No. Remarks

PARTICULARS 10351 2018
2013 2014 2015 2016 2017 onwards
A. TOBACCO PRODUCTS, per kilogram
1. Tobacco Products
(a) Tobacco twisted by
hand or reduced into a
condition to be consumed in
Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
any manner other than the
ordinary mode of drying Effective
and curing;
1/1/2014, the
(b) Tobacco prepared or specific tax
partially prepared with or rate shall be
without the use of any increased by
Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
machine or instrument or 4% every
without being pressed or year
sweetened; and thereafter
(c) Fine-cut shorts and
refuse, scraps, clippings,
Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
cuttings, stems, midribs and
sweepings of tobacco;
2. Chewing tobacco
unsuitable for use in any Php1.50 Php1.56 Php1.62 Php1.68 Php1.75
other manner
B. CIGARS, per cigar
3. Cigars Effective
1/1/2014, the
(a) Based on the NRP per
specific tax
cigar (excluding the excise 20% 20% 20% 20% 20%
rate shall be
and value-added taxes), and
increased by
4% every
(b) Per cigar Php5.00 Php5.20 Php5.41 Php5.62 Php5.85 year
thereafter
C. CIGARETTES , per pack
Effective
1/1/2018, the
1. Cigarettes packed by
Php12.00 Php15.00 Php18.00 Php21.00 Php30.00 specific tax
hand
rate shall be
increased by
 4% every
year
thereafter
2. Cigarettes packed by
machine, where the NRP
(excluding excise and
VAT) per pack is:
(a) Php11.50 and below Php12.00 Php17.00 Php21.00 Php25.00 Php30.00
(b) More than Php11.50 Php25.00 Php27.00 Php28.00 Php29.00 Php30.00

INSPECTION FEE - There shall be collected inspection fees on leaf tobacco, scrap, cigars,
Cigarettes and other manufactured tobacco and tobacco products as follows:

PRODUCT TYPE INSPECTION FEE

(1) Cigars P 0.50 per thousand pieces or fraction thereof
(2) Cigarettes P 0.10 per thousand sticks or fraction thereof
(3) Leaf Tobacco P 0.02 per kilogram or fraction thereof
(4) Scrap and other manufactured tobacco P 0.03 per kilogram or fraction thereof

C. PETROLEUM PRODUCTS

PRODUCT TYPE TAX RATES

Lubricating oils and greases, including but not limited to base P 4.50 per liter
stock for lube oils and greases, high vacuum distillates,
aromatic extracts and other similar preparations, and additives
for lubricating oils and greases, whether such additives are
petroleum based or not
Processed gas P 0.05 per liter
Waxes and petrolatum P 3.50 per kilogram
Denatured alcohol, if used for motive power [i.e. one hundred P 0.05 per liter
eighty (180) proof ninety percent (90%) absolute alcohol].
Provided, that unless otherwise provided by special laws, if the
denatured alcohol is mixed with gasoline, the excise tax which
has already been paid, only the alcohol content shall be subject
to tax
Naphtha, regular gasoline and other similar products of P 4.35 per liter
distillation
Naphtha used as raw material in the production of P 0.00 per liter
petrochemical products or as replacement fuel for natural gas-
fired combined cycle power plant, in lieu of locally-extracted
natural gas during the non-availability thereof
Leaded premium gasoline P 5.35 per liter
Unleaded premium gasoline P 4.35 per liter
Aviation turbo jet fuel P 3.67 per liter
Kerosene P 0.00 per liter
Kerosene used as aviation fuel P 3.67 per liter
Diesel fuel oil, and on similar fuel oils having more or less the P 0.00 per liter
same generating power
Liquefied Petroleum Gas ; Provided, that if used for motive P 0.00 per liter
power, it shall be taxed at the equivalent rate as the Excise Tax
on diesel fuel oil
Asphalt P 0.56 per kilogram
Bunker fuel oil, and on similar fuel oils having more or less the P 0.00 per liter
same generating power

D. MINERALS AND MINERAL PRODUCTS

PRODUCT TYPE TAX RATES

On coal and coke Ten Pesos (P10.00) per metric ton
All mineral and mineral products (non-metallic), Two percent (2%) bases on the actual
quarry resources market value, in the case of those locally-
extracted or produced; and, in the case of
importation or the value used by the Bureau
of Customs in determining tariff and
customs duties, net of Excise Tax and
Value-Added Tax.
On locally-extracted natural gas and liquefied P0.00
natural gas
On indigenous petroleum Three percent (3%) of the fair international
market price thereof
NOTE:
In the case of mineral concentrates not traded in commodity exchanges in the Philippines or
abroad, such as copper concentrate, the actual market value shall be the world price quotations of
the refined mineral products content thereof prevailing in the said commodity exchanges, after
deducting the smelting, refining and other charges incurred in the process of converting the
mineral concentrates into refined metal traded in those commodity exchanges.

On minerals and mineral products sold or consigned abroad, the actual cost of ocean freight and
insurance shall be deducted from the tax base.

E. AUTOMOBILES AND OTHER MOTOR VEHICLES

OVER UP TO RATE
0 P 600,000 2%
P600,000 P 1,100,000 P 12,000 + 20% in excess of P 600,000
P1,100,000 P2,100,000 P112,000+ 40% in excess of P1,100,000
P2,100,000 over P512,000 + 60% in excess of P2,100,000

F. NON-ESSENTIAL GOODS


 Twenty percent (20%) based on the wholesale price or the value of
importation used by the Bureau of Customs in determining Tariff and
Customs Duties, net of Excise and Value-Added taxes

[return to index]

I. RELATED REVENUE ISSUANCES

A. ALCOHOL PRODUCTS

RMC 18-2013 Further Clarifying the Taxability of Distilled Spirits Provided under Revenue
Memorandum Circular No. 3-2013
RMC 3-2013 Clarifying Certain Provisions of Revenue Regulations No. 17-2012
Implementing the Provisions of Republic Act No. 10351 as well as the
Provisions of Revenue Memorandum Circular No. 90-2012 Providing the Initial
Tax Classifications of Alcohol and Tobacco Products
RMC 90-2012 Revised Tax Rates of Alcohol and Tobacco Products Under Republic Act No.
10351
RR 17-2012 Prescribing the Implementing Guidelines on the Revised Tax Rates on Alcohol
and Tobacco Products Pursuant to the Provisions of Existing Revenue
Regulations
RR 2-97 Revenue Regulations Governing Excise Taxation on Distilled Spirits, Wines and
Fermented Liquors
RR 3-2006 Prescribing the Implementing Guidelines on the Revised Tax Rates on Alcohol
and Tobacco Products pursuant to the Provisions of Republic Act No. 9334, and
Clarifying Certain Provisions of Existing Revenue Regulations Relative Thereto
B. TOBACCO PRODUCTS

RMO 23-2013 Guidelines and Procedures for the Implementation of the Electronic Official
Register Book (eORB) System
RR 3-2013 Prescribing the Use of Electronic Official Register Book for Manufacturers of
Tobacco Products and Regulated Raw Materials
RMC 3-2013 Clarifying Certain Provisions of Revenue Regulations No. 17-2012
Implementing the Provisions of Republic Act No. 10351 as well as the
Provisions of Revenue Memorandum Circular No. 90-2012 Providing the Initial
Tax Classifications of Alcohol and Tobacco Products
RMC 90-2012 Revised Tax Rates of Alcohol and Tobacco Products Under Republic Act No.
10351
RR 17-2012 Prescribing the Implementing Guidelines on the Revised Tax Rates on Alcohol
and Tobacco Products Pursuant to the Provisions of Existing Revenue
Regulations
RR 3-2006 Prescribing the Implementing Guidelines on the Revised Tax Rates on Alcohol
and Tobacco Products pursuant to the Provisions of Republic Act No. 9334, and
Clarifying Certain Provisions of Existing Revenue Regulations Relative Thereto
RR 1-97 Revenue Regulations Governing the Excise Taxation of Cigars and Cigarettes

C. Petroleum Products

RMC 50-2014 Reiteration and Clarification on the Requirement of Issuance of Withdrawal

Certificate for Every Removal of Petroleum or Petroleum Products
RR 2-2012 Tax Administration Treatment of Petroleum and Petroleum Products Imported
into the Philippines Including those Coming in Through Freeport Zones and
Economic Zones and Registration of All Storage Tanks, Facilities, Depots and
Terminals
RR 8-2006 Prescribing the Implementing Guidelines on the Taxation and Monitoring of the
Raw Materials Used and the Bioethanol-Blended Gasoline (E-Gasoline)
Produced under the Fuel Bioethanol Program of the Department of Energy
(DOE)
RR 8-96 An Act Restructuring the Excise Tax on Petroleum Products, Reclassifying
Natural Gas and Liquefied Natural Gas under Non-Metallic Mineral and Quarry
Resources and Reducing the Excise Tax on Indigenous Petroleum
RR 13-77 Petroleum Products Regulation

D. Miscellaneous Articles

D.1 automobiles:
RMO 21-2013 Amending the Provisions of Revenue Memorandum Order (RMO) No. 35-2002,
as Amended by RMO No. 20-2006 Prescribing the Guidelines and Procedures in
the Processing and Issuance of Authority to Release Imported Goods (ATRIG)
for Excise Tax Purposes
RMO 20-2006 Amendment to Certain Sections of RMO No. 35-2002
RMC 60-2003 Clarifying Certain Issues Raised Relative to the Implementation of Revenue
Regulations No. 25-2003 Governing the Imposition of Excise Tax on
Automobiles Pursuant to Republic Act No. 9224
RR 25-2003 Amended Revenue Regulations Governing the Imposition of Excise Tax on
Automobiles pursuant to the Provisions of Republic Act No. 9224, an Act
Rationalizing the Excise Tax on Automobiles, Amending for the Purpose the
NIRC of 1997, and for Other Purposes
RR 4-2003 Amending Certain Section of Revenue Regulations No. 14-97, as Amended by
Revenue Regulations No. 14-99, Otherwise Known as the Revenue Regulations
Governing the Imposition of Excise Tax on Automobiles
RR 14-99 Amending Section 2 of Revenue Regulations No. 14-97 Otherwise known as
Revenue Regulations Governing the Imposition of Excise Taxes on Automobiles
and Other Motor Vehicles
RR 14-97 Revenue Regulations Governing the Imposition of Excise Tax on Automobiles
and Other Motor Vehicles

D.2 NON-ESSENTIAL GOODS:

RMC 33-2004 Revised Rules and Regulations Implementing Republic Act No. 8502, Otherwise
Known As The “Jewelry Industry Development Act Of 1998”
RMC 17-2002 Green Cross Baby Cologne and All Other Cologne Products
RR 1-99 Rules and Regulations Implementing the Tax Incentives Provided under Section
3 (b) and (d) of Republic Act No. 8502 Otherwise known as the “Jewelry
Industry Development Act of 1998”
RR 8-84 Cosmetic Products Regulations

E. MINERAL PRODUCTS

RR 7-2008 Taxation on the Sale to the Bangko Sentral ng Pilipinas of Gold and Other Metallic
Mineral Products Extracted or Produced by Small-scale Miners and further
Amending Section 2.57.2 (t) of Revenue Regulations No. 2-98, as amended
RR 13-94 Revenue Regulations Governing the Imposition of Excise Tax on Minerals and
Mineral Products

F. OTHERS (COMMON ISSUANCES FOR ALL EXCISABLE PRODUCTS)

RMO 14-2014 Guidelines and Procedures for the Processing and Issuance of An Electronic
Authority to Release Imported Goods (eATRIG) for Excise Tax Purposes
RMC 10-2013 Transition Procedures for all Electronic Filing and Payment System (eFPS)
Filers in Filing Tax Returns Affected by the Revised Tax Rates on Alcohol and
Tobacco Products Pursuant to the provisions of Republic Act No. 10351, “An
Act Restructuring the Excise Tax on Alcohol and Tobacco Products by
Amending Sections 141, 142, 143, 144, 145, 8, 131 and 288 of Republic Act No.
8424, Otherwise Known as the National Internal Revenue Code of 1997, as
Amended by republic Act No. 9334, and for Other Purposes
RMO 38-2003 Prescribing Uniform Guidelines and Procedures in the Processing of Various
Permits for Excise Tax Purposes
RMO 35-2002 Prescribing the Guidelines and Procedures in the Processing and Issuance of
Authority to Release Imported Goods (ATRIG) for Excise and Value-Added Tax
Purposes

II. CODAL REFERENCE:

SECTION IN THE NIRC OF 1997,

PARTICULAR
AS AMENDED
ALCOHOL PRODUCTS 141-143
TOBACCO PRODUCTS 144-147
PETROLEUM PRODUCTS 148
MISCELLANEOUS ARTICLES 149-150
MINERAL PRODUCTS 151

]
 TRAIN LAW (EXCISE TAX)

MEMBERS:
RESSA MAY R. ACA-AC

MECHELLE A. CHAVEZ

SHENNA MAY E. JACOT

RAQUEL CAINOY

JESSA MAE CAIMAHAN