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Excise Tax
Revenue Issuances

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You are here: Home Tax Information Excise Tax

Index for Excise Tax

Concepts of Excise Tax

Excise Tax Rates
Related Revenue Issuances
Codal References

Tax Advisories

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)
c. Non-essential Service (Section 150-A) - RA
10963 [TRAIN Law))
d. Sweetened Beverages (Section 150-B)-(RA
10963 [TRAIN Law])

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

First buyer, purchaser or transferee
Exportation
Owner, lessee, concessionaire or operator of the
mining claim

TIME OF PAYMENT:

In General

On domestic products
Before removal from the place of production
On imported products
Before release from the customs' custody

[return to index]

EXCISE TAX RATES:

A. ALCOHOL PRODUCTS

NEW TAX RATES based on Republic Act

Remarks
PARTICULARS No. 10351 2018
onwards
2013 2014 2015 2016 2017

A. DISTILLED SPIRITS, AD VALOREM & SPECIFIC TAX

1) AD
VALOREM TAX
RATE - Based
on the Net
Retail Price
(NRP) per proof
15% 15% 20% 20% 20% 20%
(excluding the
excise and
value-added
taxes);
and

Effective
1/1/2016,
the
specific
2) SPECIFIC tax rate
TAX - Per proof Php20 Php20 Php20 Php20.80 Php21.63 shall be
liter increased
by 4%
every
year
thereafter

B. WINES, per liter of volume capacity

1) Sparkling
wines/
champagnes,
where the NRP
(excluding the
excise and VAT)
per bottle of
750ml volume
capacity,
regardless of
proof is:

Php500.00
or less Php250 Php260 Php270.40 Php281.22 Php292.47

More than
Effective
Php500.00 Php700 Php728 Php757.12 Php787.40 Php818.90
1/1/2014,
the
2) Still wines specific
and carbonated tax rate
wines
Php30.00 Php31.20 Php32.45 Php33.75 Php35.10 shall be
containing 14% increased
of alcohol by by 4%
volume or less every
year
3) Still wines thereafter
and carbonated
wines
containing more
than 14% (of
Php60.00 Php62.40 Php64.90 Php67.50 Php70.20
alcohol by
volume) but not
more 25% of
alcohol by
volume

4) Fortified
wines
containing more
Taxed as distilled spirits
than 25% of
alcohol by
volume

C. FERMENTED LIQUORS , per liter of volume capacity

1) If the NRP
(excluding Effective
excise and VAT) 1/1/2018,
per liter of the
volume capacity specific
is: tax rate
shall be
increased
Php 50.60
Php15.00 Php17.00 Php19.00 Php21.00 Php23.50 by 4%
and below
every
year
More than thereafter
Php20.00 Php21.00 Php22.00 Php23.00 Php23.50
Php 50.60

Effective
2) If brewed and 1/1/2014,
sold at the
microbreweries specific
or small tax rate
establishments Php28.00 Php29.12 Php30.28 Php31.50 Php32.76 shall be
such as pubs increased
and restaurants, by 4%
regardless of every
the NRP 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. 10351 Remarks

PARTICULARS 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
Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
in any
manner
other than
the
ordinary
mode of
drying and
curing;

Effective
(b)
1/1/2014,
Tobacco
the
prepared
specific
or partially
tax rate
prepared
shall be
with or
increased
without the
by 4%
use of any Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
every
machine or
year
instrument
thereafter
or without
being
pressed or
sweetened;
and

(c) Fine-cut
shorts and
refuse,
scraps,
clippings,
cuttings, Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
stems,
midribs
and
sweepings
of tobacco;

2. Chewing
tobacco
unsuitable for Php1.50 Php1.56 Php1.62 Php1.68 Php1.75
use in any other
manner

B. CIGARS, per cigar

3. Cigars

Effective
(a) Based
1/1/2014,
on the
the
NRP per
specific
cigar
tax rate
(excluding 20% 20% 20% 20% 20%
shall be
the excise
increased
and value-
by 4%
added
every
taxes), and
year
thereafter
(b) Per
Php5.00 Php5.20 Php5.41 Php5.62 Php5.85
cigar

C. CIGARETTES , per pack

NEW TAX RATES based on RA No. 10963 (TRAIN

Law)
PARTICULARS January January January
July 1,
1, 2018 1, 2020 1, 2022
2018 until January 1, 2024
until until until
December onwards
June 30, December December
31, 2019
2018 31, 2021 31,2023

1. Cigarettes
Php32.50 Php35.00 Php37.50 Php40.00
packed by hand

Effective 1/1/2024,
the specific tax rate
shall be increased by
2. Cigarettes 4% every year
packed by Php37.50 Php40.00 thereafter
Php32.50 Php35.00
machine

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 P 0.03 per kilogram or

manufactured tobacco fraction thereof

C. PETROLEUM PRODUCTS

EFFECTIVITY (RA 10963-TRAIN Law)

PRODUCT
TYPE January January 1, January 1,
1, 2018 2019 2020

(a) Lubricating Php9.00 Php10.00

oils and
greases,
including but
not limited to
base stock for
lube oils and
greases, high Php8.00
vacuum
distillates,
aromatic
extracts and
other similar
preparations,
and additives
for lubricating
oils and
greases,
whether such
additives are
petroleum
based or
not,per liter
and kilogram
respectively, of
volume
capacity or
weight

(a.1) Locally
produced or
imported oils
previously taxed
but are
subsequently
reprocessed, re-
refined or
recycled, per liter
and kilogram of
volume capacity
or weight.

(b)Processed
gas, per liter of
volume
capacity

(c)Waxes and
petrolatum, per
kilogram

(d)Denatured
alcohol to be
used for motive
power , per
liter of volume
capacity

(e)Asphalt, per
kilogram

(f)Naphtha, Php9.00 Php10.00

regular
gasoline, Php7.00
pyrolysis
gasoline and
other similar
products of
distillation, per
liter of volume
capacity

(g)Unleaded
premium
gasoline, per
liter of volume
capacity

(h)Kerosene, Php3.00 Php4.00 Php5.00

per liter of
volume
capacity

(i)Aviation turbo Php4.00 Php4.00 Php4.00

jet fuel,aviation
gas, per liter of
volume
capacity

(j)Kerosene
when used as
aviation fuel,
per liter of
volume
capacity

(k)Diesel fuel Php4.50 Php6.00

oil, and on
similar fuel oils
having more or
less the same Php2.50
generating
power, per liter
of volume
capacity

(l)Liquified
petroleum gas
used for motive
power, per
kilogram

(m)Bunker fuel
oil, and on
similar oils
having more or
less the same
generating
power, per liter
of volume
capacity

(n)Petroleum
coke, per
metric ton

(o)Liquified Php1.00 Php2.00 Php3.00

petroleum gas,
per kilogram

(p)Naphtha and Php0.00 Php0.00

pyrolysis
gasoline, when
used as raw
material in the Php0.00
production of
petrochemical
products or in
the refining of
petroleum
products, or as
replacement
fuel for natural-
gas-fired-
combined
cycle power
plant, in lieu of
lacally-
extracted
natural gas
during the non-
availability
thereof, per
liter of volume
capacity

(q)Liquified
petroleum gas,
when used as
raw material in
the production
of
petrochemical
products, per
kilogram

(r)Petroleum
coke when
used as
feedstock to
any power
generating
facility, per
metric ton

D. MINERALS AND MINERAL PRODUCTS

PRODUCT TYPE TAX RATES (RA 10963-

TRAIN Law)

Coal and coke (Domestic January 1, 2018 - Php50.00

and Imported) January 1, 2019 -
Php100.00
January 1, 2020 -
Php150.00
and onwards

Nonmetallic Minerals and Four percent (4%) based

Quarry Reources (Locally on the actual market value
extracted or produced) of the gross output thereof
at the time of removal

Nonmetallic Minerals and Four percent (4%) based

Quarry Resources on the value used by the
(Imported) Bureau of Customs
(BOC) in determining
tariff and customs duties,
net of excise tax and
value-added tax

Locally-extracted natural Exempt

gas and liquefied natural
gas

All Metallic Minerals (locally Four percent (4%) based

extracted or produced on the actual market value
copper, gold, chromite and of the gross output thereof
other metallic minerals) at the time of removal

Imported copper, gold, Four percent (4%) based

chromite and other metallic on the value used by BOC
minerals in determining tariff and
customs duties, net of
excise tax and value added
tax

On indigenous petroleum Six percent (6%) of the fair

international market price
thereof, on the first taxable
sale, barter, exchange or
such similar transaction,
such tax to be paid by the
buyer or purchaser before
removal from the place of
production. The phrase “first
taxable sales, barter,
exchange or similar
transaction’' means the
transfer of indigenous
petroleum in its original,
state to a first taxable
transferee. The fair
international market price
shall be determined in
consultation with
appropriate government
agency.

For the purpose of

this Subsection,
“indigenous petroleum”
shall include locally-
extracted mineral oil,
hydrocarbon gas,
bitumen, crude asphalt.
mineral gas and all other
similar or naturally
associated substances
with the exception of
coal, peat, bituminous
shale and/or stratified
mineral deposits."

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

NET MANUFACTURER'S TAX RATES (RA

PRICE/IMPORTER'S SELLING 10963 (TRAIN Law)
PRICE

OVER UP TO RATE

0 Php600,000 4%

Php600,000 Php1,000,000 10%

Php1,100,000 Php4,000,000 20%

Php4,000,000 over 50%

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

G. SWEETENED BEVERAGES (RA 10963-TRAIN Law)

PRODUCT TAX RATE

Per Liter of
Volume
Capacity

Using purely caloric sweeteners, and purely Php6.00

non-caloric sweeteners, or a mix of caloric
and non-caloric sweeteners

Using purely high fructose corn syrup or in Php12.00

combination with any caloric or non-caloric
sweetener

Using purely coconut sap sugar and purely Exempt

steviol glycosides

H. INVASIVE COSMETIC PROCEDURES - (RA 10963-

TRAIN Law)

SERVICE Tax Rate

Performance of Services on Invasive 5%

Cosmetic Procedures

[return to index]

REVENUE ISSUANCES ON EXCISE TAXES

A. ALCOHOLPRODUCTS

RMO No. Implements the centralized processing of

1-2016 Authority to Release Imported Goods
(ATRIG) for excisable products

RMO NO. Guidelines and procedures for the

14-2014 Processing and Issuance of An Electronic
Authority to Release Imported Goods
(eATRIG) for Excise Tax Purposes

RMC NO. Further Clarifying the Taxability of Distilled

18-2013 Spirits Provided under Revenue
Memorandum Circular No. 3-2013

RMC NO. Transition Procedures for all Electronic

10-2013 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

RMC NO. Clarifying Certain Provisions of Revenue

3-2013 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 NO. Revised Tax Rates of Alcohol and Tobacco

90-2012 Products Under Republic Act No. 10351

RR NO. Prescribing the Implementing Guidelines on

17-2012 the Revised Tax Rates on Alcohol and
Tobacco Products Pursuant to the
Provisions of Existing Revenue Regulations

RMC NO. Clarifying Certain Provisions of Revenue

26-2006 Regulations (RR) No. 3- 2006, More
Particularly on the Printing Requirements of
Section 23 thereof.

RR NO. 3- Prescribing the Implementing Guidelines on

2006 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

RMO NO. Prescribing Uniform Guidelines and

38-2003 Procedures in the Processing of Various
Permits for Excise Tax Purposes

RMO NO. Prescribing the Guidelines and procedures