Title Vi

TITLE VI of such products for the period from January 1, 1998 to June 30, 1998; within five
(5) days from the date of removal of such products for the period from July 1, 1998
EXCISE TAXES ON CERTAIN GOODS [4] to December 31, 1998; and, before removal from the place of production of such
products from January 1, 1999 and thereafter: Provided, further, That the excise tax
CHAPTER I on nonmetallic mineral or mineral products, or quarry resources shall be due and
payable upon removal of such products from the locality where mined or extracted,
but with respect to the excise tax on locally produced or extracted metallic mineral or
GENERAL PROVISIONS mineral products, the person liable shall file a return and pay the tax within fifteen
(15) days after the end of the calendar quarter when such products were removed
SEC.129. Goods and Services Subject to Excise Taxes. - Excise taxes apply to subject to such conditions as may be prescribed by rules and regulations to be
goods manufactured or produced in the Philippines for domestic sales or promulgated by the Secretary of Finance, upon recommendation of the
consumption or for any other disposition and to things imported as well as services Commissioner. For this purpose, the taxpayer shall file a bond in an amount which
performed in the Philippines.[127] The excise tax imposed herein shall be in addition approximates the amount of excise tax due on the removals for the said quarter. The
to the value-added tax imposed under Title IV. foregoing rules notwithstanding, for imported mineral or mineral products, whether
metallic or nonmetallic, the excise tax due thereon shall be paid before their removal
For purposes of this Title, excise taxes herein imposed and based on weight or from customs custody.
volume capacity or any other physical unit of measurement shall be referred to as
'specific tax' and an excise tax herein imposed and based on selling price or other (3) Place of Filing of Return and Payment of the Tax. - Except as the
specified value of the good or service performed [127] shall be referred to as 'ad Commissioner otherwise permits, the return shall be filed with and the tax paid to
valorem tax.' any authorized agent bank or Revenue Collection Officer, or duly authorized City or
Municipal Treasurer in the Philippines.
SEC. 130. Filing of Return and Payment of Excise Tax on Domestic Products. –
(4) Exceptions. - The Secretary of Finance, upon recommendation of the
(A) Persons Liable to File a Return, Filing of Return on Removal and Payment of Commissioner may, by rules and regulations, prescribe:
Tax. -
(a) The time for filing the return at intervals other than the time prescribed in the
(1) Persons Liable to File a Return.- Every person liable to pay excise tax imposed preceding paragraphs for a particular class or classes of taxpayers after considering
under this Title shall file a separate return for each place of production setting forth, factors such as volume of removals, adequate measures of security and such other
among others the description and quantity or volume of products to be removed, the relevant information required to be submitted under the pertinent provisions of this
applicable tax base and the amount of tax due thereon: Provided, however, That in Code; and
the case of indigenous petroleum, natural gas or liquefied natural gas, the excise tax
shall be paid by the first buyer, purchaser or transferee for local sale, barter or (b) The manner and time of payment of excise taxes other than as herein prescribed,
transfer, while the excise tax on exported products shall be paid by the owner, lessee, under a tax prepayment, advance deposit or similar schemes. In the case of locally
concessionaire or operator of the mining claim. produced of extracted minerals and mineral products or quarry resources where the
mine site or place of extraction is not the same as the place of processing or
Should domestic products be removed from the place of production without the production, the return shall be filed with and the tax paid to the Revenue District
payment of the tax, the owner or person having possession thereof shall be liable for Office having jurisdiction over the locality where the same are mined, extracted or
the tax due thereon. quarried: Provided, however, That for metallic minerals processed abroad, the return
shall be filed and the tax due thereon paid to the Revenue District Office having
(2) Time for Filing of Return and Payment of the Tax. - Unless otherwise jurisdiction over the locality where the same are mined, extracted or quarried.
specifically allowed, the return shall be filed and the excise tax paid by the
manufacturer or producer before removal of domestic products from place of (B) Determination of Gross Selling Price of Goods Subject to Ad Valorem Tax. -
production: Provided, That the excise tax on locally manufactured petroleum Unless otherwise provided, the price, excluding the value-added tax, at which the
products and indigenous petroleum levied under Sections 148 and 151(A)(4), goods are sold at wholesale in the place of production or through their sales agents to
respectively, of this Title shall be paid within ten (10) days from the date of removal the public shall constitute the gross selling price. If the manufacturer also sells or
allows such goods to be sold at wholesale in another establishment of which he is the Economic Zone and Freeport, created under Republic Act No. 7922; and the
owner or in the profits of which he has an interest, the wholesale price in such Zamboanga City Special Economic Zone, created under Republic Act No. 7903,and
establishment shall constitute the gross selling price. Should such price be less than such other freeports as may hereafter be established or created by law: Provided,
the cost of manufacture plus expenses incurred until the goods are finally sold, then a further, That nothwithstanding the provisions of Republic Act Nos. 9400 and 9593,
proportionate margin of profit, not less than ten percent (10%) of such manufacturing importations of cigars and cigarettes, distilled spirits, fermented liquors and wines
cost and expenses, shall be added to constitute the gross selling price. made directly by a government-owned and operated duty-free shop, like the Duty-
Free Philippines (DFP), shall be exempted from all applicable duties only: Provided,
(C) Manufacturer's or Producer's Sworn Statement. - Every manufacturer or still further, That such articles directly imported by a government-owned and
producer of goods or products subject to excise taxes shall file with the operated duty-free shop like the Duty-Free Philippines, shall be labeled ‘duty-free’
Commissioner on the date or dates designated by the latter, and as often as may be and ‘not for resale’: Provided, finally, That the removal and transfer of tax and duty-
required, a sworn statement showing, among other information, the different goods free goods, products, machinery, equipment and other similar articles other than
or products manufactured or produced and their corresponding gross selling price or cigars and cigarettes, distilled spirits, fermented liquors and wines, from one freeport
market value, together with the cost of manufacture or production plus expenses to another freeport, shall not be deemed an introduction into the Philippine customs
incurred or to be incurred until the goods or products are finally sold. territory. [89]
(D) Credit for Excise tax on Goods Actually Exported. - When goods locally Cigars and cigarettes, distilled spirits and wines within the premises of all duty-free
produced or manufactured are removed and actually exported without returning to shops which are not labeled as herein above required, as well as tax and duty-free
the Philippines, whether so exported in their original state or as ingredients or parts articles obtained from a duty free shop and subsequently found in a non duty-free
of any manufactured goods or products, any excise tax paid thereon shall be credited shop to be offered for resale shall be confiscated, and the perpetrator of such non-
or refunded upon submission of the proof of actual exportation and upon receipt of labeling or re-selling shall be punishable under the applicable provisions of this
the corresponding foreign exchange payment: Provided, That the excise tax on Code.
mineral products, except coal and coke, imposed under Section 151 shall not be
creditable or refundable even if the mineral products are actually exported. Articles confiscated shall de destroyed using the most environmentally friendly
method available in accordance with the rules and regulations to be promulgated by
SEC. 131. Payment of Excise Taxes on Imported Articles. – the Secretary of Finance, upon recommendation of the Commissioners of Customs
and Internal Revenue.
(A) Persons Liable. - Excise taxes on imported articles shall be paid by the owner or
importer to the Custom Officers, conformably with the regulations of the Department The tax due on any such goods, products, machinery, equipment or other similar
of Finance and before the release of such articles from the customs house, or by the articles shall constitute a lien on the article itself, and such lien shall be superior to
person who is found in possession of articles which are exempt from excise taxes all other charges or liens, irrespective of the possessor thereof.
other than those legally entitled to exemption.
(B) Rate and Basis of the Excise Tax on Imported Articles. - Unless otherwise
In the case of tax-free articles brought or imported into the Philippines by persons, specified imported articles shall be subject to the same rates and basis of excise taxes
entities, or agencies exempt from tax which are subsequently sold, transferred or applicable to locally manufactured articles.
exchanged in the Philippines to non-exempt persons or entitles, the purchasers or
recipients shall be considered the importers thereof, and shall be liable for the duty SEC. 132. Mode of Computing Contents of Cask or Package. - Every fractional
and internal revenue tax due on such importation. part of a proof liter equal to or greater than a half liter in a cask or package
containing more than one liter shall be taxed as a liter, and any smaller fractional part
The provision of any special or general law to the contrary notwithstanding, the shall be exempt; but any package of spirits, the total content of which are less than a
importation of cigars and cigarettes, distilled spirits, fermented liquors and wines proof liter, shall be taxed as one liter.
into the Philippines, even if destined for tax and duty free shops, shall be subject to
all applicable taxes, duties, charges, including excise taxes due thereon. This shall
apply to cigars and cigarettes, distilled spirits, fermented liquors and wines brought
directly into the duly chartered or legislated freeports of the Subic Special Economic
and Freeport Zone, created under Republic Act No. 7227; the Cagayan Special
(c) Entities which are by law exempt from direct and indirect taxes.
SEC. 136. Denaturation, Withdrawal and Use of Denatured Alcohol. - Any person

who produces, withdraws, sells, transports or knowingly uses, or is in possession of
CHAPTER II denatured alcohol, or articles containing denatured alcohol in violation of laws or
regulations now or hereafter in force pertaining thereto shall be required to pay the
EXEMPTION OR CONDITIONAL TAX-FREE REMOVAL OF CERTAIN corresponding tax, in addition to the penalties provided for under Title X of this
ARTICLES Code.
SEC. 133. Removal of Wines and distilled Spirits for Treatment of Tobacco Leaf.- SEC. 137. Removal of Spirits Under Bond for Rectification.- Spirits requiring
Upon issuance of a permit from the Commissioner and subject to the rules and rectification may be removed from the place of production to another establishment
regulations prescribed by the Secretary of Finance, manufacturers of cigars and for the purpose of rectification without prepayment of the excise tax: Provided, That
cigarettes may withdraw from bond, free of excise local and imported wines and the distiller removing such spirits and the rectifier receiving them shall file with the
distilled spirits in specific quantities and grades for use in the treatment of tobacco Commissioner their joint bond conditioned upon the payment by the rectifier of the
leaf to be used in the manufacture of cigars and cigarettes; but such wines and excise tax due on the rectified alcohol: Provided, further, That in cases where alcohol
distilled spirits must first be suitably denatured. has already been rectified either by original and continuous distillation or by re-
distillation, no loss for rectification and handling shall be allowed and the rectifier
thereof shall pay the excise tax due on such losses: Provided, finally, That where a
SEC. 134. Domestic Denatured Alcohol. - Domestic alcohol of not less than one rectifier makes use of spirits upon which the excise tax has not been paid, he shall be
hundred eighty degrees (180O) proof (ninety percent (90%) absolute alcohol) shall, liable for the payment of the tax otherwise due thereon.
when suitably denatured and rendered unfit for oral intake, be exempt from the
excise tax prescribed in Section 141: Provided, however, That such denatured
alcohol shall be subject to tax under Section 106(A) of this Code: Provided, further, SEC. 138. Removal of Fermented Liquors to Bonded Warehouse. - Any brewer
That if such alcohol is to be used for motive power, it shall be taxed under Section may remove or transport from his brewery or other place of manufacture to a bonded
148(d) of this Code: Provided, finally, That any alcohol, previously rendered unfit warehouse used by him exclusively for the storage or sale in bulk of fermented
for oral intake after denaturing but subsequently rendered fit or oral intake after liquors of his own manufacture, any quantity of such fermented liquors, not less than
undergoing fermentation, dilution, purification, mixture or any other similar process one thousand (1,000) liters at one removal, without prepayment of the tax thereon
shall be taxed under Section 141 of this Code and such tax shall be paid by the under a permit which shall be granted by the Commissioner. Such permit shall be
person in possession of such reprocessed spirits. affixed to every package so removed and shall be cancelled or destroyed in such
manner as the Commissioner may prescribe. Thereafter, the manufacturer of such
fermented liquors shall pay the tax in the same manner and under the same penalty
SEC. 135. Petroleum Products Sold to International Carriers and Exempt Entities and liability as when paid at the brewery.
or Agencies. - Petroleum products sold to the following are exempt from excise tax:
SEC. 139. Removal of Damaged Liquors Free of Tax. - When any fermented liquor
(a) International carriers of Philippine or foreign registry on their use or consumption has become sour or otherwise damaged so as to be unfit for use as such, brewers may
outside the Philippines: Provided, That the petroleum products sold to these sell and after securing a special permit from the Commissioner, under such
international carriers shall be stored in a bonded storage tank and may be disposed of conditions as may be prescribed in the rules and regulations prescribed by the
only in accordance with the rules and regulations to be prescribed by the Secretary of Secretary of Finance, remove the same without the payment of tax thereon in cask or
Finance, upon recommendation of the Commissioner; other packages, distinct from those ordinarily used for fermented liquors, each
containing not less than one hundred seventy-five (175) liters with a note of their
(b) Exempt entities or agencies covered by tax treaties, conventions and other contents permanently affixed thereon.
international agreements for their use of consumption: Provided, however, That the
country of said foreign international carrier or exempt entities or agencies exempts SEC. 140. Removal of Tobacco Products without Prepayment of Tax. - Products of
from similar taxes petroleum products sold to Philippine carriers, entities or tobacco entirely unfit for chewing or smoking may be removed free of tax for
agencies; and agricultural or industrial use, under such conditions as may be prescribed in the rules
and regulations prescribed by the Secretary of Finance. Stemmed leaf tobacco, fine-
cut shorts, the refuse of fine-cut chewing tobacco, scraps, cuttings, clippings, stems, (2) In addition to the ad valorem tax herein imposed, the specific tax of Fifty-nine
or midribs, and sweepings of tobacco may be sold in bulk as raw material by one pesos (P59.00) per proof liter.
manufacturer directly to another without payment of the tax, under such conditions
as may be prescribed in the rules and regulations prescribed by the Secretary of (E) Effective January 1, 2024
Finance. 'Stemmed leaf tobacco,' as herein used, means leaf tobacco which has had
the stem or midrib removed. The term does not include broken leaf tobacco (1) An ad valorem equivalent to twenty-two percent (22%) of the net retail price
(excluding the excise tax and the value-added tax) per proof; and
CHAPTER III
(2) In addition to the ad valorem tax herein imposed, the specific tax of Sixty-six
EXCISE TAX ON ALCOHOL PRODUCTS pesos (P66.00) per proof liter.
SEC. 141. Distilled Spirits. - [36] On distilled spirits, subject to the provisions of (F) In addition to the ad valorem tax herein imposed, the specific tax imposed under
Section 133 of this Code, an excise tax shall be levied, assessed and collected based this Section shall be increased by six percent (6%) every year thereafter, effective
on the following schedules: January 1, 2025, through revenue regulations to be issued by the Secretary of
Finance.
(A) Effective January 1, 2020
Medicinal preparations, flavoring extracts, and all other preparations, except toilet
(1) An ad valorem tax equivalent to twenty-two percent (22%) of the net retail price preparations, of which, excluding water, distilled spirits form the chief ingredient,
(excluding the excise tax and the value-added tax) per proof; and shall be subject to the same tax as such chief ingredient.
(2) In addition to the ad valorem tax herein imposed, a specific tax of Forty-two This tax shall be proportionally increased for any strength of the spirits taxed over
pesos (P42.00) per proof liter. proof spirits, and the tax shall attach to this substance as soon as it is in existence as
such, whether it be subsequently separated as pure or impure spirits, or transformed
(B) Effective January 1, 2021 into any other substance either in the process of original production or by any
subsequent process.
(1) An ad valorem equivalent to twenty-two percent (22%) of the net retail price
(excluding the excise tax and the value-added tax) per proof; and 'Spirits or distilled spirits' is the substance known as ethyl alcohol, ethanol or spirits
of wine, including all dilutions, purifications and mixtures thereof, from whatever
(2) In addition to the ad valorem tax herein imposed, the specific tax of Forty-seven source, by whatever process produced, and shall include whisky, brandy, rum, gin
pesos (P47.00) per proof liter. and vodka, and other similar products or mixtures.
(C) Effective January 1, 2022 'Proof spirits' is liquor containing one-half (1/2) of its volume of alcohol of a specific
gravity of seven thousand nine hundred and thirty-nine thousandths (0.7939) at
fifteen degrees centigrade (15˚C). A 'proof liter' means a liter of proof spirits.
(1) An ad valorem equivalent to twenty-two percent (22%) of the net retail price
‘Net retail price’ shall mean the price at which the distilled spirit is sold on retail in
at least five (5) major supermarkets in Metro Manila, excluding the amount intended
(2) In addition to the ad valorem tax herein imposed, the specific tax of Fifty-two to cover the applicable excise tax and the value-added tax. For distilled spirits which
pesos (P52.00) per proof liter. are marketed outside Metro Manila, the ‘net retail price’ shall mean the price at
which the distilled spirits is sold in at least five (5) major supermarkets in the region
(D) Effective January 1, 2023 excluding the amount intended to cover the applicable excise tax and the value-added
tax. This shall initially be validated by the Bureau of Internal Revenue through a
(1) An ad valorem equivalent to twenty-two percent (22%) of the net retail price price survey.
Major supermarkets , as contemplated under this Act, shall be those with the highest The methodology and all pertinent documents used in the conduct of the latest price
annual gross sales in Metro Manila or the region, as the case may be, as determined survey shall be submitted to the Congressional Oversight Committee on the
by the Bureau of Internal Revenue, and shall exclude retail outlets or kiosks, Comprehensive Tax Reform Program created under Republic Act No. 8240.
convenience or sari-sari stores, and others of a similar nature: Provided, That no two
(2) supermarkets in the list to be surveyed are affiliated and/or branches of each Manufacturers and importers of distilled spirits shall, within thirty (30) days from the
other: Provided, finally, That in case a particular distilled spirit is not sold in major effectivity of this Act, and within the first five (5) days of every third month
supermarkets, the price survey can be conducted in retail outlets where said distilled thereafter, submit to the Commissioner a sworn statement of the volume of sales and
spirit is sold in Metro Manila or the region, as the case maybe, upon determination of removals for each particular brand of distilled spirits sold at his establishment for the
the Commissioner of the Internal Revenue. three-month period immediately preceding.
The net retail price shall be determined by the Bureau of Internal Revenue (BIR) Any manufacturer or importer who, in violation of this Section, misdeclares or
through a biannual price survey under oath. misrepresents in his or its sworn statement herein required any pertinent data or
information shall, upon final findings by the Commissioner that the violation was
The methodology and all pertinent documents used in the conduct of the latest price committed, be penalized by a summary cancellation or withdrawal of his or its
survey shall be submitted to the Congressional Oversight Committee on the permit to engage in business as manufacturer or importer of distilled spirits.
Comprehensive Tax Reform Program (COCCTRP) created under Republic Act No.
8240. Any corporation, association or partnership liable for any of the acts or omissions in
violation of this Section shall be fined treble the amount of deficiency taxes,
Understatement of the suggested net retail price by as much as fifteen percent (15%) surcharges and interest which may be assessed pursuant to this Section.
of the actual net retail price shall render the manufacturer or importer liable for
additional excise tax equivalent to the tax due and difference between the understated Any person liable for any of the acts or omissions prohibited under this Section shall
suggested net retail price and the actual net retail price. be criminally liable and penalized under Section 254 of this Code. Any person who
willfully aids or abets in the commission of any such act or omission shall be
Distilled spirits introduced in the domestic market after the effectivity of this Act criminally liable in the same manner as the principal.
shall be initially taxed according to their suggested net retail prices.
If the offender is not a citizen of the Philippines, he shall be deported immediately
‘Suggested net retail price’ shall mean the net retail price (excluding the excise tax after serving the sentence, without further proceedings for deportation.
and the value-added tax) at which locally manufactured or imported distilled spirits
are intended by the manufacturer or importer to be sold on retail in major SEC. 142. Wines. - [36] On wines, there shall be levied, assessed and collected
supermarkets or retail outlets in Metro Manila for those marketed nationwide, and in effective on January 1, 2020, an excise tax equivalent to Fifty pesos (P50.00) per
other regions, for those with regional markets. At the end of three (3) months from liter. The rate of tax imposed under this Section shall be increased by six percent
the product launch, the Bureau of Internal Revenue shall validate the suggested net (6%) every year thereafter, effective January 1, 2021, through revenue regulations
retail price of the new brand against the net retail price as defined herein and initially issued by the Secretary of Finance.
determine the correct tax on a newly introduced distilled spirits. After the end of nine
(9) months from such validation, the Bureau of Internal Revenue shall revalidate the Manufacturers and importers of wines shall, within thirty (30) days from the
initially validated net retail price against the net retail price as of the time of effectivity of this Act, and within the first five (5) days of every month thereafter,
revalidation in order to finally determine the correct tax on a newly introduced submit to the Commissioner a sworn statement of the volume of sales and removals
distilled spirits. for each particular brand of wines sold at his establishment for the three-month
period immediately preceding.
All distilled spirits existing in the market at the time of the effectivity of this Act
shall be taxed according to the tax rates provided above based on the latest price Any manufacturer or importer who, in violation of this Section, misdeclares or
survey of the distilled spirits conducted by the Bureau misrepresents in his or its sworn statement herein required any pertinent data or
of Internal Revenue. committed be penalized by a summary cancellation or withdrawal of his or its permit
to engage in business as manufacturer or importer of wines.
Any corporation, association or partnership liable for any of the acts or omissions in Any corporation, association or partnership liable for any of the acts or omissions in
violation of this Section shall be fined treble the amount of deficiency taxes, violation of this Section shall be fined treble the amount of deficiency taxes,
surcharges and interest which may be assessed pursuant to this Section. surcharges and interest which may be assessed pursuant to this Section.
Any person liable for any of the acts or omissions prohibited under this Section shall Any person liable for any of the acts or omissions prohibited under this Section shall
be criminally liable and penalized under Section 254 of this Code. Any person who be criminally liable and penalized under Section 254 of this Code. Any person who
willfully aids or abets in the commission of any such act or omission shall be willfully aids or abets in the commission of any such act or omission shall be
criminally liable in the same manner as the principal. criminally liable in the same manner as the principal.
If the offender is not a citizen of the Philippines, he shall be deported immediately If the offender is not a citizen of the Philippines, he shall be deported immediately
after serving the sentence, without further proceedings for deportation. after serving the sentence, without further proceedings for deportation.
Sec. 143. Fermented Liquor. - [36] There shall be levied, assessed and collected an

excise tax on beer, lager beer, ale, porter and other fermented liquors regardless if
manufactured in factories or sold and brewed at micro-breweries or small
establishments such as pubs and restaurants, except tuba, basi, tapuy and similar
domestic fermented liquors in accordance with the following schedule:
Effective on January 1, 2020, the tax shall be Thirty-five pesos (P35.00) per liter;
Effective on January 1, 2021, the tax shall be Thirty-seven pesos (P37.00) per liter;
Effective on January 1, 2022, the tax shall be Thirty-nine pesos (P39.00) per liter;
Effective on January 1, 2023, the tax shall be Forty-one pesos (P41.00) per liter; and
Effective on January 1, 2024, the tax shall be Forty-three pesos (P43.00) per liter.
The rates of tax imposed under this Section shall be increased by six percent (6%)
every year thereafter effective on January 1, 2025, through revenue regulations
issued by the Secretary of Finance.
Every brewer, manufacturer or importer of fermented liquor shall, within thirty (30)
days from the effectivity of this Act, and within the first five (5) days of every month
thereafter, submit to the Commissioner a sworn statement of the volume of sales and
removals for each particular brand of fermented liquor sold at his establishment for
the three-month period immediately preceding.
Any brewer, manufacturer or importer who, in violation of this Section, misdeclares

or misrepresents in his or its sworn statement herein required any pertinent data or
committed, be penalized by a summary cancellation or withdrawal of his or its
permit to engage in business as brewer, manufacturer or importer of fermented
liquor.
No tobacco products manufactured in the Philippines and produced for export shall
be removed from their place of manufacture or exported without posting of an export
bond equivalent to the amount of the excise tax due thereon if sold
domestically: Provided, however, That tobacco products for export may be
CHAPTER IV transferred from the place of manufacture to a bonded facility, upon posting of a
transfer bond, prior to export.
EXCISE TAX ON TOBACCO PRODUCTS
Tobacco products imported into the Philippines and destined for foreign countries
shall not be allowed entry without posting a bond equivalent to the amount of
SEC. 144. Tobacco Products, Heated Tobacco Products, and Vapor Products. - [36]
customs duty, excise and value-added taxes due thereon if sold domestically.
There shall be collected an excise tax of One peso and seventy-five centavos (P1.75)
effective on January 1, 2013 on each kilogram of the following products of tobacco:
Manufacturers and importers of tobacco products shall, within thirty (30) days from
the effectivity of this Act, and within the first five (5) days of every month thereafter,
(A) Tobacco Products. - There shall be collected an excise tax of One peso and submit to the Commissioner a sworn statement of the volume of sales for each
seventy-five centavos (P1.75) effective on January 1, 2013 on each kilogram of the particular brand of tobacco products sold for the three-month period immediately
following products of tobacco: preceding.
(a) Tobacco twisted by hand or reduced into a condition to be consumed in any Any manufacturer or importer who, in violation of this Section, misdeclares or
manner other than the ordinary mode of drying and curing; misrepresents hi his or its sworn statement herein required any pertinent data or
(b) Tobacco prepared or partially prepared with or without the use of any machine or committed, be penalized by a summary cancellation or withdrawal of his or its
instruments or without being pressed or sweetened except as otherwise provided permit to engage in business as manufacturer or importer of cigars or cigarettes.
hereunder; and
Any corporation, association or partnership liable for any of the acts or omissions in
(c) Fine-cut shorts and refuse, scraps, clippings, cuttings, stems and sweepings of violation of this Section shall be fined treble the amount of deficiency taxes,
tobacco except as otherwise provided hereunder. surcharges and interest which may be assessed pursuant to this Section.
Stemmed leaf tobacco, tobacco prepared or partially prepared with or without the use Any person liable for any of the acts or omissions prohibited under this Section shall
of any machine or instrument or without being pressed or sweetened, fine-cut shorts be criminally liable and penalized under Section 254 of this Code. Any person who
and refuse, scraps, clippings, cuttings, stems, midribs, and sweepings of tobacco willfully aids or abets in the commission of any such act or omission shall be
resulting from the handling or stripping of whole leaf tobacco shall be transferred, criminally liable in the same manner as the principal.
disposed of, or otherwise sold, without any prepayment of the excise tax herein
provided for, if the same are to be exported or to be used in the manufacture of If the offender is not a citizen of the Philippines, he shall be deported immediately
cigars, cigarettes, or other tobacco products on which the excise tax will eventually after serving the sentence, without further proceedings for deportation.
be paid on the finished product, under such conditions as may be prescribed in the
rules and regulations promulgated by the Secretary of Finance, upon
recommendation of the Commissioner. (B) Heated Tobacco Products. [36] - There shall be levied, assessed and collected on
heated tobacco products an excise tax at the rate prescribed below:
On tobacco specially prepared for chewing so as to be unsuitable for use in any other
manner, on each kilogram, One peso and fifty centavos (P1.50) effective on January Effective on January 1, 2020, Twenty-five pesos (P25.00) per pack of twenty (20)
1, 2013. units or packaging combinations of not more than twenty (20) units;
The rates of tax imposed under this Section shall be increased by four percent. (4%) Effective on January 1, 2021, Twenty-seven pesos and fifty centavos (P27.50) per
every year thereafter effective on January 1, 2014, through revenue regulations pack of twenty (20) units or packaging combinations of not more than twenty (20)
issued by the Secretary of Finance. units;
Effective on January 1, 2022, Thirty pesos (P30.00) per pack of twenty (20) units or criminally liable in the same manner as the principal.
packaging combinations of not more than twenty (20) units; and If the offender is not a citizen of the Philippines, he/she shall be deported
immediately after serving the sentence, without further proceedings for deportation.
Effective on January 1,2023, Thirty-two pesos and fifty centavos (P32.50) per pack
of twenty (20) units or packaging combinations of not more than twenty (20) units. The Food and Drug Administration (FDA) shall periodically determine and regulate,
consistent with evolving medical and scientific studies, the manufacture, importation,
The rates of tax imposed under this Subsection, shall be increased by five percent sale, packaging, advertising, and distribution of heated tobacco products, including
(5%) every year effective on January 1, 2024 through revenue regulations issued by banning the sale to nonsmokers or persons below twenty-one (21) years old.
the Secretary of Finance.
Selling heated tobacco products to persons below twenty-one (21) years old shall he
Heated tobacco products shall only be packed in twenties and other packaging prohibited, and shall be punished with a fine of Ten thousand pesos (P10,000.00) and
combinations of not more than twenty (20) units. imprisonment of thirty (30) days.
No heated tobacco products manufactured in the Philippines and produced for export Unit packets and any outside wrapping of heated tobacco products and other similar
shall be removed from their place of manufacture or exported without posting of an products shall carry a health warning compliant with Republic Act No. 10643,
export bond equivalent to the amount of the excise tax due thereon if sold otherwise known as ‘The Graphic Health Warnings Law’.
domestically: Provided, however, That heated tobacco products for export may be
transferred from the place of manufacture to a bonded facility, upon posting of a Manufacturers, distributors, importers, and sellers of heated tobacco products are
transfer bond, prior to export. given a period of eighteen (18) months from the effectivity of the implementing rules
and regulations (IRR) of this Act to comply with the requirements under such IRR.
Heated tobacco products imported into the Philippines and destined for foreign
countries shall not be allowed entry without posting a bond equivalent to the amount Eighteen (18) months after the effectivity of this Act, no person or legal entity shall
of customs duty, excise and value-added taxes due thereon if sold domestically. sell or commercially distribute or display any heated tobacco product without
ensuring that the labels and packages, as well as any other container used in
Manufacturers, distributors, and importers of heated tobacco products shall, within displaying the said products meet the requirements under this Act.
thirty (30) days from the effectivity of this Act, and within the first five (5) days of
every month thereafter, submit to the Commissioner a sworn statement of the volume Any violation of the foregoing provisions on health warnings shall be punishable
of sales and removals for each particular brand of heated tobacco products sold for with the same penalties provided for in Republic Act No. 10643, otherwise known as
the three-month period immediately preceding. ‘The Graphic Health Warnings Law’.
Any manufacturer, distributor, or importer who, in violation of this Section, The Bureau of Internal Revenue is mandated to issue a revenue regulation
misdeclares or misrepresents in his or its sworn statement herein required any prescribing the floor price or the minimum price of heated tobacco product taking
pertinent data or information shall, upon final findings by the Commissioner that the into account the sum of the excise and value- added taxes as provided herein.
violation was committed, be penalized by a summary cancellation or withdrawal of
his/her or its permit to engage in business as manufacturer, distributor, or importer of (C) Vapor Products. [36] - There shall be levied, assessed and collected on vapor
heated tobacco products. products an excise tax at the rates prescribed below:
Any corporation, association or partnership liable for any of the acts or omissions in (1) Nicotine Salt or Salt Nicotine. - There shall be levied, assessed and collected on
violation of this Section shall be fined treble the amount of deficiency taxes, any liquid substance, regardless of nicotine content, including nicotine-free liquids or
surcharges and interest which may be assessed pursuant to this Section. any similar product, further classified as nicotine salt or salt nicotine, an excise tax
based on the following schedules:
Any person liable for any of the acts or omissions prohibited under this Section shall
be criminally liable and penalized under Section 254 of this Code. Any person who Effective on January 1, 2020, Thirty-seven pesos (P37.00) per milliliter or a fraction
willfully aids or abets in the commission of any such act or omission shall be thereof;
Effective on January 1, 2021, Forty-two pesos (P42.00) per milliliter or a fraction Vapor products imported into the Philippines and destined for foreign countries shall
thereof; not be allowed entry without posting a bond equivalent to the amount of customs
duty, excise and value-added taxes due thereon if sold domestically.
Effective on January 1, 2022, Forty-seven pesos (P47.00) per- milliliter or a fraction
thereof; and Manufacturers, distributors, and importers of vapor products shall, within thirty (30)
days from the effectivity of this Act, and within the first five (5) days of every month
Effective on January 1, 2023, Fifty-two pesos (P52.00) per milliliter or a fraction thereafter, submit to the Commissioner a sworn statement of the volume of sales for
thereof. each particular brand of vapor products sold for the three-month period immediately
preceding.
Provided, That the rates of tax imposed under this Subsection shall be increased by
five percent (5%) every year effective on January 1, 2024, through revenue Any manufacturer, distributor, or importer who, in violation of this Section,
regulations issued by the Secretary of Finance. misdeclares or misrepresents in his/her or its sworn statement herein required any
pertinent data or information shall, upon final findings by the Commissioner that the
(2) Conventional 'Freebase' or 'Classic' Nicotine. - There shall be levied, assessed violation was committed, be penalized by a summary cancellation or withdrawal of
and collected on any liquid substance, regardless of nicotine content, including his/her or its permit to engage in business as manufacturer, distributor, or importer of
nicotine-free liquid or any similar product, further classified as conventional vapor products.
'freebase' or 'classic' nicotine an excise tax based on the following schedules:
Effective on January 1, 2020, Forty-five pesos (P45.00) per ten (10) milliliters or a violation of this Section shall be fined treble the amount of deficiency taxes,
fraction thereof; surcharges and interest which may be assessed pursuant to this Section.
Effective on January 1, 2021, Fifty pesos (P50.00) per ten (10) milliliters or a Any person liable for any of the acts or omissions prohibited under this Section shall
fraction thereof; be criminally liable and penalized under Section 254 of this Code. Any person who
willfully aids or abets in the commission of any such act or omission shall be
criminally liable in the same manner as the principal.
Effective on. January 1, 2022, Fifty-five pesos (P55.00) per ten (10) milliliters or a
fraction thereof; and
If the offender is not a citizen of the Philippines, he/she shall be deported
Effective on January 1, 2023, Sixty pesos (P60.00) per ten (10) milliliters or a
fraction thereof.
The FDA shall periodically determine and regulate, consistent with evolving medical
and scientific studies, the manufacture, importation, sale, packaging, advertising, and
Provided, That the rates of tax imposed under this Subsection shall be increased by distribution of vapor products, including banning the sale to nonsmokers or persons
five percent (5%) every year effective January 1, 2024, through revenue regulations below twenty-one (21) years old, and banning of flavorings.
to be issued by the Secretary of Finance.
Provided, That vapor products which exceed sixty-five milligrams of nicotine per
Manufacturers, distributors, and importers of vapor products shall be required to milliliter (65mg/ml) of liquid or gel, or which does not exceed this limit but seeks to
indicate on the package the actual volume in milliliters of the liquid solutions and make health claims, shall be subject to additional requirements as the DOH and the
gels. FDA may impose: Provided, however, That this shall not diminish the regulatory
powers of the FDA over vapor products, regardless of nicotine content.
No vapor products manufactured in the Philippines and produced for export shall be
removed from their place of manufacture or exported without posting of an export Selling vapor products to persons below twenty-one (21) years old shall be
bond equivalent to the amount of the excise tax due thereon if sold domestically: prohibited, and shall be punished with a fine of Ten thousand pesos (P10,000.00) and
Provided, however, That vapor products for export may be transferred from the place imprisonment of (30) days.
of manufacture to a bonded facility, upon posting of a transfer bond, prior to export.
The manufacture, importation, sale and distribution of vapor products with flavoring ‘Net-retail price’ shall mean the price at which the cigar is sold on retail in at least
other than plain tobacco or plain menthol, shall be prohibited. five (5) major supermarkets in Metro Manila (for brands of cigar marketed
nationally), excluding the amount intended to cover the applicable excise tax and the
Unit packets and any outside wrapping of vapor products and other similar products value-added tax. For cigars which are marketed only outside Metro Manila, the ‘net
shall carry a health warning compliant with Republic Act No. 10643, otherwise retail price’ shall mean the price at which the cigar is sold in at least five (5) major
known as ‘The Graphic Health Warnings Law’. supermarkets in the region excluding the amount intended to cover the applicable
excise tax and the value-added tax. This shall be provided by the manufacturer or
Manufacturers, distributors, importers, and sellers of vapor products are given a importer through a sworn statement and shall be validated by the Bureau of Internal
period of eighteen (18) months from the effectivity of the IRR of this Act to comply Revenue (BIR) through a price survey.
with the requirements under such IRR.
Major supermarkets, as contemplated under this Act, shall be those with the highest
Eighteen (18) months after the effectivity of this Act, no person or legal entity shall annual gross sales in Metro Manila or the region, as the case may be, as determined
sell or commercially distribute or display any vapor product without ensuring that the by the BIR, and snail exclude retail outlets or kiosks, convenience or sari-sari stores,
labels and packages, as well as any other container used in displaying the said and others of a similar nature: Provided, That no two (2) supermarkets in the list to
products meet the requirements under this Act. be surveyed are affiliated and/or branches of each other: Provided, finally, That in
Any violation of the foregoing provisions on health warning shall be punishable with case a particular cigar is not sold in major supermarkets, the price survey can be
the same penalties provided for in Republic Act No. 10643, otherwise known as ‘The conducted in retail outlets where said cigar is sold in Metro Manila or the region, as
Graphic Health Warnings Law’. the case may be, upon determination of the Commissioner of Internal Revenue.
Notwithstanding the provisions of this Act on heated tobacco products and vapor The net retail price shall be validated by the BIR through a biannual price survey
products, this Act acknowledges the need for further scientific evidence on the health under oath.
impact of these products.
The methodology and all pertinent documents used in the conduct of the latest price
The Bureau of Internal Revenue is mandated to issue a revenue regulation survey shall be submitted to the Congressional Oversight Committee on the
prescribing the floor price or the minimum price of vapor products taking into Comprehensive Tax Reform Program created under Republic Act No. 8240.[130]
account the sum of the excise tax and value-added tax as provided herein.
(B) Cigarettes Packed by Hand. - There shall be levied, assessed and collected on
SEC. 145. Cigars and Cigarettes. - cigarettes packed by hand an excise tax based on the following schedules:
(A) Cigars. - There shall be levied, assessed and collected on cigars an excise tax in Effective on January 1, 2020, Forty-five pesos (₱45.00) per pack;
accordance with the following schedule:
Effective on January 1, 2021. Fifty pesos (₱50.00) per pack;
(1) Effective on January 1, 2013
Effective on January 1, 2022, Fifty-five pesos (₱55.00) per pack;
(a) An ad valorem tax equivalent to twenty percent (20%) of the net retail price
(excluding the excise tax and the value-added tax) per cigar; and Effective on January 1, 2023, Sixty pesos (₱60.00) per pack;[131]
(b) In addition to the ad valorem tax herein imposed, a specific tax of Five pesos The rates of tax imposed under this Subsection shall be increased by five percent
(P5.00) per cigar. (5%) [132] every year effective on January 1, 2024,[133] through revenue regulations
issued by the Secretary of Finance.
(2) In addition to the ad valorem tax herein imposed, the specific tax rate of Five
pesos (₱5.00) imposed under this Subsection shall be increased by five percent (5%) Duly registered cigarettes packed by hand shall only be packed in twenties and other
effective on January 1, 2024 [129] through revenue regulations issued by the Secretary packaging combinations of not more than twenty (20).[134]
of Finance.
‘Cigarettes packed by hand’ shall refer to the manner of packaging of cigarette Any manufacturer or importer who, in violation of this Section, misdeclares or
sticks using an individual person’s hands and not through any other means such as a misrepresents in his/her or its sworn statement herein required any pertinent data or
mechanical device, machine or equipment. information shall, upon final findings by the Commissioner that the violation was
committed, be penalized by a summary cancellation or withdrawal of his/her or its
(C) Cigarettes Packed by Machine. – There shall be levied, assessed and collected permit to engage in business as manufacturer or importer of cigars or cigarettes.
on cigarettes packed by machine a tax at the rates prescribed below:
Effective on January 1,2020, Forty-five pesos (₱45.00) per pack; violation of this Section shall be fined treble the aggregate amount of deficiency
taxes, surcharges and interest which may be assessed pursuant to this Section.
Effective on January 1, 2021, Fifty pesos (₱50.00) per pack;
Selling of tobacco products at a price lower than the combined excise and value-
Effective on January 1. 2022, Fifty-five pesos (₱55.00) per pack; added taxes imposed under the law shall be prohibited. The seller of such products
shall be punished with a fine of not less than ten (10) times the amount of excise plus
value-added taxes due but not less than Two hundred thousand pesos (₱200:000.00)
Effective on January 1, 2023, Sixty pesos (₱60.00) per pack;[135] nor more than Five hundred thousand pesos (500,000.00), and imprisonment of not
less than four (4) years but not more than six (6) years.
The rates of tax imposed under this Subsection shall be increased by five percent
(5%) [132] every year effective on January 1, 2024,[133] through revenue regulations The BIR is mandated to issue a revenue regulation prescribing the cigarette floor
issued by the Secretary of Finance. price or the minimum cigarette price taking into account the sum of the excise and
value-added taxes as provided herein.
Duly registered cigarettes packed by machine shall only be packed in twenties and
other packaging combinations of not more than twenty (20). Any person liable for any of the acts or omissions prohibited under this Section shall
be criminally liable and penalized under Section 254 of this Code. Any person who
Understatement of the suggested net retail price by as much as fifteen percent (15%) willfully aids or abets in the commission of any such act or omission shall be
of the actual net retail price shall render the manufacturer or importer liable for criminally liable in the same manner as the principal.
additional excise tax equivalent to the tax due and difference between the understated
suggested net retail price and the actual net retail price. If the offender is not a citizen of the Philippines, he/she shall be deported
No tobacco products manufactured in the Philippines and produced for export shall [136]
be removed from their place of manufacture or exported without posting of an export

bond equivalent to the amount of the excise tax due thereon if sold domestically: SEC. 146. Inspection Fee. - For inspection made in accordance with this Chapter,
Provided, however, That tobacco products for export may be transferred from the there shall be collected a fee of Fifty centavos (₱0.50) for each thousand cigars or
place of manufacture to a bonded facility, upon posting of a transfer bond, prior to fraction thereof; Ten centavos (₱0.10) for each thousand cigarettes or fraction
export. thereof; Ten centavos (₱0.10) for each thousand unit of heated tobacco products;
One centavo (₱0.01) for each milliliter of liquid used in vapor products; [137] Two
Tobacco products imported into the Philippines and destined for foreign countries centavos (₱0.02) for each kilogram of leaf tobacco or fraction thereof; and Three
shall not be allowed entry without posting a bond equivalent to the amount of centavos (₱0.03) for each kilogram or fraction thereof, of scrap and other
customs duty, excise and value-added taxes due thereon if sold domestically. manufactured tobacco.
Manufacturers and importers of cigars and cigarettes shall, within thirty (30) days The inspection fee on leaf tobacco, scrap, cigars, cigarettes and other tobacco
from the effectivity of this Act and within the first five (5) days of every month products as defined in Section 147 of this Code shall be paid by the wholesaler,
thereafter, submit to the Commissioner a sworn statement of the volume of sales and manufacturer, producer, owner or operator of redrying plant, as the case may be,
removals for cigars and/or cigarettes for the three-month period immediately immediately before removal thereof from the establishment of the wholesaler,
preceding. manufacturer, owner or operator of the re-drying plant. In case of imported leaf
tobacco and products thereof, the inspection fee shall be paid by the importer before
removal from customs' custody.
Fifty percent (50%) of the tobacco inspection fee shall accrue to the Tobacco
Inspection Fund created by Section 12 of Act No. 2613, as amended by Act No.
3179, and fifty percent (50%) shall accrue to the Cultural Center of the Philippines.
SEC. 147. Definition of Terms. - When used herein and in statements or official

forms prescribed hereunder, the following terms shall have the meaning indicated:
(a) 'Cigars' mean all rolls of tobacco or any substitute thereof, wrapped in leaf
tobacco that are consumed via combustion of the tobacco.[138]
(b) 'Cigarettes' mean all rolls of finely-cut leaf tobacco, or any substitute therefor,
wrapped in paper or in any other material that are consumed via combustion of the
tobacco.[138]
(c) 'Wholesale price' shall mean the amount of money or price paid for cigars or
cigarettes purchased for the purpose of resale, regardless of quantity.
(d) 'Retail price' shall mean the amount of money or price which an ultimate
consumer or end-user pays for cigars or cigarettes purchased.
(e) ‘Heated tobacco products’ refer to tobacco products that may be consumed
through heating tobacco, either electrically or through other means sufficiently to
release an aerosol that can be inhaled, without burning or any combustion of the
tobacco. Heated tobacco products include liquid solutions and gels that are part of
the product and are heated to generate an aerosol.[138]
(f) ‘Vapor products’ shall mean electronic nicotine and non-nicotine delivery
systems (ENDS/ENNDS), which are combinations of (i) a liquid solution or gel, that
transforms into an aerosol without combustion through the employment of a
mechanical or electronic heating element, battery or circuit that can be used to heat
such solution or gel, and includes, but is not limited to (ii) a cartridge, (iii) a tank,
and (iv) the device without a cartridge or tank. It is commonly known as nicotine
salt/salt nicotine, and conventional “freebase” or “classic” nicotine, and other similar
products: Provided, That all vapor products shall be covered by this Act regardless of
its nicotine content. [138]

locally-extracted natural gas during the non-availability thereof, subject to the rules
and regulations to be promulgated by the Secretary of Finance, [144] per liter of volume
capacity, zero (P0.00): Provided, further, That the production of petroleum products,
whether or not they are classified as products of distillation and for use solely for the
production of gasoline shall be exempt from excise tax:[142] Provided, finally, That
the by-product including fuel oil, diesel fuel, kerosene, pyrolysis gasoline, liquefied
petroleum gases and similar oils having more or less the same generating power,
CHAPTER V which are produced in the processing of naphtha into petrochemical products shall be
subject to the applicable excise tax specified in this Section, except when such by-
EXCISE TAX ON PETROLEUM PRODUCTS products are transferred to any of the local oil refineries through sale, barter or
exchange, for the purpose of further processing or blending into finished products
SEC. 148. Manufactured Oils and Other Fuels. - There shall be collected on which are subject to excise tax under this Section;
refined and manufactured mineral oils and motor fuels, the following excise taxes
which shall attach to the goods hereunder enumerated as soon as they are in (f) Unleaded premium gasoline, per liter of volume capacity, Seven pesos (P7.00);
existence as such: [145]
Effective January 1, 2018 (g) Aviation turbo jet fuel, aviation gas,,[142] per liter of volume capacity, Four pesos
(P4.00);[146]
(a) Lubricating oils and greases, including but not limited to, basestock for lube oils
and greases, high vacuum distillates, aromatic extracts, and other similar (h) Kerosene, per liter of volume capacity, Three pesos (P3.00): [147] Provided, That
preparations, and additives for lubricating oils and greases, whether such additives kerosene, when used as aviation fuel, shall be subject to the same tax on aviation
are petroleum based or not, per liter and kilogram respectively, of volume capacity or turbo jet fuel under the preceding paragraph (g), such tax to be assessed on the user
weight, Eight pesos (P8.00): Provided, That lubricating oils and greases produced thereof;
from basestocks and additives on which the excise tax has already been paid shall no
longer be subject to excise tax: Provided, further, That locally produced or imported (i) Diesel fuel oil, and on similar fuel oils having more or less the same generating
oils previously taxed as such but are subsequently reprocessed, re-refined or recycled power, per liter of volume capacity, Two pesos and fifty centavos (P2.50);[147]
shall likewise be subject to the tax imposed under this Section. [139]
(j) Liquefied petroleum gas, per kilogram, One peso (P1.00): [147] Provided, That
(b) Processed gas, per liter of volume capacity, Eight pesos (P8.00);[140] liquefied petroleum gas when used as raw material in the production of
petrochemical products, subject to the rules and regulations to be promulgated by the
(c) Waxes and petrolatum, per kilogram, Eight pesos (P8.00);[141] Secretary of Finance, shall be taxed zero (P0.00) per kilogram:[142] Provided, finally,
That liquefied petroleum gas used for motive power shall be taxed at the equivalent
(d) On denatured alcohol to be used for motive power, per liter of volume capacity, rate as the excise tax on diesel fuel oil;
Eight pesos (P8.00):[140] Provided, That unless otherwise provided by special laws, if
the denatured alcohol is mixed with gasoline, the excise tax on which has already (k) Asphalts, per kilogram, Eight pesos (P8.00);[148]
been paid, only the alcohol content shall be subject to the tax herein prescribed. For
purposes of this Subsection, the removal of denatured alcohol of not less than one (l) Bunker fuel oil, and on similar fuel oils having more or less the same generating
hundred eighty degrees (180o) proof (ninety percent (90%) absolute alcohol) shall be power, per liter of volume capacity, Two pesos and fifty centavos (P2.50):
deemed to have been removed for motive power, unless shown otherwise; [147]
Provided, however, That the excise taxes paid on the purchased basestock
(bunker) used in the manufacture of excisable articles and forming part thereof shall
(e) Naphtha, regular gasoline, pyrolysis gasoline [142] and other similar products of be credited against the excise tax due therefrom;[142] and
distillation, per liter of volume capacity, Seven pesos (P7.00): [143] Provided,
however, That naphtha and pyrolysis gasoline, [142] when used as a raw material in the (m) Petroleum coke, per metric ton, Two pesos and fifty centavos (P2.50): Provided,
reproduction of petrochemical products or in refining of petroleum products, [142] or however, That, petroleum coke, when used as feedstock to any power generating
as replacement fuel for natural-gas-fired-combined cycle power plant in lieu of facility, per metric ton, zero (P0.00).[142]
Effective January 1, 2019[142] (g) Aviation turbo jet fuel, aviation gas, per liter of volume capacity, Four pesos
(P4.00);
(a) Lubricating oils and greases, including but not limited to, basestock for lube oils
and greases, high vacuum distillates, aromatic extracts, and other similar (h) Kerosene, per liter of volume capacity, Four pesos (P4.00): Provided, That
preparations, and additives for lubricating oils and greases, whether such additives kerosene, when used as aviation fuel, shall be subject to the same tax on aviation
are petroleum based or not, per liter and kilogram respectively, of volume capacity or turbo jet fuel under the preceding paragraph (g), such tax to be assessed on the user
weight, Nine pesos (P9.00): Provided, That lubricating oils and greases produced thereof;
from basestocks and additives on which the excise tax has already been paid shall no
longer be subject to excise tax: Provided, further, That locally produced or imported (i) Diesel fuel oil, and on similar fuel oils having more or less the same generating
oils previously taxed as such but are subsequently reprocessed, re-refined or recycled power, per liter of volume capacity, Four pesos and fifty centavos (P4.50);
shall likewise be subject to the tax imposed under this Section.
(j) Liquefied petroleum gas, per kilogram, Two pesos (P2.00): Provided, That
(b) Processed gas, per liter of volume capacity, Nine pesos (P9.00); liquefied petroleum gas when used as raw material in the production of
petrochemical products, subject to the rules and regulations to be promulgated by the
(c) Waxes and petrolatum, per kilogram, Nine pesos (P9.00); Secretary of Finance, shall be taxed zero (P0.00) per kilogram: Provided, finally,
That liquefied petroleum gas used for motive power shall be taxed at the equivalent
(d) On denatured alcohol to be used for motive power, per liter of volume capacity, rate as the excise tax on diesel fuel oil;
Nine pesos (P9.00): Provided, That unless otherwise provided by special laws, if the
denatured alcohol is mixed with gasoline, the excise tax on which has already been (k) Asphalts, per kilogram, Nine pesos (P9.00);
paid, only the alcohol content shall be subject to the tax herein prescribed. For
purposes of this Subsection, the removal of denatured alcohol of not less than one (l) Bunker fuel oil, and on similar fuel oils having more or less the same generating
hundred eighty degrees (180o) proof (ninety percent (90%) absolute alcohol) shall be power, per liter of volume capacity, Four pesos and fifty centavos (P4.50): Provided,
deemed to have been removed for motive power, unless shown otherwise; however, That the excise taxes paid on the purchased basestock (bunker) used in the
manufacture of excisable articles and forming part thereof shall be credited against
(e) Naphtha, regular gasoline, pyrolysis gasoline and other similar products of the excise tax due therefrom; and
distillation, per liter of volume capacity, Nine pesos (P9.00): Provided, however,
That naphtha and pyrolysis gasoline, when used as a raw material in the reproduction (m) Petroleum coke, per metric ton, Four pesos and fifty centavos (P4.50): Provided,
of petrochemical products or in refining of petroleum products, or as replacement however, That, petroleum coke, when used as feedstock to any power generating
fuel for natural-gas-fired-combined cycle power plant in lieu of locally-extracted facility, per metric ton, zero (P0.00).
natural gas during the non-availability thereof, subject to the rules and regulations to
be promulgated by the Secretary of Finance, per liter of volume capacity, zero Effective January 1, 2020[149]
(P0.00): Provided, further, That the production of petroleum products, whether or not
they are classified as products of distillation and for use solely for the production of
gasoline shall be exempt from excise tax: Provided, finally, That the by-product (a) Lubricating oils and greases, including but not limited to, basestock for lube oils
including fuel oil, diesel fuel, kerosene, pyrolysis gasoline, liquefied petroleum gases and greases, high vacuum distillates, aromatic extracts, and other similar
and similar oils having more or less the same generating power, which are produced preparations, and additives for lubricating oils and greases, whether such additives
in the processing of naphtha into petrochemical products shall be subject to the are petroleum based or not, per liter and kilogram respectively, of volume capacity or
applicable excise tax specified in this Section, except when such by-products are weight, Ten pesos (P10.00): Provided, That lubricating oils and greases produced
transferred to any of the local oil refineries through sale, barter or exchange, for the from basestocks and additives on which the excise tax has already been paid shall no
purpose of further processing or blending into finished products which are subject to longer be subject to excise tax: Provided, further, That locally produced or imported
excise tax under this Section; oils previously taxed as such but are subsequently reprocessed, re-refined or recycled
shall likewise be subject to the tax imposed under this Section.
(f) Unleaded premium gasoline, per liter of volume capacity, Nine pesos (P9.00);
(b) Processed gas, per liter of volume capacity, Ten pesos (P10.00);
(c) Waxes and petrolatum, per kilogram, Ten pesos (P10.00); That liquefied petroleum gas used for motive power shall be taxed at the equivalent
rate as the excise tax on diesel fuel oil;
(d) On denatured alcohol to be used for motive power, per liter of volume capacity,
Ten pesos (P10.00): Provided, That unless otherwise provided by special laws, if the (k) Asphalts, per kilogram, Ten pesos (P10.00);
denatured alcohol is mixed with gasoline, the excise tax on which has already been
paid, only the alcohol content shall be subject to the tax herein prescribed. For (l) Bunker fuel oil, and on similar fuel oils having more or less the same generating
purposes of this Subsection, the removal of denatured alcohol of not less than one power, per liter of volume capacity, Six pesos (P6.00): Provided, however, That the
hundred eighty degrees (180o) proof (ninety percent (90%) absolute alcohol) shall be excise taxes paid on the purchased basestock (bunker) used in the manufacture of
deemed to have been removed for motive power, unless shown otherwise; excisable articles and forming part thereof shall be credited against the excise tax due
therefrom; and
(e) Naphtha, regular gasoline, pyrolysis gasoline and other similar products of
distillation, per liter of volume capacity, Ten pesos (P10.00): Provided, however, (m) Petroleum coke, per metric ton, Six pesos (P6.00): Provided, however, That,
That naphtha and pyrolysis gasoline, when used as a raw material in the reproduction petroleum coke, when used as feedstock to any power generating facility, per metric
of petrochemical products or in refining of petroleum products, or as replacement ton, zero (P0.00).
fuel for natural-gas-fired-combined cycle power plant in lieu of locally-extracted
natural gas during the non-availability thereof, subject to the rules and regulations to [150]
VETOED BY THE PRESIDENT
be promulgated by the Secretary of Finance, per liter of volume capacity, zero
(P0.00): Provided, further, That the production of petroleum products, whether or not
they are classified as products of distillation and for use solely for the production of For the period covering 2018 to 2020, the scheduled increase in the excise tax on fuel
gasoline shall be exempt from excise tax: Provided, finally, That the by-product as imposed in this Section shall be suspended when the average Dubai crude oil price
including fuel oil, diesel fuel, kerosene, pyrolysis gasoline, liquefied petroleum gases based on Mean of Platts Singapore (MOPS) for three (3) months prior to the
and similar oils having more or less the same generating power, which are produced scheduled increase of the month reaches or exceeds Eighty dollars (USD 80) per
in the processing of naphtha into petrochemical products shall be subject to the barrel.
applicable excise tax specified in this Section, except when such by-products are
transferred to any of the local oil refineries through sale, barter or exchange, for the Provided, That the Department of Finance shall perform an annual review of the
purpose of further processing or blending into finished products which are subject to implementation of the excise tax on fuel and shall, based on projections provided and
excise tax under this Section; recommendations of the Development budget coordination Committee, as reconciled
from the conditions as provided above, recommend the implementation or
(f) Unleaded premium gasoline, per liter of volume capacity, Ten pesos (P10.00); suspension of the excise tax on fuel: Provided, further, That the recommendation
shall be given on a yearly basis: Provided, finally, That any suspension of the
increase in excise tax shall not result in any reduction of the excise tax being
(g) Aviation turbo jet fuel, aviation gas, per liter of volume capacity, Four pesos imposed at the time of the suspension.[142]
(P4.00);
SEC. 148-A. Mandatory Marking of ALL Petroleum Products. [4] – In accordance
(h) Kerosene, per liter of volume capacity, Five pesos (P5.00): Provided, That with rules and regulations to be issued by the Secretary of Finance, in consultation
kerosene, when used as aviation fuel, shall be subject to the same tax on aviation with the Commissioner of Internal Revenue and Commissioner of Customs and in
turbo jet fuel under the preceding paragraph (g), such tax to be assessed on the user coordination with the Secretary of Energy, the Secretary of Finance shall require the
thereof; use of an official fuel marking or similar technology on petroleum products that are
refined, manufactured, or imported into the Philippines, and that are subject to the
(i) Diesel fuel oil, and on similar fuel oils having more or less the same generating payment of taxes and duties, such as but not limited to, unleaded premium gasoline,
power, per liter of volume capacity, Six pesos (P6.00); kerosene, and diesel fuel oil after the taxes and duties thereon have been paid. The
mandatory marking of all petroleum products shall be in accordance with the
(j) Liquefied petroleum gas, per kilogram, Three peso (P3.00): Provided, That following:
liquefied petroleum gas when used as raw material in the production of
petrochemical products, subject to the rules and regulations to be promulgated by the (a) Official Markers. – There shall be a list of chemical additives and corresponding
Secretary of Finance, shall be taxed zero (P0.00) per kilogram: Provided, finally, quantitative ratio as identified by the Secretary of Finance as official fuel
markers. The official fuel markers shall be distinct and, to the greatest degree the implementing agencies, and shall exclusively disbursed to defray the cost of
possible, impossible to imitate or replicate: Provided, That the official fuel marker services or equipment required to fully implement the said program, subject to rules
must be unique to the Philippines and that its chemical composition and quantitative and regulations to be issued by the DOF-DBM-COA permanent committee;
ratio must persist for at least three (3) years from their application or administration
to the unmarked fuel; (i) The marking of petroleum products shall be mandatory within five (5) years from
the effectivity of this Act; and
(b) The person, entity, or taxpayer who owns or enters the petroleum products into
the country, or the person to whom the petroleum products are consigned shall cause (j) The term ‘random field test’ shall refer to periodic random inspections and test
and accommodate the marking of the petroleum products with the official marking performed to establish qualitative and quantitative positive result of fuel trafficking,
agent; which are conducted on fuels found in warehouses, storage tanks, gas stations and
other retail outlets, and in such other properties or equipment, including mechanisms
(c) Internal revenue or customs officers shall be on site to administer the declaration of transportation of persons engaged in the sale, delivery, trading, transportation,
of the tax and duties imposed on the petroleum products and commence to the distribution, or importation of fuel intended for domestic market.
application of the fuel marking.
The term ‘confirmatory tests’ shall refer to the accurate and precise analytical test of
(d) Absences of Official or Dilution of the Official Market; Presumptions. – In the the tested unmarked, adulterated, or diluted fuel using a device, tool or equipment
event that the petroleum products which do not contain the official marker or which which will validate and confirm the result of the field test, that is immediately
contain the official market but are diluted beyond acceptable percentage approved by conducted in an accredited testing facility that is certified to ISO 17025. [151]
the Secretary of Finance are found in the domestic market or in the possession of
anyone, or under any situation where said petroleum products are subject to duties
and taxes, it shall be presumed that the same were withdrawn with the intention to
evade the payment of the taxes and duties due thereon;
(e) The use of fraudulent marker on the petroleum products shall be considered

prima facie evidence that the same have been withdrawn or imported without
payment of taxes and duties due thereon;
(f) Engagement of Fuel Marking Provider. – The government shall engage only one
fuel marking provider who shall, under the supervision and direction of the
Commissioner of Internal Revenue and Customs, be responsible for providing,
monitoring, and administering the fuel markers, provide equipment and devices,
conduct field and confirmatory tests, and perform such other acts incident or
necessary to the proper implementation of the provisions of this Act: Provided, That
the fuel marking provider shall provide an end-to-end solution to the Government,
including establishment and operation of testing facilities that are certified to ISO
17025;
(g) All costs pertaining to the procurement of the official markers shall be borne by
the refiner. Manufacturer or importer, of petroleum products, as the case may be:
Provided, That the government may subsidize the cost of official fuel markers in the
first year of implementation;
(h) Fuel Marking Program Funds. – In addition to any appropriation to implement

this Section and the last paragraph of Section 171 of this Act, fees or charges
collected in relation to the fuel marking program may be recorded as trust receipts of
As used in this Section-
(a) Automobile shall mean any four (4) or more wheeled motor vehicle regardless of
seating capacity, which is propelled by gasoline, diesel, electricity or any other
motive power. Provided, That for purposes of this Act, buses, trucks, cargo vans,
jeeps/jeepneys [152] substitutes, single cab chassis and special-purpose vehicles shall
not be considered as automobiles.
(b) Trucks/cargo van shall mean a motor vehicle of any configuration that is

exclusively designed for the carriage of goods and with any number of wheels and
axles: Provided, that pick-ups shall not be considered as trucks.[154]
(c) Jeepney/jeepney[152] substitutes shall mean as ”Philippine jeep or jeepney“ which

are of the jitney type locally designed and manufactured generally from surplus parts
and components. It shall also include jeepney substitutes that are manufactured from
brand-new single cab chassis or cowl chassis and locally customized rear body that
has continuous sideway row seats with open rear door and without retractable glass
CHAPTER VI windows.
EXCISE TAX ON MISCELLANEOUS ARTICLES (d) Bus shall mean a motor vehicle of any configuration with gross vehicle weight of
4.0 tons or more with any number of wheels and axles, which is generally accepted
SEC. 149. Automobiles. - There shall be levied, assessed and collected an ad and specifically designed for mass or public transportation.
valorem tax on automobiles based on the manufacturer’s or importer’s selling price,
net of excise and value-added tax, in accordance with the following schedule: (e) Single cab chassis shall mean a motor vehicle with complete engine power train
and chassis equipped with a cab that has a maximum of two (2) doors and only one
Effective January 1, 2018[152] (1) row of seats.
Net manufacturer’s price/importer’s selling Rate (f) Special purpose vehicle shall mean a motor vehicle designed for specific
applications such as cement mixer, fine truck, boom truck, ambulance and/or medical
Four percent unit, and off-road vehicles for heavy industries and not for recreational activities.
Up to Six hundred thousand pesos (P600,000)
(4%)
(g) Hybrid electric vehicle shall mean a motor vehicle powered by electric energy,
Over Six hundred thousand pesos (P600,000) to One Million Ten percent with or without provision for off-vehicle charging, in combination with gasoline,
pesos (P1,000,000) (10%) diesel or any other motive power. Provided, That, for purposes of this Act, a hybrid
electric vehicle must be able to propel itself from a stationary condition using solely
Twenty percent
Over One million pesos (P1,000,000) to Four Million pesos electric motor.[153]
(20%)
Fifty percent Provided, That in the case of imported automobiles not for sale, the tax imposed
Over Four Million pesos (P4,000,000) herein shall be based on the total landed value, including transaction value, customs
(50%)
duty and all other charges.
Provided, That hybrid vehicles shall be subject to fifty percent (50%) of the Automobiles used exclusively within the Freeport zone shall be exempt from excise
applicable excise tax rates on automobiles under this Section: Provided, further, That tax.
purely electric vehicles and pick-ups shall be exempt from excise tax on
automobiles.[153]
SEC. 150. Non-essential Goods. - There shall be levied, assessed and collected a tax (B) Definition of Terms. – As used in this Act:
equivalent to 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, (1) Sweetened beverages (SBs) refer to non-alcoholic beverages of any constitution
net of excise tax and value-added tax, of the following goods: (liquid, powder, or concentrates) that are pre-packaged and sealed in accordance with
the Food and Drug Administration (FDA) standards, that contain caloric and/or non-
(a) All goods commonly or commercially known as jewelry, whether real or caloric sweeteners added by the manufacturers, and shall include, but not limited to
imitation, pearls, precious and semi-precious stones and imitations thereof; goods the following, as described in the Food Category System from Codex Alimentarius
made of, or ornamented, mounted or fitted with, precious metals or imitations thereof Food Category Descriptors(Codex Stan 192-1995, Rev. 2017 or the latest) as
or ivory (not including surgical and dental instruments, silver-plated wares, frames or adopted by the FDA:
mountings for spectacles or eyeglasses, and dental gold or gold alloys and other
precious metals used in filling, mounting or fitting the teeth); opera glasses and (a) Sweetened juice drinks;
lorgnettes. The term ‘precious metals’ shall include platinum, gold, silver and other
metals of similar or greater value. The term ‘imitations thereof‘ shall include (b) Sweetened tea;
platings and alloys of such metals;
(c) All carbonated beverages;
(b) Perfumes and toilet waters;
(d) Flavored water;
(c) Yachts and other vessels intended for pleasure or sports.
(e) Energy and sports drinks;
SEC. 150-A. Non-essential Services. – There shall be levied, assessed, and collected
a tax equivalent to five percent (5%) based on the gross receipts derived from the
performance of services, net of excise tax and value-added tax, on invasive cosmetic (f) Other powdered drinks not classified as milk, juice, tea, and coffee;
procedures, surgeries, and body enhancements directed solely towards improving,
altering, or enhancing the patient’s appearance and do not meaningfully promote the (g) Cereal and grain beverages; and
proper function of the body or prevent or treat illness or disease. Provided, That this
tax shall not apply to procedures necessary to ameliorate a deformity arising from, or (h) Other non-alcoholic beverages that contain added sugar.
directly related to, a congenital or developmental defect or abnormality, a personal
injury resulting from an accident or trauma, or disfiguring disease, tumor, virus or (2) Caloric sweetener refers to a substance that is sweet and includes sucrose,
infection: Provided, further, That cases or treatments covered by the National Health fructose, and glucose that produces a certain sweetness;
Insurance Program shall not be subject to this tax.[155]
(3) High fructose corn syrup refers to a sweet saccharide mixture containing fructose
SEC. 150-B. Sweetened Beverages. – and glucose which is derived from corn and added to provide sweetness to
beverages, and which includes other similar fructose syrup preparations; and
(A) Rate and Base of Tax. – Effective January 1, 2018:
(4) Non-caloric sweetener refers to a substance that are artificially or chemically
(1) A tax of Six pesos (P6.00) per liter of volume capacity shall be levied, assessed processed that produces a certain sweetness. These are substances which can be
and collected on sweetened beverages using purely caloric sweeteners, and purely directly added to beverages, such as aspartame, sucralose, saccharin, acesulfame
non-caloric sweeteners, or a mix of caloric and non-caloric sweeteners: Provided, potassium, neotame, cyclmates and other non-nutritive sweeteners approved by the
further, That this tax rate shall not apply to sweetened beverages using high fructose Codex Alimentarius and adopted by the FDA.
corn syrup: Provided, further, That sweetened beverages using purely coconut sap
sugar and purely steviol glycosides shall be exempt from this tax; and (C) Exclusions. – The following products, as described in the food category system
from Codex Alimentarius Food Category Descriptors (Codex Stan 192-1995, Rev.
(2) A tax of Twelve pesos (P12.00) per liter of volume capacity shall be levied, 2017 or the latest) as adopted by the FDA, as excluded from the scope of this Act:
assessed, and collected on sweetened beverages using purely high fructose corn
syrup or in combination with any caloric or non-caloric sweetener.
(1) All milk products, including plain milk, infant formula milk, follow-on milk, amended. Any person who willfully aids or abets in the commission of any such act
growing up milk, powdered milk, ready-to-drink milk and flavored milk, fermented or omission shall be criminally liable in the same manner as the principal.
milk, soymilk, and flavored soymilk;
If not a citizen of the Philippines, the offender shall be deported immediately after
(2) One Hundred Percent (100%) Natural Fruit Juices – Original liquid resulting serving the sentence without further proceedings for deportation.
from the pressing of fruit, the liquid resulting from the reconstitution of natural fruit
juice concentrate, or the liquid resulting from the restoration of water to dehydrated (E) Specific Responsibility of the Food and Drug Administration (FDA). – Starting
natural fruit juice that do not have added sugar or caloric sweetener; June 1, 2018, the FDA shall require all manufacturers and importers of sweetened
beverages covered by this Act to indicate on the label the type of sweetener used, and
(3) One Hundred Percent (100%) Natural vegetable Juices – Original liquid resulting on sweetened beverages in powder form to indicate on the label the equivalent of
from the pressing of vegetables, the liquid resulting from the reconstitution of natural each serving per liter of volume capacity.
vegetables juice concentrate, or the liquid resulting from the restoration of water to
dehydrated natural vegetable juice that do not have added sugar or caloric sweetener; The FDA shall also conduct post-marketing surveillance of the sweetened beverages
on display in supermarkets, groceries or retail stores and/or inspection of
(4) Meal Replacement and Medically Indicated Beverages – Any liquid or powder manufacturing sites to determine compliance with the requirements of this
drink/product for oral nutritional therapy for persons who cannot absorb or Section. Violations of the provisions of this Act, including but not limited to,
metabolize dietary nutrients from food or beverages, or as source of necessary mislabeling or misbranding, shall, to the extent applicable, be punishable under
nutrition used due to a medical condition and an oral electrolyte solution for infants existing laws.
and children formulated to prevent dehydration due to illness; and
(F) Duty of the Commissioner to Ensure Payment of Taxes. – It shall be the duty of
(5) Ground coffee, instant soluble coffee, and pre-packaged powdered coffee the Commissioner, among other things, to prescribe a materially unique, secure and
products. nonremovable identifications, such as codes, stamps or other markings, to be firmly
and conspicuously affixed on and form part of the label of all excisable sweetened
(D) Filing of Return and Payment of Excise Tax and Penalty. – beverages.
(1) Filing of Return and Payment of Excise Tax on Domestic and Imported For this purpose, the abovementioned control measure shall be caused by the
Sweetened Beverages. – The provision of Sections 130 and 131 of the NIRC, as Commissioner to be printed with adequate security features to ensure the payment of
appropriate, shall apply to sweetened beverages. excise tax on sweetened beverages.
(2) Penalty. – Upon final findings by the Commissioner of Internal Revenue and/or (G) Review of Implementation of the Sweetened Beverage Tax. – At the start of the
Customs that any manufacturer or importer, in violation of this Section, misdeclares implementation of the sugar sweetened beverage tax and every year thereafter, the
or misrepresents in the sworn statement provided in Section 130(c) of the NIRC, as Department of Health, Department of Science and Technology, and Department of
amended, any pertinent data or information, the penalty of summary cancellation or Finance shall review the impact of these provisions on its health objectives with the
withdrawal of the permit to engage in business as manufacturer or importer of view to making recommendations on the tax rate on these beverages.[156]
sweetened beverages as provided under Section 268 of the NIRC, as amended, shall
be imposed.
violation of this Section shall be fined treble the amount of deficiency taxes,
surcharges, and interest which may be assessed pursuant to this Section.
Any persons liable for any of the acts or omissions prohibited under this Section
shall be criminally liable and penalized under Section 254 of the NIRC, as
Bureau of Customs in determining tariff and customs duties, net of excise tax and
value-added tax, in the case of importation.
Notwithstanding the provision of paragraph (4) of Subsection (A) of this Section,

locally extracted natural gas and liquefied natural gas shall not be subject to the
excise tax imposed herein.
(3) On all metallic minerals, a tax based on the actual market value of the gross
output thereof at the time of removal, in the case of those locally extracted or
produced; or the value used by the Bureau of Customs in determining tariff and
customs duties, net of excise tax and value-added tax, in the case of importation, in
accordance with the following schedule;
(a) Copper and other metallic minerals, four percent (4%);[161]
(b) Gold and chromite, four percent (4%).[161]
(4) On indigenous petroleum, a tax of six percent (6%)[162] 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 sale, barter, exchange or similar
CHAPTER VII 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
EXCISE TAX ON MINERAL PRODUCTS consultation with an appropriate government agency;
SEC. 151. Mineral Products. – 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,
(A) Rates of Tax. - There shall be levied, assessed and collected on minerals, mineral
bituminous shale and/or stratified mineral deposits.
products and quarry resources, excise tax as follows:
(B) For purposes of this Section, the term –
(1) On domestic or imported[157] coal and coke, notwithstanding any incentives
granted in any law or special law:
(1) ‘Gross output’ shall be interpreted as the actual market value of minerals or
mineral products or of bullion from each mine or mineral land operated as a separate
Effective January 1, 2018, Fifty pesos (P50.00) per metric ton; [158]
entity, without any deduction from mining, milling, refining (including all expenses
incurred to prepare the said minerals or mineral products in a marketable state), as
Effective January 1, 2019, One hundred pesos (P100.00) per metric ton;[159] and well as transporting, handling, marketing or any other expenses: Provided, That if the
minerals or mineral products are sold or consigned abroad by the lessee or owner of
Effective January 1, 2020, One hundred fifty pesos (P150.00) per metric ton.[160] the mine under C.I.F. terms, the actual cost of ocean freight and insurance shall be
deducted: provided, however, That in the case of mineral concentrate, not traded in
(2) On all nonmetallic minerals and quarry resources, a tax of four percent (4%) commodity exchanges in the Philippines or abroad, such as copper concentrate, the
[161]
based on the actual market value of the gross output thereof at the time of actual market value shall be the world price quotations of the refined mineral
removal, in the case of those locally extracted or produced; or the value used by the 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.
(2) ‘Minerals’ shall mean all naturally occurring inorganic substances (found in manufactured or partially manufactured products on hand and lawfully removed
nature) whether in solid, liquid, gaseous or any intermediate state. from the factory, plus waste removed or destroyed, and a reasonable allowance for
unavoidable loss in manufacture, the Commissioner may assess and collect the tax
(3) ‘Mineral products’ shall mean things produced and prepared in a marketable due on the products which should have been produced from the excess.
state by simple treatment processes such as washing or drying, but without
undergoing any chemical change or process or manufacturing by the lessee, The excise tax due on the products as determined and assessed in accordance with
concessionaire or owner of mineral lands. this Section shall be payable upon demand or within the period specified therein.
(4) ‘Quarry resources’ shall mean any common stone or other common mineral SEC. 154. Premises Subject to Approval by Commissioner. - No person shall
substances as the Director of the Bureau of Mines and Geo-Sciences may declare to engage in business as a manufacturer of or dealer in articles subject to excise tax
be quarry resources such as, but not restricted to, marl, marble, granite, volcanic unless the premises upon which the business is to conducted shall have been
cinders, basalt, tuff and rock phosphate: Provided, That they contain no metal or approved by the Commissioner.
other valuable minerals in economically workable quantities.
SEC. 155. Manufacturers and/or Importers to Provide Themselves with Counting
(C) Notwithstanding the foregoing, gold which is sold, or eventually sold, to the or Metering Devices to Determine Volume of Production and Importation. -
Bangko Sentral ng Pilipinas, in accordance with Section 32 (B)(7)(i), shall be exempt Manufacturers of cigarettes, alcoholic products, oil products and other articles
from the payment of excise tax: Provided, however, That if the excise tax due subject to excise tax that can be similarly measured shall provide themselves with
thereon had been paid prior to the sale of gold to the Bangko Sentral ng Pilipinas, the such necessary number of suitable counting or metering devices to determine as
taxpayer may file a claim for refund or credit with the Commissioner for the excise accurately as possible the volume, quantity or number of the articles produced by
tax paid.[163] them under rules and regulations promulgated by the Secretary of Finance, upon
recommendation of the Commissioner: Provided, That the Department of Finance
CHAPTER VIII shall maintain a registry of all petroleum manufacturers and/or importers and the
articles being manufactured and/or imported by them: Provided, further, That the
ADMINISTRATIVE PROVISIONS REGULATING BUSINESS OF PERSONS Department of Finance shall mandate the creation of a real-time inventory of
DEALING IN ARTICLES SUBJECT TO EXCISE TAX petroleum articles being manufactured, imported or found in storage depots of such
petroleum manufacturers and/or importers: Provided, finally, that importers of
finished petroleum products shall also provide themselves with Bureau-accredited
SEC. 152. Extent of Supervision Over Establishments Producing Taxable metering devices to determine as accurately as possible the volume of petroleum
Output. - The BIR has authority to supervise establishments where articles subject to products imported by them.[165]
excise tax are made or kept. The Secretary of Finance shall prescribe rules and
regulations in which the process of production shall be conducted insofar as may be
necessary to secure a sanitary output and to safeguard revenue, such rules and This requirement shall be complied with before commencement of operations.
regulations to safeguard revenue may allow the appointment of third parties to
monitor production and removal processes and volumes, and the exclusion of SEC. 156. Labels and Form of Packages. - All articles of domestic manufacture
exciseable goods from duty-free barter transactions. [164] subject to excise tax and all leaf tobacco shall be put up and prepared by the
manufacturer or producer, when removed for sale or consumption, in such packages
SEC. 153. Records to be Kept by Manufacturers; Assessment Based Thereon. - only and bearing such marks or brand as shall be prescribed in the rules and
Manufacturers of articles subject to excise tax shall keep such records as required by regulations promulgated by the Secretary of Finance; and goods of similar character
rules and regulations recommended by the Commissioner and approved by the imported into the Philippines shall likewise be packed and marked in such a manner
Secretary of Finance, and such records, whether of raw materials received into the as may be required.
factory or of articles produced therein, shall be deemed public and official
documents for all purposes. SEC. 157. Removal of Articles After the Payment of Tax. - When the tax has been
paid on articles or products subject to excise tax, the same shall not thereafter be
The records of raw materials kept by such manufacturers may be used as evidence by stored or permitted to remain in the distillery, distillery warehouse, bonded
which to determine the amount of excise taxes due from them, and whenever the warehouse, or other factory or place where produced. However, upon prior permit
amounts of raw material received into any factory exceeds the amount of from the Commissioner, oil refineries and/or companies may store or deposit tax-
paid petroleum products and commingle the same with its own manufactured SEC. 162. Records to be Kept by Dealers in Leaf Tobacco. - Dealers in leaf tobacco
products not yet subjected to excise tax. Imported petroleum products may be shall keep records of the products sold or delivered by them to other persons in such
allowed to be withdrawn from customs custody without the prepayment of excise manner as may be prescribed in the rules and regulations by the Secretary of
tax, which products may be commingled with the tax-paid or bonded products of the Finance, such records to be at all times subject to inspection of internal revenue
importer himself after securing a prior permit from the Commissioner: Provided, officers.
That withdrawals shall be taxed and accounted for on a “first-in, first-out’ basis.
SEC. 163. Preservation of Invoices and Stamps. - All dealers whosoever shall
SEC. 158. Storage of Goods in Internal-revenue Bonded Warehouses. - An preserve, for the period prescribed in Section 235, all official invoices received by
internal-revenue bonded warehouse may be maintained in any port of entry for the them from other dealers or from manufacturers, together with the fractional parts of
storing of imported or manufactured goods which are subject to excise tax. The taxes stamps affixed thereto, if any, and upon demand, shall deliver or transmit the same to
on such goods shall be payable only upon removal from such warehouse and a any interval revenue officer.
reasonable charge shall be made for their storage therein. The Commissioner, may,
in his discretion, exact a bond to secure the payment of the tax on any goods so SEC. 164. Information to be Given by Manufacturers, Importers, Indentors and
stored. Wholesalers of any Apparatus or Mechanical Contrivance Specially for the
Manufacture of Articles Subject to Excise Tax and Importers, Indentors,
SEC. 159. Proof of Exportation; Exporter's Bond. - Exporters of goods that would Manufacturers or Sellers of Cigarette Paper in Bobbins, Cigarette Tipping Paper
be subject to excise tax, if sold or removed for consumption in the Philippines, shall or Cigarette Filter Tips. - Manufacturers, indentors, wholesalers and importers of
submit proof of exportation satisfactory to the Commissioner, and, when the same is any apparatus or mechanical contrivance specially for the manufacture of articles
deemed necessary, shall be required to give a bond prior to the removal of the goods subject to tax shall, before any such apparatus or mechanical contrivance is removed
for shipment, conditioned upon the exportation of the same in good faith. from the place of manufacture or from the customs house, give written information
to the Commissioner as to the nature and capacity of the same, the time when it is to
SEC. 160. Manufacturers' and Importers' Bond. - Manufacturers and importers of be removed, and the place for which it is destined, as well as the name of the person
articles subject to excise tax shall post a bond subject to the following conditions: by whom it is to be used; and such apparatus or mechanical contrivance shall not be
set up nor dismantled or transferred without a permit in writing from the
(A) Initial Bond.- In case of initial bond, the amount shall be equal to One Hundred Commissioner.
thousand pesos (P100,000): Provided, That if after six (6) months of operation, the
amount of initial bond is less than the amount of the total excise tax paid during the "A written permit from the Commissioner for importing, manufacturing or selling of
period, the amount of the bond shall be adjusted to twice the tax actually paid for the apparatus or mechanical contrivance specially for the manufacture of articles subject
period. to excise tax,[166] cigarette paper in bobbins or rolls, cigarette tipping paper or
cigarette filter tips is required before any person shall engage in the importation,
(B) Bond for the Succeeding Years of Operation. - The bonds for the succeeding manufacture or sale of the said articles. No permit to sell said articles shall be
years of operation shall be based on the actual total excise tax paid during the period granted unless the name and address of the prospective buyer is first submitted to the
the year immediately preceding the year of operation. Commissioner and approved by him/her.[167] Records, showing the stock of the said
articles and the disposal thereof by sale of persons with their respective addresses as
approved by the Commissioner, shall be kept by the seller, and records, showing
Such bond shall be conditioned upon faithful compliance, during the time such stock of said articles and consumption thereof, shall be kept by the buyer, subject to
business is followed, with laws and rules and regulations relating to such business inspection by internal revenue officers."
and for the satisfaction of all fines and penalties imposed by this Code.
SEC. 165. Establishment of Distillery Warehouse. - Every distiller, when so
SEC. 161. Records to be Kept by Wholesale Dealers. - Wholesale dealers shall keep required by the Commissioner, shall provide at his own expense a warehouse, and
records of their purchases and sales or deliveries of articles subject to excise tax, in shall be situated in and constitute a part of his distillery premises and to be used only
such form as shall be prescribed in the rules and regulations by the Secretary of for the storage of distilled spirits of his own manufacture until the tax thereon shall
Finance. These records and the entire stock of goods subject to tax shall be subject at have been paid; but no dwelling house shall be used for such purpose. Such
all times to inspection of internal revenue officers. warehouse, when approved by the Commissioner, is declared to be a bonded
warehouse, and shall be known as a ‘distillery warehouse’.
SEC. 166. Custody of Distillery or Distillery Warehouse. - Every distillery or He may also stop and search any vehicle or other means of transportation when upon
distillery warehouse shall be in the joint custody of the revenue inspector, if one is reasonable grounds he believes that the same carries any article on which the excise
assigned thereto, and of the proprietor thereof. It shall be kept securely locked, and tax has not been paid.
shall at no time be unlocked or opened or remain unlocked or opened unless in the
presence of such revenue inspector or other person who may be designated to act for Subject to rules and regulations to be issued by the Secretary of Finance, the
him as provided by law. Commissioner of Internal Revenue or his authorized representatives may conduct
periodic random field tests and confirmatory tests on fuel required to be marked
SEC. 167. Limitation on Quantity of Spirits Removed from Warehouse. - No under Section 148-A found in warehouses, storage tanks, gas stations and other
distilled spirits shall be removed from any distillery, distillery warehouse, or bonded retails outlets, and in such other properties of persons engaged in the sale, delivery,
warehouse in quantities of less than fifteen (15) gauge liters at any one time, except trading, transportation, distribution, or importation of fuel intended for the domestic
bottled goods, which may be removed by the case of not less than twelve (12) market: Provided,
bottles.
(a) Random field testing shall be conducted in the presence of revenue or customs
SEC. 168. Denaturing Within Premises. - For purposes of this Title, the process of officers, fuel marking provider, and the authorized representative of the owner of the
denaturing alcohol shall be effected only within the distillery premises where the fuel to be tested: Provided, that an employee assigned or working at the place where
alcohol to be denatured is produced in accordance with formulas duly approved by the random field test is conducted shall be deemed an authorized representative of
the Bureau of Internal Revenue and only in the presence of duly designated the owner;
representatives of said Bureau.
(b) All field tests shall be properly filmed or video-taped, and documented; and
SEC. 169. Recovery of Alcohol for Use in Arts and Industries. - Manufacturers
employing processes in which denatured alcohol used in arts and industries is (c) A sample of the randomly tested fuel shall be immediately obtained by the
expressed or evaporated from the articles manufactured may, under rules and revenue or customs officer upon discovering that the same is unmarked, adulterated,
regulations to be prescribed by the Secretary of Finance, upon recommendation of or diluted:
the Commissioner, be permitted to recover the alcohol so used and restore it again to
a condition suitable solely for use in manufacturing processes. Provided, further, That confirmatory fuel test certificates issued by fuel testing
facilities shall be valid for any legal purpose from the date of issue, and shall
SEC. 170. Requirements Governing Rectification and Compounding of Liquors. - constitute admissible and conclusive evidence before any court.[168]
Persons engaged in the rectification or compounding of liquors shall, as to the mode
of conducting their business and supervision over the same, be subject to all the SEC. 172. Detention of Package Containing Taxable Articles. - Any revenue
requirements of law applicable to distilleries: Provided, That where a rectifier makes officer may detain any package containing or supposed to contain articles subject to
use of spirits upon which the excise tax has been paid, no further tax shall be excise tax when he has good reason to believe that the lawful tax has not been paid
collected on any rectified spirits produced exclusively therefrom: Provided, further, or that the package has been or is being removed in violation of law, and every such
That compounders in the manufacture of any intoxicating beverage whatever, shall package shall be held by such officer in a safe place until it shall be determined
not be allowed to make use of spirits upon which the excise tax has not been whether the property so detained is liable by law to be proceeded against for
previously paid. forfeiture; but such summary detention shall not continue in any case longer than
seven (7) days without due process of law or intervention of the officer to whom
SEC. 171. Authority of Internal Revenue Officer in Searching for and Testing such detention is to be reported.
Taxable Articles. [4] - Any internal revenue officer may, in the discharge of his
official duties, enter any house, building or place where articles subject to tax under
this Title are produced or kept, or are believed by him upon reasonable grounds to be
produced or kept, so far as may be necessary to examine, test, discover or seize the
same.

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TITLE VI of such products for the period from January 1, 1998 to June 30, 1998; within five

SEC. 136. Denaturation, Withdrawal and Use of Denatured Alcohol. - Any person

Sec. 143. Fermented Liquor. - [36] There shall be levied, assessed and collected an

Any brewer, manufacturer or importer who, in violation of this Section, misdeclares

be removed from their place of manufacture or exported without posting of an export

SEC. 147. Definition of Terms. - When used herein and in statements or official

(e) The use of fraudulent marker on the petroleum products shall be considered

(h) Fuel Marking Program Funds. – In addition to any appropriation to implement

(b) Trucks/cargo van shall mean a motor vehicle of any configuration that is

(c) Jeepney/jeepney[152] substitutes shall mean as ”Philippine jeep or jeepney“ which

Notwithstanding the provision of paragraph (4) of Subsection (A) of this Section,

(a) Copper and other metallic minerals, four percent (4%);[161]

(b) Gold and chromite, four percent (4%).[161]

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