AN ACT MODIFYING THE EXCISE TAX ON DISTILLED SPIRITS

Republic of the Philippines
Congress of the Philippines
Metro Manila

Eighth Congress

Republic Act No. 6956 June 18, 1990

AN ACT MODIFYING THE EXCISE TAX ON DISTILLED SPIRITS, WINES, FERMENTED LIQUOR AND CIGARETTES, AMENDING FOR THE PURPOSE SECTIONS 138(a) AND (b), 139, 140 AND 142(c) AND (d) OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

Section 1. Sections 138(a) and (b), 139, 140 and 142(c) and (d) of the National Internal Revenue Code, as amended, are hereby further amended to read as follows:

"Sec. 138. Distilled spirits. – On distilled spirits, there shall be collected, subject to the provisions of Section 130 of this Code, specific taxes as follows:

"(a) If produced from sap of nipa, coconut, cassava, camote or buri palm or from the juice, syrup or sugar of the cane, provided, such materials are produced commercially in the country where they are processed into distilled spirits, per proof liter, Four pesos: provided, that if...

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Summary of Republic Act No. 6956

Excise Tax on Distilled Spirits (Sec. 138):
- Distilled spirits from nipa, coconut, cassava, camote or buri palm, or from cane juice/syrup/sugar:
    - If produced commercially: ₱4 per proof liter (Sec. 138(a))
    - If produced in a pot still by a small distiller (≤100 liters/day, ≤50% alcohol by volume): ₱1.56 per proof liter (Sec. 138(a))
- Distilled spirits from other raw materials: ₱35 per proof liter (Sec. 138(b))

Excise Tax on Wines (Sec. 139):
- Sparkling wines (regardless of proof): ₱26 per liter (Sec. 139(a))
- Still wines ≤14% alcohol by volume: ₱3 per liter (Sec. 139(b))
- Still wines >14% alcohol by volume: ₱8 per liter (Sec. 139(c))
- Fortified wines (>25% alcohol by volume) taxed as distilled spirits (Sec. 139)

Excise Tax on Fermented Liquor (Sec. 140):
- 50% ad valorem tax on brewer's wholesale price upon effectivity, increasing to 60% after 6 months (Sec. 140)
- Excludes tuba, basi, tapuy and similar domestic fermented liquors (Sec. 140)
- Minimum tax of ₱1 per 320 ml bottle (Sec. 140)

Excise Tax on Cigarettes (Sec. 142):
- Locally manufactured cigarettes bearing a foreign brand: 55% ad valorem tax on manufacturer's registered wholesale price (Sec. 142(c)(1))
- Other locally manufactured cigarettes packed in twenties: 45% ad valorem tax on manufacturer's registered wholesale price (Sec. 142(c)(2))
- If existing registered wholesale price (including tax) ≤₱4 per pack of twenties: 20% ad valorem tax (Sec. 142(c))
- Imported cigarettes: 65% ad valorem tax on importer's wholesale price, reducing to 55% from July 1, 1990 (Sec. 142(d))
- "Manufacturer's or importer's registered wholesale price" includes ad valorem and value-added taxes (Sec. 142)

Other Provisions:
- Secretary of Finance to promulgate implementing rules and regulations (Sec. 2)
- Effectivity 15 days after publication in a newspaper of general circulation (Sec. 3)