AN ACT MODIFYING THE EXCISE TAX ON DISTILLED SPIRITS

Case Overview and Summary

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)