Revising the Retail Prices and Specific Taxes on Local and Imported Cigarettes
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Revising the Retail Prices and Specific Taxes on Local and Imported Cigarettes
Executive Order No. 863
December 26, 1982
Case Overview and Summary
Summary of Executive Order No. 863Revision of Retail Prices and Specific Taxes on Local and Imported Cigarettes
• Amends Section 149(b) of the National Internal Revenue Code to revise the specific tax rates and maximum retail prices for local and imported cigarettes.
Local Cigarettes:
- Packed in thirties:
• Retail price ≤ P1.10 per pack: P3.00 per thousand sticks. [Sec. 1(b)(1)]
• Retail price > P1.10 but ≤ P1.45 per pack: P5.00 per thousand sticks. [Sec. 1(b)(2)]
• Retail price > P1.45 per pack: P8.00 per thousand sticks. [Sec. 1(b)(3)]
- Packed in twenties:
• Retail price ≤ P1.85 per pack: P17.00 per thousand sticks. [Sec. 1(b)(4)]
• Retail price > P1.85 but ≤ P2.15 per pack: P23.00 per thousand sticks. [Sec. 1(b)(5)]
• Retail price > P2.15 but ≤ P2.45 per pack: P25.00 per thousand sticks. [Sec. 1(b)(6)]
• Retail price > P2.45 but ≤ P2.85 per pack: P28.00 per thousand sticks. [Sec. 1(b)(7)]
• Retail price > P2.85 but ≤ P3.25 per pack: P40.00 per thousand sticks. [Sec. 1(b)(8)]
• Retail price > P3.25 but ≤ P3.75 per pack: P48.00 per thousand sticks. [Sec. 1(b)(9)]
• Retail price > P3.75 per pack: P48.00 per thousand sticks. [Sec. 1(b)(10)]
- For locally manufactured cigarettes of foreign brands or trademarks under licensing agreements, the tax shall be increased by 50% per thousand sticks. [Sec. 1(b)(11)]
• The maximum retail price for these cigarettes may be increased beyond the corresponding price bracket, but not exceeding the amount of the 50% surcharge.
Imported Cigarettes:
- Regardless of retail price or contents per pack, P92.00 per thousand sticks. [Sec. 1(b)(12)]
Other Provisions:
• No downward reclassification of existing cigarette brands is allowed when there is a change in tax rates or retail price ceilings. [Sec. 1(b)]
• Existing brands packed in twenties cannot be repacked in thirties. [Sec. 1(b)]
• Manufacturers or importers must file sworn statements with the Commissioner of Internal Revenue showing the maximum wholesale prices, cost of manufacture or importation, and approved maximum retail prices. [Sec. 1(b)]
• Packs of locally manufactured cigarettes must bear the maximum retail price in print. [Sec. 1(b)]
• Penalties for misdeclaration or misrepresentation in sworn statements, including cancellation of permit and deportation for alien violators. [Sec. 1(b)]
• Effective date: January 1, 1983. [Sec. 1]
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cigarettes
tobacco
tax rates
retail prices
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twenties
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tax surcharge
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Law
Revising the Retail Prices and Specific Taxes on Local and Imported Cigarettes
Executive Order No. 863
•December 26, 1982
EXECUTIVE ORDER NO. 863 December 26, 1982
REVISING THE RETAIL PRICES AND SPECIFIC TAXES ON LOCAL AND IMPORTED CIGARETTES
WHEREAS, the increasing cost of production of local cigarettes has rendered the existing statutory maximum retail prices unrealistic, leaving the manufacturers insufficient leeway for any price adjustments;
WHEREAS, it becomes imperative to revise the present statutory maximum retail prices and provide new specific tax rates on local and imported cigarettes to maintain the economic equilibrium for the manufacturers and at the same time generate additional revenue for the government.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, pursuant to the powers vested in me under Sec. 290-B of the National Internal Revenue Code, as amended, do hereby direct and order that:
Sec. 1. Section 149 (b) of the National Internal Revenue Code, as amended, be amended to read as follows:
"(b) Cigarettes
"(1) On cigarettes packed in thirties, the retail price of which per pack does not exceed one peso and ten centavos, on each thousand, three pesos;
"(2) On cigarettes packed in thirties,...
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Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Executive Orders
cigarettes
tobacco
tax rates
retail prices
local cigarettes
imported cigarettes
packs
thirties
twenties
foreign brands
licensing agreements
tax surcharge
tax brackets
sworn statements
revenue stamps
penalties
violations
deportation
EXECUTIVE ORDER NO. 863 December 26, 1982
REVISING THE RETAIL PRICES AND SPECIFIC TAXES ON LOCAL AND IMPORTED CIGARETTES
WHEREAS, the increasing cost of production of local cigarettes has rendered the existing statutory maximum retail prices unrealistic, leaving the manufacturers insufficient leeway for any price adjustments;
WHEREAS, it becomes imperative to revise the present statutory maximum retail prices and provide new specific tax rates on local and imported cigarettes to maintain the economic equilibrium for the manufacturers and at the same time generate additional revenue for the government.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, pursuant to the powers vested in me under Sec. 290-B of the National Internal Revenue Code, as amended, do hereby direct and order that:
Sec. 1. Section 149 (b) of the National Internal Revenue Code, as amended, be amended to read as follows:
"(b) Cigarettes
"(1) On cigarettes packed in thirties, the retail price of which per pack does not exceed one peso and ten centavos, on each thousand, three pesos;
"(2) On cigarettes packed in thirties,...
Login to see full content