EXCISE TAX
Excise Tax
ØApplies to goods manufactured or produced in the Philippines for
domestic sales, consumption or for any other disposition and to
things imported as well as services performed in the Philippines.
ØImposed on specific goods or services such as tobacco, fuel and
alcohol
Characteristics of Excise Tax
1. Tax on Consumption
2. Tax on production or importation of certain goods
3. Indirect tax
4. Additional Business Tax
5. Specific and ad valorem Tax
6. Has a regulatory overture
a. Environmental tax
b. Sumptuary tax
c. Sin tax
Types of Excise Tax
1. Specific Tax
Øimposed and based on weight or volume capacity or any other
physical unit of measurement
Specific Tax = # of Units X Specific Tax Rate
2. Ad Valorem Tax
Øimposed and based on selling price or other specified value of the
good or service performed
Ad Valorem Tax = # of Units X Selling Price X Ad Valorem Tax Rate
Filing of Return and Payment of Excise Tax
IN GENERAL:
ØEvery person liable to pay excise tax shall file a separate return for
each place of production BEFORE THE REMOVAL of the products
from place of production.
ØDomestic Products – Manufacturer or Producer
ØImported Products – Importer or Owner
ØShould domestic products be removed from the place of production
without the payment of the tax, the owner or person having
possession thereof shall be liable for the tax due thereon.
Filing of Return and Payment of Excise Tax
For indigenous petroleum, natural gas or liquefied natural gas:
ØLocal Sale, Barter or Transfer – tax shall be paid by the first buyer, purchaser
or transferee
ØExported products – tax shall be paid by the owner, lessee, concessionaire or
operator of the mining claim.
For Non-essential services
ØTaxable at the point of sale
Filing of Return and Payment of Excise Tax
For Nonmetallic mineral or mineral products, or quarry resources
Øshall be due and payable upon removal of such products from the locality
where mined or extracted
For Metallic mineral or mineral products,
Øthe 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
For imported mineral or mineral products (Metallic or Nonmetallic),
Øthe excise tax due shall be paid before their removal from customs custody.
Filing of Return and Payment of Excise Tax
Except as the Commissioner otherwise permits, the return shall be filed
with and the tax paid to any authorized agent bank or Revenue
Collection Officer, or duly authorized City or Municipal Treasurer in the
Philippines.
BIR Form: 2200
Manufacturer or Producer’s Sworn Statement
Every manufacturer or producer of goods or products subject to excise
taxes shall file a sworn statement showing the following information:
1. The different goods or products manufactured or produced;
2. Their corresponding gross selling price or market value;
3. The cost of manufacture or production plus expenses incurred or to
be incurred until the goods or products are finally sold.
Credit for Excise Tax on Goods Actually
Exported
When goods locally produced or manufactured are removed and actually
exported without returning to the Philippines, whether so exported in their
original state or as ingredients or parts of any manufactured goods or
products, any excise tax paid thereon shall be credited or refunded upon
submission of the proof of actual exportation and upon receipt of the
corresponding foreign exchange payment
Exempt:
Excise tax on mineral products, except coal and coke, shall not be creditable
or refundable even if the mineral products are actually exported.
Basis of Ad Valorem Tax
Locally Produced
ØGross Selling Price (Wholesale Price, net of VAT, before removal
from place of production)
Imported Goods
ØGross Selling Price or specifically indicated (before release from
custom’s custody)
Major Classification of Excisable Articles
1. Alcohol Products
2. Tobacco Products
3. Petroleum Products
4. Minerals
5. Miscellaneous Articles
a. Automobiles
b. Non-essential Goods
c. Non-essential Services
d. Sweetened Beverages
Alcohol Products
1. Distilled Spirits
ØAd Valorem Rate – 22% of Net Retail Price (excluding Excise and VAT)
ØSpecific Tax – P66 per Proof Liter (as of Jan. 1, 2024); P7 increase every year
2. Wines (All Kinds)
ØP63.12 (as of Jan. 1, 2024); 6% increase every year
3. Fermented Liquors (All Kinds)
ØP43 (as of Jan. 1, 2024); P2 increase every year
Alcohol Products
1 Proof Liter = ½ of % Volume of Alcohol
Net retail price shall mean the price at which the distilled spirits is sold
on retail in at least five (5) major supermarkets in Metro Manila,
excluding the amount intended to cover the applicable excise tax and
the value-added tax.
Tobacco Products
1. Tobacco Products
a. Tobacco twisted by hand or reduced into a condition to be consumed in any
manner other than the ordinary mode of drying and curing;
b. Tobacco prepared or partially prepared with or without the use of any
machine or instruments or without being pressed or sweetened except as
otherwise provided hereunder; and
c. Fine-cut shorts and refuse, scraps, clippings, cuttings, stems and sweepings
of tobacco except as otherwise provided hereunder.
P2.50/kg (as of Jan. 1, 2022); 4% increased every year
Tobacco Products
2. Chewing Tobacco
P2.30/kg (as of Jan. 1, 2024); 4% increase every year
3. Cigars
ØAd Valorem rate – 21% NPR/cigar (as of Jan. 1, 2024); 5% increase every year
ØSpecific Tax – P7.75/cigar (as of Jan. 1, 2024); 5% increase every year
4. Cigarettes
P63/pack of 20s (as of Jan. 1, 2024); 5% increase every year
Tobacco Products
5. Heated Tobacco Products
P32.50/pack of 20s (as of Jan. 1, 2023); 5% increase every year
6. Vapor Products
ØNicotine Salt – P52/mL (as of Jan. 1, 2023); 5% increase every year
ØFreebase or Classic – P60/ 10mL (as of Jan. 1, 2023); 5% increase every year
7. Novel Tobacco Products
P2.70/kg (as of Jan. 1, 2024); 4% increase every year
Tobacco Inspection Fee
Removal of Wines and distilled Spirits for
Treatment of Tobacco Leaf
Manufacturers of cigars and cigarettes may withdraw, free of excise
tax, local and imported wines and distilled spirits in specific quantities
and grades for use in the treatment of tobacco leaf to be used in the
manufacture of cigars and cigarettes; but such wines and distilled
spirits must first be suitably denatured.
Domestic Denatured Alcohol
Domestic alcohol of not less than one hundred eighty degrees (180°)
proof (ninety percent (90%) absolute alcohol) shall, when suitably
denatured and rendered unfit for oral intake, be exempt from the
excise tax, provided:
a. If exported, subject to zero-rated sales
b. If used as a motive power, subject to excise tax for petroleum
c. If subsequently rendered fit for oral intake, subject to excise tax for
distilled spirits
Petroleum Products
a. Used for Fuel (Diesel, Bunker, Petroleum Coke)
Ø P6 per Liter
b. Used for Aviation
Ø P4 per Liter
c. Kerosene
Ø P5 per Liter
d. Liquified Petroleum Gas
Ø P3 per Kg;
Ø If used for motive power – tax as Diesel
e. Others (Lubricants, processed gas, waxes, unleaded gasoline, asphalts)
Ø P10 per Liter/Kg
Exempt:
If used as raw materials or used for the production of petrochemical products
Minerals
a. Coal and Coke
Ø P150 / MT
b. Non-metallic minerals & quarry resources (Diamond, Limestone)
Ø 4% based on the actual market value of the gross output or the value used by the Bureau of
Customs in determining tariff and customs duties
c. Metallic minerals (Copper, Gold, Chromite)
Ø 4% based on the actual market value of the gross output or the value used by the Bureau of
Customs in determining tariff and customs duties
d. Indigenous Petroleum
Ø 6% of the fair international market price thereof, on the first taxable sale, barter, exchange
(transfer of indigenous petroleum in its original state to a first taxable transferee)
e. Natural Gas & Liquified Natural Gas
Ø Exempt
Miscellaneous Articles
a. Automobiles
Manufacturer’s or Importer’s Selling Price Tax Rate
Up to P600,000 4%
P600,000 – P1,000,000 10%
P1,000,000 – P4,000,000 20%
Over P4,000,000 50%
NOTE:
ØIf Hybrid vehicles, subject to 50% of the applicable excise tax
ØPurely Electric vehicles, EXEMPT
ØIf use for utility (pick-ups), EXEMPT
Miscellaneous Articles
b. Non-essential Goods
1. Jewelry (whether real or imitation)
2. Perfumes & Toilet waters
3. Yachts & other vessels used for pleasure or sports
Ø20% based on the wholesale price or the value of importation
Miscellaneous Articles
c. Non-essential Services
ØInvasive cosmetic procedures, surgeries, and body enhancements
directed solely towards improving, altering, or enhancing the
patient’s appearance and do not meaning fully promote the
proper function of the body or prevent or treat illness or disease
Ø5% of Gross Receipts net of excise tax and VAT
Miscellaneous Articles
d. Sweetened Beverages
1. Purely Caloric & Purely Non-caloric sweeteners or a mix thereof
ØP6 per liter
2. Purely high fructose corn syrup or mix with caloric or non-caloric
ØP12 per liter
3. Purely coconut sap sugar and purely steviol glycosides
ØEXEMPT
NOTE:
Sweetened beverages does not include Milk products, Coffee products,
Soymilk, 100% Natural fruit juices/vegetable juices, Meal replacements and
Medically indicated beverages
