Excise tax
It is imposed on specific goods or service such as tobacco, fuel and alcohol
It is imposed on:
1. Certain goods manufactured or produce in the Philippines for domestic sale or consumption or
any other disposition
2. Certain goods imported
3. Certain service performed in the Philippines
Types of excise tax
Specific tax- imposed based on the weight or volume capacity
Specific tax= no. of units or other measurements x specific tax rate
Ad Valorem Tax- imposed based on selling price or other value of the goods
Ad valorem Tax= no. of units or other measurement x selling price x Ad Valorem Tax Rate
Major classification of excisable articles
1. Alcohol products
Distilled spirits
Wines
Fermented liquors
2. Tobacco products
Tobacco products
Cigars &Cigarettes
Inspection fee
3. Petroleum products
4. Miscellaneous article
Automobiles
Non-essential goods
Non-essential service
Sweetened beverages
5. Mineral products
Person liable to excise tax
1. In general:
a) On domestic or local articles
Manufacturer or Producer
Owner or person having possession of articles removed from the place of production
without the payment of the tax
b) On Imported articles
Importer
Owner
Person who is found in possession of articles which are exempt from excise taxes other
than those legally entitled to exemption
2. Others:
On Indigenous petroleum, natural gas or liquefied natural gas
Local sale, barter or transfer
First byer, purchaser or transferee
Exportation
Owner, lessee concessionaire or operator of the mining claim
Alcohol products
Definition of terms:
Alcohol products- Refers to fermented liquor, proof spirits wines, and/or spirits or distilled spirits
Fermented liquors- refers to beer, leger beer ale, porter and other fermented liquor regardless if
manufacture and/or sold at small establishment such as pubs and restaurant.
Proof spirits- refers to liquor containing ½ of its volume of alcohol of a specific gravity of 0.7939 at fifteen
degree centigrade.
Distilled spirits- such as ethyl alcohol, ethanol or spirited wine, including all dilutions, purification and
mixtures.
Excise tax on alcohol products
1. Distilled spirits
Excise tax due = Ad valorem tax + specific tax
Date of effectivity Ad Valorem Tax (based on net retail price) Specific tax (per proof liter)
Jan. 1, 2020 20% 24.34
Jan. 23, 2020 22% 42
Jan. 1, 2021 22% 47
Jan. 1, 2022 22% 52
Jan. 1, 2023 22% 59
Jan. 1, 2024 22% 66
2025 onwards 22% Specific rate shall increase by
6% and every year thereafter
2. Wines
Date of effectivity Specific tax (per liter)
Sparkling wines/champagnes where NRP per 750
ml volume capacity, regardless of proof is
a. less than 500 P 328.98
b. more than 500 P 921.15
still wines and carbonated wines containing 14% P 39.48
of alcohol by volume or less
still wines and carbonated wines containing more P 78.96
than 14% of alcohol by volume but not more than
25% of alcohol by volume
fortified wines containing more than 25% alcohol Taxed as distilled spirits
by volume
Jan. 23, 2020 P 50.00
Jan. 1, 2021 P 53. 00
Jan. 1, 2022 P 56.18
Jan. 1, 2023 P 59.55
Jan. 1, 2024 P 63.12
2025 onwards Specific rate shall increase by 6% and every year
thereafter
3. Fermented Liquors
Date of effectivity Specific tax (per liter)
Jan. 1, 2020 P 26.43
Jan. 23, 2020 P 35.00
Jan. 1, 2021 P37.00
Jan. 1, 2022 P 39.00
Jan. 1, 2023 P 41.00
Jan. 1, 2024 P 43.00
2025 onwards Specific tax rate shall be increased by 6% and
every year thereafter
Nicotine and non-nicotine products
There shall be levied, assessed and collected an excise tax on Vaporized Nicotine, non- nicotine product
and novel tobacco products.
A. Tobacco products, heated tobacco, vapor products and novel tobacco products
1. Heated tobacco products
Effectivity Quantity Excise tax
Jan. 1, 2020 Per pack of 20 units or any 10.00
Jan. 23, 2020 packaging combinations of 25.00
Jan. 1, 2021 not more than twenty (20) 27.50
Jan. 1, 2022 units 30.00
Jan. 1, 2023 32.50
Specific tax rate shall be
increased by 5% every year
effective jan. 1, 2024
2. Vaper products
a. Nicotine salt or salt nicotine
Effectivity Quantity Excise tax
Jan. 23, 2020 Per millimeter or a fraction 37.00
Jan. 1, 2021 thereof 42.00
Jan. 1, 2022 47.00
Jan. 1, 2023 52.00
2024 onwards Specific tax rate shall be
increased by 5% every year
effective jan. 1, 2024
b. Conventional ‘freebase’ or ‘classic’ Nicotine
Effectivity Quantity Excise tax
Jan. 23, 2020 Per millimeter or a fraction 45.00
Jan. 1, 2021 thereof 50.00
Jan. 1, 2022 55.00
Jan. 1, 2023 60.00
2024 onwards Specific tax rate shall be
increased by 5% every year
effective jan. 1, 2024
3. Novel tobacco products
Effectivity Quantity Excise tax
Aug. 10, 2022 Per kilogram 2.50
Jan. 1 2023 2.60
2024 onwards Rate shall be increase by 4%
every year effective Jan. 01,
2024
Floor Price
Minimum retail price set by BIR at which Vaporized Nicotine and non-nicotine products or novel tobacco
products may be sold, taking into account the sum of their excise tax, VAT and reasonable production cost
Minimum floor price= reasonable production cost + excise tax + VAT
Petroleum products
There shall be collected on refined and manufactured minerals oils and motor fuels
Automobiles
There shall be levied assessed and collected an ad valorem tax on automobiles based on the
manufacturer’s or importer’s selling price, net of excise tax and VAT.
Net manufacturer’s price/importer’s selling price Tax rates ( RA 10963 or the train
law)
Over Up to rate
0 600,000 4%
600,000 1,000,000 10%
1,100,000 4,000,000 20%
4,000,000 Over 50%
As used in this section
Automobile- 4 or more wheeled motor vehicles
Truck/cargo- motor vehicle exclusively designed for the carriage of goods
Jeepney- Philippine jeep or jeepney
Bus- motor vehicle with weight of 4.0 tons or more
Single cab- a motor vehicle with complete engine power train, maximum of two (2) doors and only one
(1) row of seats
Special purpose vehicle- motor vehicle designed for specific application such as cement mixer, fire truck
boom truck and ambulance.
Hybrid electric vehicle- motor vehicle powered by electric energy
