Publishing the Provisions of Republic Act No. 6956, Dated June 18, 1990, an Act, Modifying the Excise Tax on Distilled Spirits, Wines, Fermented Liquor and Cigarettes Amending Sections 138 (A) and (B), 139, 140 and 142 (C) and (D) of the National Internal Revenue Code, as Amended

June 28, 1990 REVENUE MEMORANDUM CIRCULAR NO. 053-90 SUBJECT : Publishing the Provisions of Republic Act No. 6956, Dated June 18, 1990, an Act, Modifying the Excise Tax on Distilled Spirits, Wines, Fermented Liquor and Cigarettes Amending Sections 138 (A) and (B), 139, 140 and 142 (C) and (D) of the National Internal Revenue Code, as Amended TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, the pertinent provisions of Republic Act No. 6956 are hereunder quoted: cdt "Sec. 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 produced in a pot still or other similar primary distilling apparatus, by a distiller producing not more than 100 liters a day, containing not more fifty percent (50%) of alcohol by volume, per proof liter, One peso and fifty-six centavos; "(b) If produced from raw materials other than those enumerated in the preceding paragraph, per proof liter, Thirty-five pesos; and" "Sec. 139. Wines . On wines, there shall be collected per liter of volume capacity, the following taxes: "(a) Sparkling wines regardless of proof, Twenty-six pesos; "(b) Still wines containing fourteen percent (14%) of alcohol by volume or less, Three pesos; and "(c) Still wines containing more than fourteen percent (14%) of alcohol by volume, Eight pesos. "Fortified wines containing more than twenty-five percent (25%) of alcohol by volume shall be taxed as distilled spirits. Fortified wines shall mean natural wines to which distilled spirits are added to increase their alcoholic strength." "Sec. 140. Fermented liquor . There shall be levied, assessed and collected an ad valorem tax equivalent to fifty percent (50%) upon the effectivity of this Act and sixty percent (60%) six (6) months thereafter of the brewer's wholesale price, excluding the ad valorem tax imposed under this section and the value added tax imposed under Title IV, on beer, lager beer, ale, porter and other fermented liquors except tuba, basi, tapuy and similar domestic fermented liquors, but in no case shall the sum total of the ad valorem tax and value-added tax be less than P1.00 per regular 320 ml. bottle." "Sec. 142. Cigar and Cigarettes . "(c) Cigarettes packed in twenties . There shall be levied, assessed and collected on cigarettes packed in twenties an ad valorem tax at the rates prescribed below based on the manufacturer's registered wholesale price: cd "(1) On locally manufactured cigarettes bearing a foreign brand, fifty-five percent (55%): Provided , That this rate shall apply regardless of whether or not the right to use or title to the foreign brand was sold or transferred by its owner to the local manufacturer. Whenever it has to be determined whether or not a cigarette bears a foreign brand, the listing of brands manufactured in foreign countries appearing in the current World Tobacco Directory shall govern. "(2) On other locally manufactured cigarettes, forty-five percent (45%). "Duly registered or existing brands of cigarettes packed in twenties shall not be allowed to be packed in thirties. cd "When the existing registered wholesale price, including tax, of cigarettes packed in twenties does not exceed P4.00 per pack, the rate shall be twenty percent (20%). "(d) Imported cigarettes . If the cigarettes are of foreign manufacture; regardless of the contents per pack, there shall be levied, assessed and collected an ad valorem tax of sixty-five (65%) of the importer's wholesale price and fifty-five percent (55%) beginning July 1, 1990. For purposes of this section, 'manufacturer's or importer's registered wholesale price" shall include the ad valorem tax imposed in paragraphs (a), (b), (c) or (d) hereof and the amount intended to cover the value-added tax imposed under Title IV of this Code. "Sec. 2. The Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, shall promulgate the necessary rules and regulations for the effective implementation of the provisions of this Act." "Sec. 3. Except as provided herein, this Act shall take effect fifteen (15) days following its publication in a newspaper of general circulation in the Philippines." aisa dc Salient Features of Republic Act 6956 A. Revision of specific tax rates on the following products: Old Rate New Rate 1. Distilled Spirits 1.1 If produced from sap of nipa, coconut, cassava, camote or buri palm or from the juice, syrup or sugar, etc. P3.20/proof liter P4.00/proof liter 1.2 If produced by a distiller producing not more than 100 liters a day, containing not more than 50% of alcohol by volume P1.00/p.l. P1.56/p.l. 1.3 If produced from raw materials other than those enumerated in the preceding paragraph P25.00/p.l. P35.00/p.l. 2. Wines 2.1 Sparkling wines regardless of proof P16.00/ P26.00/ gauge liter gauge liter 2.2 Still wines containing 14% alcohol or less by volume P1.00/g.l. P3.00/g.l. 2.3 Still wines containing more than 14% alcohol by Volume P4.00/g.l. P8.00/g.l. 2.4 Fortified wines containing more than 25% of alcohol by volume P3.20/p.l. P4.00/p.l. B. Revision in the ad valorem tax rate on Fermented liquor 1. Upon the effectivity of this Act, the ad valorem tax rate P37% 50% 2. Six months thereafter 50% 60% C. Revision in the ad valorem tax rates on certain cigarettes: Cigarettes packed in twenties (20's) 1. Locally-produced 1.1 Cigarettes bearing a Foreign brand 50% 55% 1.2 Cigarettes with a wholesale price that exceeds P4.00 per pack 40% 45% 1.3 Cigarettes with wholesale price that does not exceed P4.00 per pack 15% 20% 2. Imported cigarettes which take effect July 1, 1990 65% 55% The amendments covering all the above articles shall take effect on July 5, 1990 except in the case of imported cigarettes which shall take effect July 1, 1990. All internal revenue officers and others concerned are hereby enjoined to give this Revenue Memorandum Circular as wide a publicity as possible. (SGD.) JOSE U. ONG Commissioner of Internal Revenue