Publishing Executive Order No. 1018 Introducing a New Tax Bracket for Local Virginia Cigarettes Packed in Twenties and Providing the Specific Tax Due Thereon

April 19, 1985 REVENUE MEMORANDUM CIRCULAR NO. 10-85 SUBJECT : Publishing Executive Order No. 1018 Introducing a New Tax Bracket for Local Virginia Cigarettes Packed in Twenties and Providing the Specific Tax Due Thereon TO : All Internal Revenue Officials and Others Concerned For the information and guidance of all concerned, hereunder are the salient features of Executive Order No. 1018, dated April 11, 1985: I. It restructured the present tax brackets of locally manufactured cigarettes packed in twenties without affecting however, native- type cigarettes packed in thirties (30's), by introducing a new tax rate of P12.00 per thousand on cigarettes with a maximum retail price of P3.50 per pack. The new tax rate is an intermediate specific tax bracket between the highest priced native cigarettes which is taxed at P9.00 per thousand and the lowest priced local virginia cigarettes taxes at P25.00 per thousand. As revised by Executive Order No. 1018, the new tax brackets of locally manufactured cigarettes packed in twenties are as follows: Maximum Tax Rates Retail Price Per Pack Per Thousand/Per Pack Exceeding Not Exceeding - P 3.50 P12.00 P 0.24 P3.50 4.50 25.00 0.50 4.50 5.60 35.00 0.70 5.60 6.80 40.00 0.80 6.80 7.50 57.50 1.15 7.50 8.00 80.00 1.60 8.00 9.00 114.00 2.28 9.00 151.00 3.02 Imported Cigarettes: Regardless of Retail Price 151.00 3.02 II. It also revised the maximum retail price of local virginia cigarettes under the P25.00 per thousand class which heretofore has a retail selling price in any amount for as long as it does not exceed P4.50 per pack. Under Executive Order No. 1018 the said selling price can no longer be possible because it has to be over P3.50 but not more than P4.50 per pack to remain in that tax bracket. cd i III. The safeguards and the specific requirements under the existing provisions of Section 149 as well as the imposition of the Ad valorem tax on cigarettes under Section 186-A of the National Internal Revenue Code, as amended, were retained in Executive Order No. 1018. IV. The provisions of Executive Order No. 1018 shall take effect immediately. All internal revenue officials, employees and others concerned are hereby enjoined to give this Revenue Memorandum Circular the widest publicity possible. cdt TOMAS C. TOLEDO Acting Commissioner