Publishing Executive Order No. 674-A, Revising the Rates of Specific Tax on Locally-Produced Distilled Spirits, Wines, Compounded Liquors and Fermented Liquors

April 23, 1981 REVENUE MEMORANDUM CIRCULAR NO. 18-81 SUBJECT : Publishing Executive Order No. 674-A, Revising the Rates of Specific Tax on Locally-Produced Distilled Spirits, Wines, Compounded Liquors and Fermented Liquors TO : All Internal Revenue Officials, Employees and Others Concerned For the information and guidance of all concerned, quoted hereunder are the pertinent provisions of Executive Order No. 674-A: "Sec. 1. The rates of specific tax on locally-produced distilled spirits, wines and compounded liquors, and fermented liquors prescribed under Section 145(a); 146(b) to (h); and 147, respectively, of the National Internal Revenue Code are hereby revised effective on the dates hereunder indicated, to wit: Rate of Tax Effective Date "Sec. 145(a) " Domestic distilled spirits = P1.80/proof liter April 1, 1981 = 2.10/proof liter October 1, 1981 = 2.40/proof liter April 1, 1982 " Local spirits (or "lambanog") produced by small distiller = 1.17/proof liter April 1, 1981 = 1.36 1/2 proof liter October 1, 1981 = 1.56/proof liter April 1, 1982 "Sec. 146(b) " Domestic still wines containing 14% alcohol or less (except those manufactured from locally grown raw materials = 1.50 per liter April 1, 1981 = 1.75 per liter October 1, 1981 = 2.00 per liter April 1, 1982 " Imported still wines containing 14% alcohol or less = 3.30 per liter April 1, 1981 = 3.85 per liter October 1, 1981 = 4.40 per liter April 1, 1982 "(c) "Domestic still wines containing more than 14% alcohol = 3.00 per liter April 1, 1981 = 3.50 per liter October 1, 1981 = 4.00 per liter April 1, 1982 "Imported still wines containing more than 14% alcohol = P6.60 per liter April 1, 1981 = 7.70 per liter October 1, 1981 = 8.80 per liter April 1, 1982 "Imitation wines containing more than 25% of alcohol shall be taxed as distilled spirits at the new rates effective on the dates prescribed under this Executive Order. cd "(d) "Compounded liquors containing not more than 17 1/2% alcohol = P0.72 per liter April 1, 1981 = 0.84 per liter October 1, 1981 = 0.96 per liter April 1, 1982 "(e) "Compounded liquors containing more than 17 1/2% alcohol, but not more than 25% alcohol = P1.00 1/2 per liter April 1, 1981 = 1.17 1/4 per liter October 1, 1981 = 1.34 per liter April 1, 1982 "(f) "Compounded liquors containing more than 25% alcohol, but not more than 32 1/2% alcohol = P1.29 per liter April 1, 1981 = 1.50 1/2 per liter October 1, 1981 = 1.72 per liter April 1, 1982 "(g) "Compounded liquors containing more than 32 1/2% alcohol, but not more than 40% alcohol = P1.57 1/2 per liter April 1, 1981 = 1.83 3/4 per liter October 1, 1981 = 2.10 per liter April 1, 1982 "(h) "Compounded liquors containing more than 40% alcohol = P1.99 1/2 per liter April 1, 1981 = 2.32 3/4 per liter October 1, 1991 = 2.66 per liter April 1, 1982 "In computing the specific tax on compounded liquors at above rates effective on the dates above shown, the amount of specific tax paid on distilled spirits used in the compounding of such intoxicating beverage shall be credited against the tax due on the compounded liquors. Rate of Tax Effective Date "Beer, lager beer, ale, porter, and other fermented liquors (except tuba, basi, tapuy and similar domestic fermented liquors) = P0.90 per liter April 1, 1981 = 1.05 per liter October 1, 1981 = 1.20 per liter April 1, 1982 "If the fermented liquor is imported, the tax shall be increased by 100 per centum, hence, the tax shall be as follows: Rate of Tax Effective Date = P1.80 per liter April 1, 1981 = 2.10 per liter October 1, 1981 = 2.40 per liter April 1, 1982 "Sec. 2. The revised rates of specific tax shall take effect on the dates provided for under this Executive Order. "Done in the City of Manila, this 31st day of March, in the year of our Lord, nineteen hundred and eighty-one." Amendatory Features of Executive Order No. 674-A : Under Batas Pambansa Blg. 82, the rates of specific tax on distilled spirits, wines, compounded liquors and fermented liquors have been increased by 100% across-the-board, except for imported spirits and sparkling wines. However, said law has further provided that 50% of the increase shall take effect on the date of its approval (September 17, 1980) and that the remaining 50% or the full amount of the increase shall take effect on April 1, 1981. Executive Order No. 674-A has, however, revised the rates of specific tax on locally-produced distilled spirits, still wines, compounded liquors and fermented liquors in force from September 17, 1980, up to March 31, 1981. In revising the rates of specific tax on the alcoholic products concerned, Executive Order No. 674-A has, in effect, deferred the effectivity of the full amount of increase of specific tax on said articles from April 1, 1981, to April 1, 1982, but during the interim, the remaining 50% of such increase shall be imposed on a staggered basis as follows: cd i Inclusive Dates In Force : April 1, 1981 to September 30, 1981; Same rates in force as of March 31, 1981; October 1, 1981 to March 31, 1982; Rates in force as of April 1, 1981, plus 25% of the increase under Batas Pambansa Blg. 82; April 1, 1982 and thereafter. Rates in force as of March 31, 1982, plus the remaining 25% of the increase under the old law (BP Blg. 82). As a guide in the implementation of the tax implications of Executive Order No. 674-A, the following is a tabulated summary of the various rates of tax effective as a aforementioned dates: Effective Dates & Rates of Specific Tax Article April 1, 1981 Oct. 1, 1981 April 1, 1982 Sec. 145(b) Domestic distilled spirits P1.80/p.l. P2.10/p.l. P2.40/p.1. Local spirits (or lambanog) 1.17/p.l. 1.36 1/2/p.1. 1.56/p.l. [NB: P.L. stands for proof liter.] Sec. 146(b) Domestic still wines containing 14% alcohol or less (except those manufactured from locally grown raw materials.) 1.50/liter 1.75/liter 2.00/liter Imported wines containing 14% alcohol or less 3.30/liter 3.85/liter 4.40/liter (c) Domestic still wines containing more than 14% alcohol 3.00/liter 3.50/liter 4.00/liter Imported still wines containing more than 14% alcohol 6.60/liter 7.70/liter 8.80/liter Imitation wines containing more than 25% of alcohol shall be taxed as distilled spirits effective on the dates prescribed under the Executive Order. (d) Compound liquors containing 17 1/2% alcohol or less 0.72/liter 0.84/liter 0.96/liter (e) Compounded liquors containing more than 17 1/2% alcohol, but not more than 25% alcohol 1.00 1/2/liter 1.17 1/4/liter 1.34/liter (f) Compounded liquors containing more than 25% alcohol, but not more than 32 1/2% alcohol 1.29/liter 1.50 1/2/liter 1.72/liter (g) Compounded liquors containing more than 32 1/2% alcohol, but not more than 40% alcohol 1.57 1/2/liter 1.83 3/4/liter 2.10/liter (h) Compounded liquors containing more than 40% 1.99 1/2/liter 2.32 3/4/liter 2.66/liter In computing the specific tax on compounded liquors as prescribed under subparagraphs (d), (e), (f), (g) and (h) of this Section, the amount of specific tax paid on the distilled spirits used in the compounding of such intoxicating beverage shall be credited against the tax due on the compounded liquors herein defined and the tax shall attach to compounded liquors as soon as they are in existence as such. April 1, 1981 Oct. 1, 1981 April 1, 1982 Sec. 147 Beer, lager beer, ale, porter, and other fermented liquors (except "tuba", "basi" and "tapuy" and similar domestic fermented liquors) 0.90/liter 1.05/liter 1.20/liter If the fermented liquor is imported, the tax shall be increased by 100% 1.80/liter 2.10/liter 2.40/liter As clearly provided for under the Executive Order, the revised rates of specific tax shall take effect on the dates therein prescribed. All internal revenue officials, employees and others concerned are hereby enjoined to give this Revenue Memorandum Circular the widest publicity possible. RUBEN B. ANCHETA Acting Commissioner