Publishing Presidential Decree No. 149, amending Section 137(b) of the National Internal Revenue Code, as earlier amended by Presidential Decrees Nos. 69 and 88, and further amending Section 156 of the same Code

June 6, 1973 REVENUE MEMORANDUM CIRCULAR NO. 29-73 SUBJECT : Publishing Presidential Decree No. 149, amending Section 137(b) of the National Internal Revenue Code, as earlier amended by Presidential Decrees Nos. 69 and 88, and further amending Section 156 of the same Code TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, quoted hereunder are pertinent portions of Presidential Decree No. 149, amending Section 137(b) of the Tax Code, prescribing new rates of specific tax on cigarettes and further resetting the effectivity thereof to July 1, 1973, and further amending Section 156 of the same Code: "1. That Section 137(b), Title IV of the National Internal Revenue Code, as amended, is hereby amended to read as follows: "Section 137. Specific Tax on Cigars and Cigarettes . On cigars and cigarettes there shall be collected the following taxes: xxx xxx xxx "(b) Cigarettes "(1) On cigarettes packed in thirties, the retail prices of which per pack does not exceed fifty centavos, on each thousand, three pesos. "(2) On cigarettes packed in thirties, the retail price of which per pack exceeds fifty centavos but does not exceed seventy centavos, on each thousand, five pesos. "(3) On cigarettes packed in twenties, the retail price of which per pack does not exceed eighty centavos, on each thousand, eight pesos. "(4) On cigarettes packed in twenties, the retail price of which per pack exceeds eighty centavos but does not exceed one peso, on each thousand, fourteen pesos. "(5) On cigarettes packed in twenties, the retail price of which per pack exceeds one peso but does not exceed one peso and forty centavos, in each thousand, sixteen pesos. "(6) On cigarettes packed in twenties, the retail price of which per pack exceeds one peso and forty centavos but does not exceed one peso and sixty centavos, on each thousand, eighteen pesos. "(7) On cigarettes packed in twenties, the retail price of which per pack exceeds one peso and sixty centavos, on each thousand, twenty-five pesos. "(8) If the cigarettes of local manufacture are mechanically wrapped or packed, the tax shall be increased by one hundred and twenty per centum per thousand cigarettes. "Cigarettes shall be considered as mechanically wrapped or packed when at any stage of the wrapping or packing a machine or any mechanical contrivance shall have been used. "(9) If the cigarettes are of foreign manufacture, the tax thereon shall be the same as that prescribed under sub-paragraph (7), paragraph (b) of this section, plus one hundred twenty per centum." xxx xxx xxx "2. That Section 156, Title IV, of the same Code is hereby amended to read as follows: "Section 156. Manufacturers' and importers' bond . Manufacturers and importers of articles subject to a specific tax shall give bond in an amount equal, as nearly as can be estimated, to twenty per centum of the taxes payable by them during an average year. Such bond shall be conditioned upon the faithful compliance, during the time such business is followed, with the law and regulations relating to such business and for the satisfaction of all fines and penalties imposed by this Code. No such bond shall be required in an amount exceeding five hundred thousand pesos nor be received in a sum less than ten thousand pesos." xxx xxx xxx "3. That Presidential Decree No. 88, amending the effectivity date of Section 5 of Presidential Decree No. 69, particularly Section 137 of the National Internal Revenue Code affecting Specific Tax on Cigars and Cigarettes is hereby further amended by resetting the effectivity of Section 137 of the National Internal Revenue Code, as amended, from March 1, 1973 to July 1, 1973." Features of the Amendments In accordance with the amendatory provisions of Presidential Decree No. 149, the following new rates of specific tax on cigarettes shall be effective July 1, 1973: Retail Price Range Tax per 1,000 (a) Packed in 30's: 1) P0.50 or less per pack P3.00 per M 2) Over P0.50 but not exceeding P0.70 per pack 5.00 per M (b) Packed in 20's: 3) P0.80 or less per pack 8.00 per M 4) Over P0.80 but not 14.00 per M exceeding P1.00 per pack 5) Over P1.00 but not 16.00 per M exceeding P1.40 per pack 6) Over P1.40 but not 18.00 per M exceeding P1.60 per pack 7) Over P1.60 per pack 25.00 per M 8) If the cigarettes of local manufacturer are mechanically wrapped or packed, the tax shall be increased by 120% per thousand cigarettes, thus: Basic Rate Increased Rate P3.00 per M (30's) P6.60 per M (30's) 5.00 per M (30's) 11.00 per M (30's) 8.00 per M (20's) 17.60 per M (20's) 14.00 per M (20's) 30.80 per M (20's) 16.00 per M (20's) 35.20 per M (20's) 18.00 per M (20's) 39.60 per M (20's) 25.00 per M (20's) 55.00 per M (20's) 9) If the cigarettes are of foreign manufacture, the tax thereon shall be the same as that prescribed under subparagraph (7), Section 137(b) of the Tax Code, as amended, plus 120%, thus: Basic Rate Increased Rate P25.00 per M (20's) P55.00 per M (20's) By virtue of the amendment to Section 156 of the same Code, the minimum and maximum amounts of bond required by law to be filed by manufacturers and importers of articles subject to specific tax, cigars, cigarettes and other manufactured tobacco products included, shall be as indicated hereunder: Old Law P.D. No. 69 P.D. No. 149 Minimum P1,000.00 P10,000.00 P10,000.00 Maximum 20% of taxes 20% of the taxes 20% of the taxes payable during payable during payable during an average year an average year an average year but not exceed- without any limiting but not exceeding ing P50,000.00. amount. P500,000.00. All internal revenue officers and others concerned are hereby enjoined to give this Revenue Memorandum Circular as wide publicity as possible. aisa dc MISAEL P. VERA Commissioner of Internal Revenue APPROVED: ALFREDO PIO DE RODA, JR. Acting Secretary