Publishing Sections 6, 7 and 50 of Presidential Decree No. 1950 Revising the Specific Tax Rate on Distilled Spirits and Imposing an Ad Valorem Tax on Fermented Liquors in Addition to the Specific Tax Levied Thereon

December 21, 1984 REVENUE MEMORANDUM CIRCULAR NO. 39-84 SUBJECT : Publishing Sections 6, 7 and 50 of Presidential Decree No. 1950 Revising the Specific Tax Rate on Distilled Spirits and Imposing an Ad Valorem Tax on Fermented Liquors in Addition to the Specific Tax Levied Thereon TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is quoted hereunder the pertinent provisions of Presidential Decree No. 1959 revising the specific tax rate on distilled spirits and imposing an ad valorem tax on fermented liquors in addition to the specific tax levied thereon. Sec. 6. Section 145 of this Code, as amended, is further amended to read as follows: "Sec. 145. Specific Tax on Distilled Spirits . On distilled spirits there shall be collected, subject to the provisions of Section 139 of this Code, except as hereinafter provided specific taxes as follows: (a) If produced from the sap of nipa, coconut, cassava, camote or buri palm or from the juice, syrup or sugar of the cane, per proof liter, five pesos . . ." Sec. 7. Section 147 of this Code, as amended, is further amended to read as follows: "Sec. 147. Specific and Ad Valorem Tax on Fermented Liquors . (b) Ad Valorem Tax . In addition to the specific tax herein imposed, there shall be levied, assessed and collected an ad valorem tax on fermented liquors of 20% of the brewer's or importer's gross selling price, net of specific tax. . . . Sec. 50. This Decree shall take effect on October 15, 1984; Provided, however , that with respect to the 20% ad valorem tax on fermented liquor under Section 7 of this Decree, 10% there of shall be imposed beginning October 15, 1984, and the remaining 10% ad valorem shall apply beginning January 1, 1985; and Provided, further , that the specific tax increases on distilled spirits . . . shall take effect beginning January 1, 1985 . cdt Features of the Amendments: OLD RATE NEW RATE Sec. 145 (a) - Distilled Spirits. If produced from the sap of nipa, coconut, cassava, P4.20/p.l. P5.00/p.l. camote or buri palm or from the juice, syrup or sugar of the cane. Sec. 147 (b) - Fermented P2.10/p.l. plus Liquors P2.10/p.l. ad valorem tax With respect to the 20% ad valorem tax fermented liquors, 10% thereof was imposed beginning October 15, 1984 and the remaining 10% ad valorem shall apply beginning January 1, 1985. casia On distilled spirits, the increase in specific tax rate from P4.20 to P5.00 per proof liter shall take effect beginning January 1, 1985. All internal revenue officers and others concerned are enjoined to be guided accordingly and to give this circular as wide a publicity as possible. (SGD.) RUBEN B. ANCHETA Acting Commissioner