Creation, Modification and Dropping of Alphanumeric Tax Code (ATC) on Excise Tax Pursuant to Republic Act No. 10351, "An Act Restructuring the Excise Tax on Alcohol and Tobacco Products" as Implemented by Revenue Regulations No. 17-2012

June 27, 2013 REVENUE MEMORANDUM ORDER NO. 017-13 SUBJECT : Creation, Modification and Dropping of Alphanumeric Tax Code (ATC) on Excise Tax Pursuant to Republic Act No. 10 351, "An Act Restructuring the Excise Tax on Alcohol and Tobacco Products" as Implemented by Revenue Regulations No. 17-20 12 TO : All Collection Agents, Revenue District Officers and Other Internal Revenue Officers Concerned I. Objective : To facilitate the proper identification and monitoring of Excise Tax payments pursuant to Republic Act No. 10351, as implemented by Revenue Regulations No. 17-2012 dated December 21, 2012, the following ATCs are hereby created, modified and dropped. aDHCEA II. The following ATCs are hereby created: ATC Description Legal Basis Tax Rate BIR Form No. A. Alcohol Products (1) Distilled Spirits XA035 (a) Ad Valorem Tax Rate Based on the Net Retail R.A. 10351 as Per NRP per proof 2200-A/0605 Price per proof (excluding implemented by the excise and value-added RR No. 17-2012 taxes), and Effective January 1, 2013 Sec. 1.a.1 15% Effective January 1, 2014 Sec. 1.a.1 15% Effective January 1, 2015 Sec. 1.b.1 20% Effective January 1, 2016 Sec. 1.c. 20% Effective January 1, 2017 Sec. 1.c. 20% 2018 Onwards Sec. 1.c. 20% XA036 (b) Specific Tax R.A. 10351 as Per proof liter 2200-A/0605 implemented by RR No. 17-2012 Effective January 1, 2013 Sec. 1.a.2. P20.00 Effective January 1, 2014 Sec. 1.a.2. P20.00 Effective January 1, 2015 Sec. 1.b.2. P20.00 Effective January 1, 2016 * Sec. 1.c. P20.80 Effective January 1, 2017 Sec. 1.c. P21.63 * Effective 1/1/2016, the specific tax rate shall be increased by 4% every year thereafter (2) Fermented liquors, where the Net Retail Price (excluding excise and value-added taxes) per liter of volume capacity is: XA055 (a) Fifty Pesos and Sixty R.A. 10351 as Per liter 2200-A/0605 Centavos (P50.60) or less implemented by RR No. 17-2012 Effective January 1, 2013 Sec. 3.a. P15.00 P15.49 * Effective January 1, 2014 Sec. 3.a. P17.00 Effective January 1, 2015 Sec. 3.a. P19.00 Effective January 1, 2016 Sec. 3.a. P21.00 Effective January 1, 2017 Sec. 3 P23.50 2018 Onwards Sec. 3 Effective 1/1/2018, the specific tax rate shall be increased by 4% every year thereafter * Applicable to the fermented liquor(s) that are affected by the 'no downward reclassification' provision of R.A. No. 10351 XA056 (b) More than Fifty Pesos and R.A. 10351 as Per liter 2200-A/0605 Sixty Centavos (P50.60) implemented by RR No. 17-2012 Effective January 1, 2013 Sec. 3.b. P20.00 P20.57 * Effective January 1, 2014 Sec. 3.b. P21.00 P21.39 * Effective January 1, 2015 Sec. 3.b. P22.00 P22.25 * Effective January 1, 2016 Sec. 3.b. P23.00 P23.14 * Effective January 1, 2017 Sec. 3 P23.50 2018 Onwards Sec. 3 Effective 1/1/2018, the specific tax rate shall be increased by 4% every year thereafter * Applicable to the fermented liquor(s) that are affected by the 'no downward reclassification' provision of R.A. No. 10351 XA057 (c) Fermented liquors brewed and R.A. 10351 as Per liter 2200-A/0605 sold at microbreweries or small implemented by establishments such as pubs RR No. 17-2012 and restaurants, regardless of the Net Retail Price Effective January 1, 2013 Sec. 3 P28.00 Effective January 1, 2014 * Sec. 3 P29.12 Effective January 1, 2015 Sec. 3 P30.28 Effective January 1, 2016 Sec. 3 P31.50 Effective January 1, 2017 Sec. 3 P32.76 * Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter B. Tobacco Products (1) Cigars XT035 (a) Ad Valorem Tax Rate Based on the Net Retail Price R.A. 10351 as Per NRP per cigar 2200-T/0605 per cigar (excluding the excise implemented by and value-added taxes), and RR No. 17-2012 Effective January 1, 2013 Sec. 5.A.1.a. 20% Effective January 1, 2014 Sec. 5.A.1.a. 20% Effective January 1, 2015 Sec. 5.A.1.a. 20% Effective January 1, 2016 Sec. 5.A.1.a. 20% Effective January 1, 2017 Sec. 5.A.1.a. 20% XT036 (b) Specific Tax R.A. 10351 as Per cigar 2200-T/0605 implemented by RR No. 17-2012 Effective January 1, 2013 Sec. 5.A.1.b. P5.00 Effective January 1, 2014 * Sec. 5.A.2. P5.20 Effective January 1, 2015 Sec. 5.A.2. P5.41 Effective January 1, 2016 Sec. 5.A.2. P5.62 Effective January 1, 2017 Sec. 5.A.2. P5.85 * Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter (2) Cigarettes packed by machine, where the Net Retail Price (excluding excise and value-added taxes) per pack is: XT140 (a) Eleven Pesos and Fifty R.A. 10351 as Per pack 2200-T/0605 Centavos (11.50) and below implemented by RR No. 17-2012 Effective January 1, 2013 Sec. 5.C.1. P12.00 Effective January 1, 2014 Sec. 5.C.1. P17.00 Effective January 1, 2015 Sec. 5.C.1. P21.00 Effective January 1, 2016 Sec. 5.C.1. P25.00 Effective January 1, 2017 Sec. 5.C. P30.00 2018 Onwards Sec. 5.C. Effective 1/1/2018, the specific tax rate shall be increased by 4% every year thereafter XT150 (b) More than Eleven Pesos R.A. 10351 as Per pack 2200-T/0605 and Fifty Centavos (11.50) implemented by RR No. 17-2012 Effective January 1, 2013 Sec. 5.C.2. P25.00 Effective January 1, 2014 Sec. 5.C.2. P27.00 Effective January 1, 2015 Sec. 5.C.2. P28.00 Effective January 1, 2016 Sec. 5.C.2. P29.00 Effective January 1, 2017 Sec. 5.C. P30.00 2018 Onwards Sec. 5.C. Effective 1/1/2018, the specific tax rate shall be increased by 4% every year thereafter III. The following ATCs will have a modified description: Existing (per ATC Handbook) Modified/New ATC Description Tax Legal ATC Description Tax Rate Legal Basis BIR Rate Basis Form No. A. Alcohol Products A. Alcohol Products (1) Wines Per liter (1) Wines Per liter A. Sparkling A. Sparkling wines/champagnes wines/champagnes, The tax shall be in where the net retail price accordance with the net (excluding the excise and retail price (excluding value-added taxes) per bottle the excise and value- of 750 ml, regardless of added taxes) per bottle, proof is: regardless of proof, as follows: XA061 (1) Five Hundred Pesos P145.60 Sec. XA061 (1) Five Hundred Pesos R.A. 10351 as 2200-A/ (P500.00) or less 142 (a) (1) (P500.00) or less implemented by 0605 of RA No. RR No. 17-2012 9334 Effective January 1, 2013 P250.00 Sec. 2.a.1. Effective January 1, 2014 * P260.00 Sec. 2. Effective January 1, 2015 P270.40 Sec. 2. Effective January 1, 2016 P281.22 Sec. 2. Effective January 1, 2017 P292.47 Sec. 2. * Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter XA062 (2) More than Five P436.80 Sec. XA062 (2) More than Five Hundred R.A. 10351 as 2200-A/ Hundred Pesos 142 (a) (2) Pesos (>P500.00) implemented by 0605 (>P500.00) of RA No. RR No. 17-2012 Effective January 1, 2013 P700.00 Sec. 2.a.2. Effective January 1, 2014 * P728.00 Sec. 2. Effective January 1, 2015 P757.12 Sec. 2. Effective January 1, 2016 P787.40 Sec. 2. Effective January 1, 2017 P818.90 Sec. 2. * Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter XA070 B. Still wines containing P17.47 Sec. XA070 B. Still wines and carbonated R.A. 10351 as 2200-A/ fourteen percent (14%) 141 (a) of wines containing fourteen implemented by 0605 of alcohol by volume or RA No. percent (14%) of alcohol RR No. 17-2012 less 9334 by volume or less Effective January 1, 2013 P30.00 Sec. 2.b. Effective January 1, 2014 * P31.20 Sec. 2. Effective January 1, 2015 P32.45 Sec. 2. Effective January 1, 2016 P33.75 Sec. 2. Effective January 1, 2017 P35.10 Sec. 2. * Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter XA080 C. Still wines containing P34.94 Sec. XA080 C. Still wines and carbonated R.A. 10351 as 2200-A/ more than fourteen 142 (c) of wines containing more than implemented by 0605 percent (14%) of RA No. fourteen percent (14%) of RR No. 17-2012 alcohol by volume but 9334 alcohol by volume but not not more than twenty- more than twenty-five five percent (25%) of percent (25%) of alcohol by alcohol by volume volume Effective January 1, 2013 P60.00 Sec. 2.c. Effective January 1, 2014 * P62.40 Sec. 2. Effective January 1, 2015 P64.90 Sec. 2. Effective January 1, 2016 P67.50 Sec. 2. Effective January 1, 2017 P70.20 Sec. 2. * Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter XA090 D. Fortified wines Taxed as Sec. XA090 D. Fortified wines containing Taxed as R.A. 10351 as 2200-A/ containing more than Distilled 142 of more than twenty-five Distilled implemented by 0605 twenty-five percent Spirits RA No. percent (25%) of alcohol Spirits RR No. 17-2012 (25%) of alcohol by 9334 by volume shall be taxed volume shall be taxed as distilled spirits (Per as distilled spirits (Per Proof liter/NRP) Proof liter) Note: The rates of tax imposed under Alcohol Products namely: (1) Distilled Spirits, (2) Wines and (3) Fermented Liquors shall be increased by eight percent (8%) every two years starting on January 1, 2007 until January 1, 2011. B. Tobacco Products B. Tobacco Products (1) Tobacco Products Per (1) Tobacco Products Per R.A. 10351 as 2200-T/ kilogram kilogram implemented by 0605 RR No. 17-2012 XT010 (a) Tobacco twisted P1.00 Sec. XT010 (a) Tobacco twisted by by hand or reduced 144 (a) of hand or reduced into into a condition RA No. a condition to be to be consumed 9334 consumed in any in any manner manner other than other than the the ordinary mode ordinary mode of of drying and curing drying and curing Effective January 1, 2013 P1.75 Sec. 4.a. Effective January 1, 2014 * P1.82 Sec. 4. Effective January 1, 2015 P1.89 Sec. 4. Effective January 1, 2016 P1.97 Sec. 4. Effective January 1, 2017 P2.05 Sec. 4. * Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter XT010 (b) Tobacco prepared P1.00 Sec. XT010 (b) Tobacco prepared or R.A. 10351 as 2200-T/ or partially 144 (b) of partially prepared with or implemented by 0605 prepared with or RA No. without the use of any RR No. 17-2012 without the use of 9334 machine or instrument or any machine or without being pressed or instrument or sweetened; and without being pressed or sweetened; and Effective January 1, 2013 P1.75 Sec. 4.b. Effective January 1, 2014 * P1.82 Sec. 4. Effective January 1, 2015 P1.89 Sec. 4. Effective January 1, 2016 P1.97 Sec. 4. Effective January 1, 2017 P2.05 Sec. 4. * Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter XT010 (c) Fine-cut shorts and P0.79 Sec. XT010 (c) Fine-cut shorts and R.A. 10351 as 2200-T/ refuse, scraps, 144 of refuse, scraps, clippings, implemented by 0605 clippings, cuttings, RA No. cuttings, stems, midribs RR No. 17-2012 stems, midribs and 9334 and sweepings of sweepings of tobacco tobacco Effective January 1, 2013 P1.75 Sec. 4.c. Effective January 1, 2014 * P1.82 Sec. 4. Effective January 1, 2015 P1.89 Sec. 4. Effective January 1, 2016 P1.97 Sec. 4. Effective January 1, 2017 P2.05 Sec. 4. * Effective 1/1/2014, the specific tax rate shall be increased by 4% every year thereafter XT020 (2) Tobacco specially P0.79 Sec. XT020 (2) Chewing tobacco, unsuitable R.A. 10351 as 2200-T/ prepared for chewing 144 of in any other manner implemented by 0605 so as to be unsuitable RA No. RR No. 17-2012 for use in any other 9334 manner Note: Effective January 1, 2013 P1.50 Sec. 4 The rates of tax Effective January 1, 2014 * P1.56 Sec. 4 imposed under Effective January 1, 2015 P1.62 Sec. 4 Tobacco Products Effective January 1, 2016 P1.68 Sec. 4 namely: (1) Tobacco Effective January 1, 2017 P1.75 Sec. 4 Products and (2) Tobacco prepared * Effective 1/1/2014, the for chewing shall specific tax rate shall be be increased by six increased by 4% every percent (6%) every year thereafter two years starting on January 1, 2007 until January 1, 2011. XT040 (3) Cigarettes Packed by Per pack Sec. XT040 (3) Cigarettes Packed by Hand Per pack R.A. 10351 as 2200-T/ Hand 145 (B) of implemented by 0605 RA No. RR No. 17-2012 9334 Effective January 1, 2005 P2.00 Effective January 1, 2013 P12.00 Sec. B. Effective January 1, 2007 P2.23 Effective January 1, 2014 P15.00 Sec. B. Effective January 1, 2009 P2.47 Effective January 1, 2015 P18.00 Sec. B. Effective January 1, 2011 P2.72 Effective January 1, 2016 P21.00 Sec. B. Effective January 1, 2017 P30.00 Sec. B. 2018 Onwards Effective 1/1/2018, the specific tax rate shall be increased by 4% every year thereafter IV. The following ATCs are hereby dropped: ATC Description Legal Basis Tax Rate BIR Form No. A. Alcohol Products (1) Distilled Spirits Per proof liter XA010 (a) If produced from the sap of nipa, Sec. 141 (a) of RA No. 9334 P11.65 2200-A/0605 coconut, cassava, camote, or buri palm or from the juice, syrup or sugar of the cane; XA010 If produced in a pot still by small Sec. 141 (a) of RA No. 9334 P11.65 2200-A/0605 distillers (up to 100 liters/day and 50% alcohol by volume) (b) If produced from raw materials other than those enumerated in the preceding paragraph, the tax shall be in accordance with the net retail price (excluding the excise and value-added taxes) per bottle of seven hundred fifty milliliter (750 ml.) volume capacity, as follows: XA031 (1) Less than Two Hundred Sec. 141 (b) (1) of RA No. 9334 P126.00 2200-A/0605 and Fifty Pesos (<P250.00) XA032 (2) Two Hundred and Fifty Pesos Sec. 141 (b) (2) of RA No. 9334 P252.00 2200-A/0605 (P250.00) up to Six Hundred and Seventy Five Pesos (P675.00) XA033 (3) More than Six Hundred and Sec. 141 (b) (3) of RA No. 9334 P504.00 2200-A/0605 Seventy Five Pesos (>P675.00) (2) Fermented Liquors The tax shall be in accordance Per liter with the net retail price (excluding excise and value- added taxes) per liter of volume capacity, as follows: XA051 (1) Less than Fourteen Pesos Sec. 143 (a) of RA No. 9334 P8.27 2200-A/0605 and Fifty Centavos (<P14.50) XA052 (2) Fourteen Pesos and Fifty Sec. 143 (b) of RA No. 9334 P12.30 2200-A/0605 Centavos (P14.50) up to Twenty-two Pesos (P22.00) XA053 (3) More than Twenty-two Pesos Sec. 143 (c) of RA No. 9334 P16.33 2200-A/0605 (>P22.00) Regardless of the net retail price, Sec. 143 of RA No. 9334 fermented liquors brewed and sold at micro-breweries or small establishments such as pubs and restaurants shall be taxed at P16.33 per liter. Note: The rates of tax imposed under Alcohol Products namely: (1) Distilled Spirits, (2) Wines and (3) Fermented Liquors shall be increased by eight percent (8%) every two years starting on January 1, 2007 until January 1, 2011. B. Tobacco Products (1) Cigars The tax shall be in accordance with the net retail price (excluding excise and value- added taxes) per cigar, as follows: XT031 (a) Five Hundred Pesos Sec. 145 (A) (1) of RA No. 9334 Ten Percent (10%) of 2200-T/0605 (P500.00) or less the net retail price * XT032 (b) More than Five Hundred Sec. 145 (A) (2) of RA No. 9334 Fifty Pesos (P50.00) 2200-T/0605 Pesos (>P500.00) plus Fifteen Percent (15%) of the net retail price in excess of Five Hundred Pesos (P500.00) * The tax rate/base shad in no case be lower than P1.12/cigar as provided in the Tax Code of 1997. (2) Cigarettes packed by Machine Per pack The tax shall be in accordance with the net retail price (excluding excise and value- added taxes) per pack, as follows: XT130 (a) Below Five Pesos (P5.00) Sec. 145 (C) (1) of RA No. 9334 2200-T/0605 Effective January 1, 2005 P2.00 Effective January 1, 2007 P2.23 Effective January 1, 2009 P2.47 Effective January 1, 2011 P2.72 XT070 (b) Five Pesos (P5.00) but Sec. 145 (C) (2) of RA No. 9334 2200-T/0605 does not exceed Six Pesos and Fifty Centavos (P6.50) Effective January 1, 2005 P6.35 Effective January 1, 2007 P6.74 Effective January 1, 2009 P7.14 Effective January 1, 2011 P7.56 XT060 (c) More than Six Pesos and Sec. 145 (C) (3) of RA No. 9334 2200-T/0605 Fifty Centavos (>P6.50) but does not exceed Ten Pesos (P10.00) Effective January 1, 2005 P10.35 Effective January 1, 2007 P10.88 Effective January 1, 2009 P11.43 Effective January 1, 2011 P12.00 XT050 (d) More than Ten Pesos Sec. 145 (C) (4) of RA No. 9334 2200-T/0605 (>P10.00) Effective January 1, 2005 P25.00 Effective January 1, 2007 P26.06 Effective January 1, 2009 P27.16 Effective January 1, 2011 P28.30 V. Repealing Clause: This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent herewith. VI. Effectivity : This RMO shall take effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue