Creation and Modification of ATC for Excise Tax on Tobacco Products, Heated Tobacco Products and Vapor Products Pursuant to the Implementation of RA Nos. 11346, 11467 and 10351

March 6, 2020 REVENUE MEMORANDUM ORDER NO. 020-20 SUBJECT : Creation and Modification of Alphanumeric Tax Code (ATC) for Excise Tax on Tobacco Products, Heated Tobacco Products and Vapor Products Pursuant to the Implementation of Republic Act (RA) No. 11346 (An Act Increasing the Excise Tax on Tobacco Products, Imposing Excise Tax on Heated Tobacco Products and Vapor Products, Increasing the Penalties for Violations of Provisions on Articles Subject to Excise Tax, and Earmarking a Portion of the Total Excise Tax Collection from Sugar-Sweetened Beverages, Alcohol, Tobacco, Heated Tobacco and Vapor Products for Universal Health Care Amending for this Purpose Sections 144, 145, 146, 147, 152, 164, 260, 262, 263, 265, 288 and 289, Repealing Section 288 (B) and 288 (C), and Creating New Sections 263-A, 265-B and 288-A of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 10963, and for Other Purposes); RA No. 11467 (An Act Amending Sections 109, 141, 142, 143, 144, 147, 152, 263, 263-A, 265, and 288-A, and Adding a New Section 290-A to Republic Act No. 8424, as Amended, Otherwise Known as the National Internal Revenue Code of 1997, and for Other Purposes); and RA No. 10351 (An Act Restructuring the Excise Tax on Alcohol and Tobacco Products by Amending Sections 141, 142, 143, 144, 145, 8, 131 and 288 of Republic Act No. 8424, Otherwise Known as the National Internal Revenue Code of 1997, as Amended by Republic Act No. 9334, and for Other Purposes) TO : All Collection Agents, Revenue District Officers and Other Internal Revenue Officers Concerned I. OBJECTIVE: To facilitate the proper identification and monitoring of tax collection from Excise Tax on Tobacco Products, Heated Tobacco Products and Vapor Products, in connection with the implementation of RA Nos. 11346, 11467 and 10351, and for inclusion in BIR Form No. 2200-T (Excise Tax Return for Tobacco Products). cSaATC II. THE FOLLOWING ATCs ARE HEREBY CREATED: ATC Description Tax Rate Legal Basis BIR Form No. XT155 Cigarettes Packed by Machine RA No. 11346 2200-T Effective January 1, 2020 P45.00 per pack Effective January 1, 2021 P50.00 per pack Effective January 1, 2022 P55.00 per pack Effective January 1, 2023 P60.00 per pack XT160 On Heated Tobacco Products RA Nos. 11346 and 11467 Effective January 1, 2020 P10.00 per pack Effective January 27, 2020 P25.00 per pack Effective January 1, 2021 P27.50 per pack Effective January 1, 2022 P30.00 per pack Effective January 1, 2023 P32.50 per pack XT165 Vapor Products RA No. 11346 Effective January 1, 2020 to January 26, 2020 00.00 ml to 10.00 ml P10.00 10.01 ml to 20.00 ml P20.00 20.01 ml to 30.00 ml P30.00 30.01 ml to 40.00 ml P40.00 40.01 ml to 50.00 ml P50.00 More than 50.00 ml P50.00 plus P10.00 for every additional 10.00 ml XT170 On Vapor Products RA No. 11467 a. Nicotine Salt or Salt Nicotine Effective January 27, 2020 P37.00 per milliliter Effective January 1, 2021 P42.00 per milliliter Effective January 1, 2022 P47.00 per milliliter Effective January 1, 2023 P52.00 per milliliter XT180 b. Conventional 'Freebase' or 'Classic' Nicotine Effective January 27, 2020 P45.00 per Ten (10) milliliters Effective January 1, 2021 P50.00 per Ten (10) milliliters Effective January 1, 2022 P55.00 per Ten (10) milliliters Effective January 1, 2023 P60.00 per Ten (10) milliliters XT190 Inspection Fee Heated Tobacco Products P0.10 per 1000 unit of heated tobacco products RA No. 11346 XT200 Vapor Products P0.01 per milliliter III. THE FOLLOWING ATCs ARE HEREBY MODIFIED: EXISTING (per ATC Handbook) MODIFIED/NEW BIR FORM NO. ATC Description Tax Rate Description Tax Rate Legal Basis XT010 Tobacco Products Tobacco Products RA No. 10351 RR No. 17-2012 2200-T a. Tobacco twisted by hand or reduced into a condition to be consumed in any manner other than the ordinary mode of drying and curing a. Tobacco twisted by hand or reduced into a condition to be consumed in any manner other than the ordinary mode of drying and curing Effective January 1, 2013 P1.75/kg Effective January 1, 2020 P2.31/kg Effective January 1, 2014 P1.82/kg Effective January 1, 2021 P2.40/kg Effective January 1, 2015 P1.89/kg Effective January 1, 2022 P2.50/kg Effective January 1, 2016 P1.97/kg Effective January 1, 2023 P2.60/kg Effective January 1, 2017 P2.05/kg b. Tobacco prepared or partially prepared with or without the use of any machine or instrument or without being pressed or sweetened b. Tobacco prepared or partially prepared with or without the use of any machine or instrument or without being pressed or sweetened Effective January 1, 2013 P1.75/kg Effective January 1, 2020 P2.31/kg Effective January 1, 2014 P1.82/kg Effective January 1, 2021 P2.40/kg Effective January 1, 2015 P1.89/kg Effective January 1, 2022 P2.50/kg Effective January 1, 2016 P1.97/kg Effective January 1, 2023 P2.60/kg Effective January 1, 2017 P2.05/kg c. Fine-cut shorts and refuse, scraps, clippings, cuttings, stems, midribs and sweepings of tobacco c. Fine-cut shorts and refuse, scraps, clippings, cuttings, stems, midribs and sweepings of tobacco Effective January 1, 2013 P1.75/kg Effective January 1, 2020 P2.31/kg Effective January 1, 2014 P1.82/kg Effective January 1, 2021 P2.40/kg Effective January 1, 2015 P1.89/kg Effective January 1, 2022 P2.50/kg Effective January 1, 2016 P1.97/kg Effective January 1, 2023 P2.60/kg Effective January 1, 2017 P2.05/kg XT020 Chewing Tobacco Unsuitable for Use in Any Other Manner Chewing Tobacco Unsuitable for Use in Any Other Manner Effective January 1, 2013 P1.50/kg Effective January 1, 2020 P1.97/kg Effective January 1, 2014 P1.56/kg Effective January 1, 2021 P2.05/kg Effective January 1, 2015 P1.62/kg Effective January 1, 2022 P2.13/kg Effective January 1, 2016 P1.68/kg Effective January 1, 2023 P2.22/kg Effective January 1, 2017 P1.75/kg X7T035 Cigars Cigars RA No. 11346 a. Ad Valorem Tax Based on the Net Retail Price (NRP) per Cigar [excluding the excise and value-added tax (VAT)] a. Ad Valorem Tax Based on the Net Retail Price (NRP) per Cigar [excluding the excise and value-added tax (VAT)] Effective January 1, 2013 20% NRP/cigar Effective January 1, 2020 20% NRP/cigar Effective January 1, 2014 20% NRP/cigar Effective January 1, 2021 20% NRP/cigar Effective January 1, 2015 20% NRP/cigar Effective January 1, 2022 20% NRP/cigar Effective January 1, 2016 20% NRP/cigar Effective January 1, 2023 20% NRP/cigar Effective January 1, 2017 20% NRP/cigar XT036 b. Specific Tax b. Specific Tax Effective January 1, 2013 P5.00/cigar Effective January 1, 2020 P6.57/cigar Effective January 1, 2014 P5.20/cigar Effective January 1, 2021 P6.83/cigar Effective January 1, 2015 P5.41/cigar Effective January 1, 2022 P7.10/cigar Effective January 1, 2016 P5.62/cigar Effective January 1, 2023 P7.38/cigar Effective January 1, 2017 P5.85/cigar XT040 Cigarettes Cigarettes Cigarettes Packed by Hand Cigarettes Packed by Hand Effective January 1, 2013 P12.00/pack Effective January 1, 2020 P45.00/pack Effective January 1, 2014 P15.00/pack Effective January 1, 2021 P50.00/pack Effective January 1, 2015 P18.00/pack Effective January 1, 2022 P55.00/pack Effective January 1, 2016 P21.00/pack Effective January 1, 2023 P60.00/pack Effective January 1, 2017 P30.00/pack IV. REPEALING CLAUSE: This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent herewith. V. EFFECTIVITY: This RMO shall take effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue