Renaming of Alphanumeric Tax Codes (ATCs) and Revised Rates and Bases of Excise Tax on Tobacco and Alcohol Products

March 22, 2005 REVENUE MEMORANDUM ORDER NO. 07-05 SUBJECT : Renaming of Alphanumeric Tax Codes (ATCs) and Revised Rates and Bases of Excise Tax on Tobacco and Alcohol Products TO : All Internal Revenue Officers and Others Concerned I. Objective : To facilitate proper identification and monitoring of volume of removals and excise tax payments declared per BIR Forms 2200A (Excise Tax Return for Alcohol Products) and 2200T (Excise Tax Return for Tobacco Products) for Integrated Tax System (ITS) and e-Filing Payment System (eFPS) purposes, the Alphanumeric Tax Codes (ATCs) on Alcohol and Tobacco Products are hereby renamed/created together with their corresponding revised excise tax rates in view of the enactment of Republic Act No. 9334 effective January 1, 2005. II. List of renamed/created ATCs together with the corresponding revised excise tax rates under the new Republic Act No. 9334 effective January 1, 2005 : Alpha Numeric Tax Rates Tax Code (ATC) PRODUCTS Old New From To (1) Distilled Spirits Per proof liter Per proof liter XA010 XA010 (a) If produced from the sap of nipa, coconut P8.96 P11.65 cassava, camote, or buri palm or from the juice, syrup or sugar of the cane; XA020 XA010 If produced in a pot still by small distillers P4.48 P11.65 (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 XA031 (1) Less than Two Hundred and Fifty Pesos P84.00 P126.00 (< P250.00) XA032 XA032 (2) Two Hundred and Fifty Pesos (P250.00) P168.00 P252.00 up to Six Hundred and Seventy Five Pesos (P675.00) XA033 XA033 (3) More than Six Hundred and Seventy Five P336.00 P504.00 pesos (> P675.00) XA040 XA040 (c) Medicinal preparations, flavoring extracts, and all other preparations, except toilet preparations, of which, excluding water, distilled spirits form the chief ingredient, shall be subject to the same tax as such chief ingredient (2) Wines Per liter Per liter (a) Sparkling wines/champagnes The tax shall be in accordance with the net retail price (excluding the excise and value-added taxes) per bottle, regardless of proof, as follows: XA061 XA061 (1) Five Hundred Pesos (<P500.00) or less P112.00 P145.60 XA062 XA062 (2) More than Five Hundred Pesos (P<500.00) P336.00 P436.60 XA070 XA070 (b) Still wines containing fourteen percent (14%) P13.44 P17.47 of alcohol by volume or less XA080 XA080 (c) Still wines containing more than fourteen percent P26.88 P34.94 (14%) of alcohol by volume but not more than twenty-five percent (25%) of alcohol by volume XA090 XA090 Fortified wines containing more than twenty-five percent (25%) of alcohol by volume shall be taxed as distilled spirits (3) Fermented Liquors Per liter Per liter The tax shall be in accordance with the net retail price (excluding excise and value-added taxes) per liter of volume capacity, as follows: XA051 XA051 (1) Less than Fourteen Pesos and Fifty Centavos (<P14.50) P6.89 P8.27 P6.99 P8.27 P7.07 P8.27 P7.61 P8.27 P7.62 P8.27 P7.92 P8.27 XA052 XA052 (2) Fourteen Pesos and Fifty Centavos (P14.50) P10.25 P12.30 up to Twenty-two Pesos (P22.00) P10.48 P12.30 XA053 XA053 (3) More than Twenty-two Pesos (>P22.00) P13.61 P16.33 P14.02 P16.33 P20.72 P20.72 P22.30 P22.30 P27.28 P27.28 Regardless of the net retail price, fermented liquors brewed and sold at micro-breweries or small establishments such as pubs and restaurants shall be taxed at P16.33 per liter. XT010 XT010 (1) Tobacco Products P0.75 P1.00 per k.g. per k.g. (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 (b) Tobacco prepared or partially prepared with or without the use of any machine and instrument or without being pressed or sweetened; and (c) Fine-cut shorts and refuse, scraps, clippings cuttings, stems, midribs and sweepings of tobacco; XT020 XT020 (2) Chewing tobacco P0.60 P0.79 per k.g. per k.g. XT030 (3) Cigars P1.12 per cigar (NEW The tax shall be in accordance with the net retail ATCs) price (excluding excise and value-added taxes) per cigar, as follows: XT031 (1) Five Hundred Pesos (=<P500.00) or less Ten percent (10%) of the net retail price * XT032 (2) More than Five Hundred Pesos (>P500.00) Fifty Pesos (P50.00) plus Fifteen Percent (15%) of the net retail *The tax rate shall in no case be lower than P1.12 price in excess of as provided in the Tax Code of 1997. Five Hundred Pesos (P500.00) Per pack Per pack XT040 XT040 (4) Cigarettes Packed by Hand P0.40 P2.00 P0.40284 P2.00 P0.48 P2.00 P0.48204 P2.00 P0.49 P2.00 (5) Cigarettes Packed by Machine Per pack Per pack The tax shall be in accordance with the net retail price (excluding excise and value-added taxes) per pack, as follows: XT130 XT130 (a) Below Five Pesos (<P5.00) P1.12 P2.00 P3.30 P3.30 XT070 XT070 (b) Five pesos (P5.00) but does not exceed Six P5.50 P5.50 (should be Pesos and Fifty Centavos (P6.50) transferred under the P2.00 bracket) P5.60 P6.35 P5.85 P6.35 P6.96 P6.96 XT060 XT060 (c) More than Six Pesos and Fifty Centavos (P>6.50) P8.96 P10.35 but does not exceed Ten Pesos (P10.00) XT050 XT050 (d) More than Ten Pesos (>P10.00) P13.44 P25.00 (6) Tobacco Inspection Fees XT080 XT080 (a) For each thousand cigars or fraction thereof P0.50 P0.50 XT090 XT090 (b) For each thousand cigarettes or fraction thereof P0.10 P0.10 XT100 XT100 (c) For each kilogram of leaf tobacco or fraction P0.02 P0.02 thereof XT110 XT110 (d) For each kilogram or fraction thereof of scrap and P0.03 P0.03 III. Repealing Clause : This Order supersedes all revenue issuances or portions thereof consistent herewith. SAHIaD IV. Effectivity : This Order takes effect immediately. (SGD.) GUILLERMO L. PARAYNO, JR. Commissioner of Internal Revenue