Providing for the Revised Tax Rates on Tobacco Products Pursuant to the Provisions of RA No. 10963, Amending for the Purpose RR No. 17-2012

January 5, 2018 REVENUE REGULATIONS NO. 03-18 SUBJECT : Providing for the Revised Tax Rates on Tobacco Products Pursuant to the Provisions of Republic Act No. 10963, Otherwise Known as "Tax Reform for Acceleration and Inclusion (TRAIN) Law," Amending for the Purpose Revenue Regulations No. 17-2012 TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope . Pursuant to the provisions of Section 244 in relation to Section 245 of the National Internal Revenue Code of 1997 (NIRC), as amended and Section 84 of Republic Act No. 10963, otherwise known as "Tax Reform for Acceleration and Inclusion (TRAIN) Law," these Regulations are hereby promulgated to provide for the revised tax rates on cigarettes, amending certain provisions of Revenue Regulations (RR) No. 17-2012. SECTION 2. Amendatory Provisions . The provisions of Section 3 Items B (4) and B (5) of RR No. 17-2012 is hereby amended as follows: " SEC. 3. REVISED RATES AND BASES OF THE SPECIFIC TAX. There shall be levied, assessed and collected an excise tax on tobacco products, in accordance with the following schedule : PRODUCT DATE OF EFFECTIVITY OF TAX RATES January 1, 2018 until June 30, 2018 July 1, 2018 until December 31, 2019 January 1, 2020 until December 31, 2021 January 1, 2022 until December 31, 2023 January 1, 2024 onwards x x x B. TOBACCO PRODUCTS x x x Per Pack Per Pack Per Pack Per Pack Effective 1/1/2024, the specific tax rate shall be increased by 4% every year thereafter (4) Cigarettes packed by hand Php32.50 Php35.00 Php37.50 Php40.00 (5) Cigarettes packed by machine Php32.50 Php35.00 Php37.50 Php40.00 x x x SECTION 4. Repealing Clause . All regulations, rulings or orders or portions thereof not consistent with the provisions of these Regulations are hereby revoked, repealed or amended accordingly. SECTION 5. Effectivity Clause . These Regulations shall take effect immediately following its publication in a newspaper of general circulation. (SGD.) CARLOS G. DOMINGUEZ Secretary of Finance Recommending Approval: (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue Published in the Manila Bulletin on January 18, 2018.