THENATIONAL INTERNAL REVENUE CODEOF THE PHILIPPINES[Tax Reform Act of 1997]Republic Act No. 8424AN ACT
AMENDING
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR
OTHER
PURPOSES
TITLE VIEXCISE
TAXES
ON CERTAIN GOODSCHAPTER IIEXEMPTION
OR CONDITIONAL TAX-FREE REMOVAL OF CERTAIN ARTICLES
SEC.
133. Removal of Wines and Distilled Spirits for Treatment of
Tobacco
Leaf.
- Upon issuance of a permit from the Commissioner and subject to the
rules
and regulations prescribed by the Secretary of Finance, manufacturers
of
cigars and cigarettes may withdraw from bond, free of excise local and
imported wines and distilled spirits in specific quantities and grades
for use in the treatment of tobacco leaf to be used in the manufacture
of cigars and cigarettes; but such wines and distilled spirits must
first
be suitably denatured.
SEC.
134. Domestic Denatured Alcohol.
- Domestic alcohol of not less than one hundred eighty degrees (180O)
proof (ninety percent [90%] absolute alcohol) shall, when suitably
denatured
and rendered unfit for oral intake, be exempt from the excise tax
prescribed
in Section 141: Provided, however, That such denatured alcohol
shall
be subject to tax under Section 106(A) of this Code: Provided,
further,
That if such alcohol is to be used for automotive power, it shall be
taxed
under Section 148(d) of this Code: Provided, finally, That any
alcohol,
previously rendered unfit for oral intake after denaturing but
subsequently
rendered fit for oral intake after undergoing fermentation, dilution,
purification,
mixture or any other similar process shall be taxed under Section 141
of
this Code and such tax shall be paid by the person in possession of
such
reprocessed spirits.
SEC.
135. Petroleum Products Sold to International Carriers and Exempt
Entities
or Agencies. -Petroleum products sold to the following are exempt from excise tax:
(a) International
carriers of Philippine or foreign registry on their use or consumption
outside the Philippines: Provided, That the petroleum products
sold
to these international carriers shall be stored in a bonded storage
tank
and may be disposed of only in accordance with the rules and
regulations
to be prescribed by the Secretary of Finance, upon recommendation of
the
Commissioner;
(b) Exempt
entities
or agencies covered by tax treaties, conventions and other
international
agreements for their use or consumption: Provided, however, That
the country of said foreign international carrier or exempt entities or
agencies exempts from similar taxes petroleum products sold to
Philippine
carriers, entities or agencies; and
(c) Entities which
are by law exempt from direct and indirect taxes.
SEC.
136. Denaturation, Withdrawal and Use of Denatured Alcohol.
- Any person who produces, withdraws, sells, transports or knowingly
uses,
or is in possession of denatured alcohol, or articles containing
denatured
alcohol in violation of laws or regulations now or hereafter in force
pertaining
thereto shall be required to pay the corresponding tax, in addition to
the penalties provided for under Title X of this Code.
SEC.
137. Removal of Spirits Under Bond for Rectification.-
Spirits requiring rectification may be removed from the place of
production
to another establishment for the purpose of rectification without
prepayment
of the excise tax: Provided, That the distiller removing such
spirits
and the rectifier receiving them shall file with the Commissioner their
joint bond conditioned upon the payment by the rectifier of the excise
tax due on the rectified alcohol: Provided, further, That in
cases
where alcohol has already been rectified either by original and
continuous
distillation or by redistillation, no loss for rectification and
handling
shall be allowed and the rectifier thereof shall pay the excise tax due
on such losses: Provided, finally, That where a rectifier makes
use of spirits upon which the excise tax has not been paid, he shall be
liable for the payment of the tax otherwise due thereon.
SEC.
138. Removal of Fermented Liquors to Bonded Warehouse.
- Any brewer may remove or transport from his brewery or other place of
manufacture to a bonded warehouse used by him exclusively for the
storage
or sale in bulk of fermented liquors of his own manufacture, any
quantity
of such fermented liquors, not less than one thousand (1,000) liters at
one removal, without prepayment of the tax thereon under a permit which
shall be granted by the Commissioner. Such permit shall be affixed to
every
package so removed and shall be cancelled or destroyed in such manner
as
the Commissioner may prescribe. Thereafter, the manufacturer of such
fermented
liquors shall pay the tax in the same manner and under the same penalty
and liability as when paid at the brewery.
SEC.
139. Removal of Damaged Liquors Free of Tax.
- When any fermented liquor has become sour or otherwise damaged so as
to be unfit for use as such, brewers may sell and after securing a
special
permit from the Commissioner, under such conditions as may be
prescribed
in the rules and regulations prescribed by the Secretary of Finance,
remove
the same without the payment of tax thereon in cask or other packages,
distinct from those ordinarily used for fermented liquors, each
containing
not less than one hundred seventy-five (175) liters with a note of
their
contents permanently affixed thereon.
SEC.
140. Removal of Tobacco Products Without Prepayment of Tax.
- Products of tobacco entirely unfit for chewing or smoking may be
removed
free of tax for agricultural or industrial use, under such conditions
as
may be prescribed in the rules and regulations prescribed by the
Secretary
of Finance. Stemmed leaf tobacco, fine-cut shorts, the refuse of
fine-cut
chewing tobacco, scraps, cuttings, clippings, stems, or midribs, and
sweepings
of tobacco may be sold in bulk as raw material by one manufacturer
directly
to another without payment of the tax, under such conditions as may be
prescribed in the rules and regulations prescribed by the Secretary of
Finance.
"Stemmed leaf tobacco",
as herein used, means leaf tobacco which has had the stem or midrib
removed.
The term does not include broken leaf tobacco. |
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