TITLE VIEXCISE
TAXES
ON CERTAIN GOODS
CHAPTER IVEXCISE
TAX
ON TOBACCO PRODUCTS
SEC.
144. Tobacco Products. -There
shall be collected a tax of seventy-five centavos (P0.75) on each
kilogram
of the following products of tobacco:
(a) Tobacco twisted
by hand or reduced into a condition to be consumed in any mannerother than the ordinary mode of drying and curing;
(b) Tobacco prepared
or partially prepared with or without the use of any machine orinstruments or without being pressed or sweetened; and
(c) Fine-cut shorts
and refuse, scraps, clippings, cuttings, stems and sweepings of tobacco.
Fine-cut shorts and refuse,
scraps, clippings, cuttings, stems and sweepings of tobacco resulting
from
the handling or stripping of whole leaf tobacco may be transferred,
disposed
of, or otherwise sold, without prepayment of the excise tax herein
provided
for under such conditions as may be prescribed in the rules and
regulations
promulgated by the Secretary of Finance, upon recommendation of the
Commissioner,
if the same are to be exported or to be used in the manufacture of
other
tobacco products on which the excise tax will eventually be paid on the
finished product.
On tobacco specially
prepared for chewing so as to be unsuitable for use in any other
manner,
on each kilogram, Sixty centavos (P0.60).
SEC.
145. Cigars and Cigarettes. -
(A) Cigars.-
There
shall be levied, assessed and collected on cigars a tax of One peso
(P1.00)
per cigar.cralaw:red
(B) Cigarettes
Packed by Hand. -
There shall be levied, assessed and collected on cigarettes packed by
hand
a tax of Forty centavos (P0.40) per pack.cralaw:red
(C) Cigarettes
Packed by Machine.-
There shall be levied, assessed and collected on cigarettes packed by
machine
a tax at the rates prescribed below:
(1) If the net retail
price (excluding the excise tax and the value-added tax) is above Ten
pesos (P10.00) per pack, the tax shall be Twelve pesos (P12.00) per
pack;
(2) If the net
retail
price (excluding the excise tax and the value-added tax) exceeds Six
pesos and fifty centavos (P6.50) but does not exceed Ten pesos (P10.00)
per pack,
the tax shall be Eight pesos (8.00) per pack;
(3) If the net
retail
price (excluding the excise tax and the value-added tax) is Five pesos
(P5.00) but does not exceed Six pesos and fifty centavos (P6.50) per
pack,
the tax
shall be Five pesos (P5.00) per pack;
(4) If the net
retail
price (excluding the excise tax and the value-added tax is below Five
pesos (P5.00) per pack, the tax shall be One peso (P1.00) per pack;
Variants of existing brands
of cigarettes which are introduced in the domestic market after the
effectivity
of R.A. No. 8240 shall be taxed under the highest classification of any
variant of that brand.
The excise tax from
any brand of cigarettes within the next three (3) years from the
effectivity
of R. A. No. 8240 shall not be lower than the tax, which is due from
each
brand on October 1, 1996: Provided, however, That in cases
where
the excise tax rates imposed in paragraphs (1), (2), (3) and (4)
hereinabove
will result in an increase in excise tax of more than seventy percent
(70%);
for a brand of cigarette, the increase shall take effect in two
tranches:
fifty percent (50%) of the increase shall be effective in 1997 and one
hundred percent (100%) of the increase shall be effective in 1998.cralaw:red
Duly registered or existing
brands of cigarettes or new brands thereof packed by machine shall only
be packed in twenties.cralaw:red
The rates of excise
tax on cigars and cigarettes under paragraphs (1), (2), (3) and (4)
hereof,
shall be increased by twelve percent (12%) on January 1, 2000.cralaw:red
New brands shall be
classified according to their current net retail price.cralaw:red
For the above purpose,
"net retail price" shall mean the price at which the cigarette is
sold
on retail in twenty (20) major supermarkets in Metro Manila (for brands
of cigarettes marketed nationally), excluding the amount intended to
cover
the applicable excise tax and the value-added tax. For brands which are
marketed only outside Metro Manila, the "net retail price" shall
mean the price at which the cigarette is sold in five (5) major
supermarkets
in the region excluding the amount intended to cover the applicable
excise
tax and the value-added tax.cralaw:red
The classification of
each brand of cigarettes based on its average net retail price as of
October
1, 1996, as set forth in Annex "D", shall remain in force until
revised by Congress.cralaw:red
"Variant of a brand"
shall refer to a brand on which a modifier is prefixed and/or
suffixed
to the root name of the brand and/or a different brand which carries
the
same logo or design of the existing brand.cralaw:red
Manufactures and importers
of cigars and cigarettes shall, within thirty (30) days from the
effectivity
of R. A. No. 8240 and within the first five (5) days of every month
thereafter
submit to the Commissioner a sworn statement of the volume of sales for
each particular brand of cigars and/or cigarettes sold at his
establishment
for the three-month period immediately preceding.cralaw:red
Any manufacturer or
importer who, in violation of this Section, knowingly misdeclares or
misrepresents
in his or its sworn statement herein required any pertinent data or
information
shall, upon discovery, be penalized by a summary cancellation or
withdrawal
of his or its permit to engage in business as manufacturer or importer
of cigars or cigarettes.cralaw:red
Any corporation, association
or partnership liable for any of the acts or omissions in violation of
this Section shall be fined treble the amount of deficiency taxes,
surcharges
and interest which may be assessed pursuant to this Section.cralaw:red
Any person liable for
any of the acts or omissions prohibited under this Section shall be
criminally
liable and penalized under Section 254 of this Code. Any person who
willfully
aids or abets in the commission of any such act or omission shall be
criminally
liable in the same manner as the principal.cralaw:red
If the offender is not
a citizen of the Philippines, he shall be deported immediately after
serving
the sentence without further proceedings for deportation.
SEC.
146. Inspection Fee. -For
inspection madein accordance with this Chapter, there shall be
collected a fee of Fifty centavos (P0.50) for each thousand cigars or
fraction
thereof; Ten centavos (P0.10) for each thousand cigarettes of fraction
thereof; Two centavos (P0.02) for each kilogram of leaf tobacco or
fraction
thereof; and Three centavos (P0.03) for each kilogram or fraction
thereof,
of scrap and other manufactured tobacco.cralaw:red
The inspection fee on
leaf tobacco, scrap, cigars, cigarettes and other tobacco products as
defined
in Section 147 of this Code shall be paid by the wholesaler,
manufacturer,
producer, owner or operator of redrying plant, as the case may be,
immediately
before removal there of from the establishment of the wholesaler,
manufacturer,
owner or operator of the redrying plant. In case of imported leaf
tobacco
and products thereof, the inspection fee shall be paid by the importer
before removal from customs' custody.cralaw:red
Fifty percent (50%)
of the tobacco inspection fee shall accrue to the Tobacco Inspection
Fund
created by Section 12 of Act No. 2613, as amended by Act No. 3179, and
fifty percent (50%) shall accrue to the Cultural Center of the
Philippines.
SEC.
147. Definition of Terms. -When
used herein and in statements or official forms prescribed hereunder,
the
following terms shall have the meaning indicated:
(a) "Cigars"
mean all rolls of tobacco or any substitute thereof, wrapped in leaf
tobacco.
(b) "Cigarettes"
mean all rolls of finely-cut leaf tobacco, or any substitute therefor,
wrappedin paper or in any other material.
(c) "Wholesale
price"
shall mean the amount of money or price paid for cigars or cigarettespurchased for the purpose of resale, regardless of quantity.
(d) "Retail price"
shall mean the amount of money or price which an ultimate consumer orend-user pays for cigars or cigarettes purchased.