REPUBLIC ACT NO. 6633 - AN
ACT AMENDING SUBPARAGRAPHS (3) AND (4), PARAGRAPH B OF SECTION ONE
HUNDRED AND THIRTY-SEVEN OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND
SIXTY-SIX, AS AMENDED
Section 1.
Subparagraphs (3) and (4), paragraph B, Section one hundred and
thirty-seven of Commonwealth Act Numbered Four hundred and sixty-six,
as amended, is hereby further amended to read as follows:
"Sec. 137
"(b) . . .
"(3) On cigarettes made of leaf tobacco other than
Philippine grown flue-cured and/or re-dried Virginia type tobacco and
imported Virginia type tobacco, without the use of added liners and/or
protective films such as aluminum foils, cellophane, polypropylene
and/or other materials of similar nature, of eighty-one millimeters or
less in length, packed in thirty cigarettes or more per pack, on each
thousand, three pesos: provided, that if the length exceeds eighty-one
millimeters, the tax shall be increased by fifty per centum: provided,
further, that if the length exceeds one hundred twenty-one millimeters,
the tax shall be increased by one hundred per centum, but if added
liners and/or protective films such as aluminum foils, cellophane,
polypropylene and/or materials of similar nature are used, on each
thousand, the tax shall be four pesos if the length does not exceed
eighty-one millimeters which shall be increased by fifty per centum if
the length exceeds eighty-one millimeters and by one hundred per centum
if the length exceeds one hundred twenty-one millimeters.f the
cigarettes under this subparagraph are packed in twenty cigarettes or
less per pack and the length does not exceed eighty-one millimeters, on
each thousand the tax shall be four pesos: provided, that if the length
exceed eighty-one millimeters, the tax shall be increased by fifty per
centum: provided, further, that if the length exceeds one hundred
twenty-one millimeters, the tax shall be increased by one hundred per
centum.
"Leaf tobacco out of which cigarettes under subparagraph (1), (2) and
(3) of this paragraph are manufactured or made are hereby classified as
Class A, B, and C, respectively. Cigarettes so made or manufactured
must indicate on their packs or packages, in print and in a distinctive
manner as be provided by the Commissioner of Internal Revenue, the
class of their leaf tobacco contents.
"Failure to comply with this requirements, or any false designation or
false advertisement of the class of tobacco contents, shall constitute
an offense punishable with the same penalties prescribed in Section One
Hundred Seventy-four of this Act."
"(4) If the cigarettes are mechanically wrapped or
packed, the tax provided for in subparagraphs (1), (2) and (3), as the
case may be, paragraph B, of this section, shall be increased by one
hundred and twenty per centum per thousand cigarettes.
"Cigarettes shall be considered as mechanically wrapped or packed when
at any stage of the wrapping or packing, a machine or any mechanical
contrivance shall have been used.
"(5) If the cigarettes are manufactured purely out of
imported leaf tobacco, the tax provided for in subparagraph (2),
paragraph (b) of this section shall apply and shall be increased by one
hundred and twenty per centum per thousand cigarettes.
"Any provisions of Republic Act Numbered Twelve hundred eighty-seven to
the contrary notwithstanding, any process of chemical treatment of
tobacco leaves shall not be allowed.
“The maximum price at which the various classes of cigars are sold at
wholesale in the factory or in the establishment of the importer to the
public shall determine the rate of the tax applicable to such cigars;
and if the manufacturer or importer, also sells, or allows to be sold,
his cigars at wholesale in another establishment of which he is the
owner or in the profits of which he has an interest, the maximum sale
price in such establishment shall determine the rate of the tax
applicable to the cigars therein sold: provided, however, that when
such maximum wholesale price is less than the cost of manufacture or
importations plus all expenses incurred until the cigars are finally
sold by the manufacturer or importer, such cost plus expenses shall
determine the amount of tax to be applied.
"Every manufacturer or importer of cigars shall file with the
Commissioner of Internal Revenue on the date or dates designated by the
latter, a sworn statement showing the maximum wholesale price of
cigars, together with the cost of manufacture or importation plus
expenses incurred or to be incurred until the cigars are finally sold
and it shall be unlawful to sell said cigars at wholesale at a price in
excess of the one specified in the statement required by this Title
without previous written notice to said Commissioner of Internal
Revenue.n the case of imported cigars, the sworn statement required
herein shall be accompanied by verified sales invoice of the
manufacturers of the cigars as well as the consular invoice issued by a
Philippine Consul, should one be available at the place of origin or
shipment.
"Every manufacturer or importer of cigarettes shall file with the
Commissioner of Internal Revenue, on the date or dates designated by
the latter, a sworn statement showing the quantity and value of
sun-dried, flue-cured and/or re-dried or imported Virginia-type tobacco
or other types of tobacco purchased, imported or manufactured; the
brand or brands of cigarettes manufactured or imported; their
corresponding length in millimeters; whether containing flue-cured
tobacco; whether the cigarettes are mechanically wrapped or packed; and
indicating the names and addresses of the person or persons from which
purchased. Every dealer of Philippine-grown sun-dried Virginia tobacco
or Philippine-grown flue-cured and/or re-dried tobacco shall, likewise
file the Commissioner of Internal Revenue a statement of the quantity
and value of sun-dried or flue-cured and/or re-dried Philippine grown
Virginia-type tobacco produced by him and the names and addresses of
his purchasers of the products.n the case of imported cigarettes, the
sworn statement required herein shall, in addition to the above
information, be accompanied by a verified commercial invoice of the
manufacturer of the cigarettes as well as the consular invoice issued
by a Philippine Consul, if any, containing the information that
Philippine Internal Revenue strip stamps have been affixed to each and
every pack of cigarettes and that such pack bears the inscription "for
export to the Philippines.
"Every cigarette manufacturer must certify to their actual daily
production with an indication of their manufacturing capacity and
audited by reputable independent auditing firm as a basis of total
yearly production for specific tax purposes.
"If the government of a foreign country permits the revenue stamps of
such country to be affixed in the Philippines to tobacco (including
cigars) or snuff manufactured in the Philippines and imported into such
foreign country, internal revenue stamps of the Philippines may be
affixed to tobacco (including cigars) or snuff manufactured in such
foreign country to be imported into the Philippines from such foreign
country, under such rules and regulations as to the Commissioner of
Internal Revenue with the approval of the Secretary of Finance may
prescribe.
"Any dealer, manufacturer or importer who, in violation of this
section, knowingly misdeclares or misrepresents in his report the type
of tobacco sold, purchased or manufactured, and the tobacco contents of
manufactured or imported cigarettes or makes any false statement
thereon or violates any provision of this section shall upon conviction
be required to pay five times the amount of the tax evaded and punished
by a fine of not less than one thousand pesos nor more than ten
thousand pesos and by imprisonment of not less than three years nor
more than six years.
"If the violator is an alien, he shall in addition be automatically
deported after paying the fine and serving imprisonment.
"Any official or employee of the Bureau of Internal Revenue who
knowingly misclassifies the leaf tobacco or connives or countenances or
assists in the violation of any provision of this section shall, in
addition to administrative and criminal penalties, be dismissed from
the service and forfeit all his retirement privileges.
Sec. 2. This Act shall take effect upon its
approval.
Approved: October 23, 1972
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