TAX ON ALCOHOL PRODUCTS:

Alcohol products- refers to distilled spirits, wines and fermented liquor as

generally classified under and provided for in Sec. 141, 142 and 143, respectively,
of the Tax Code.
Classification:
1. Wines- include all alcoholic beverages produced by fermentation without
distillation, from the juice of any kind of fruit.
* fermentation- process by which enzymatic changes are brought about. It covers a
period of time enough to produce the desired result.
2. Sparkling wine- an effervescent table wine usually white but occasionally red in
color, containing an average of 12% alcohol by volume which is carbonated by
secondary fermentation. E.g. Champagne.
3. Still wine- not effervescent or not carbonated.
4. Fortified wines- natural wines to which distilled spirits are added to increase their
alcoholic strength.
* spirits or distilled spirits- the substance known as ethyl alcohol, ethanol, or spirits
of wine, including all dilutions, purifications and mixtures thereof. Its alcoholic
content is higher than beer or wine. E.g. Whiskey, brandy, rum, gin, and vodka, and
other similar products or mixtures.
PERTINENT PROVISIONS OF THE TAX CODE:
Among others:
1. After the effectivity of R.A. 9334, it shall be taxed under the proper classification
of variant of existing brands and variants of new brands (brand registered after the
effectivity of R.A 8240) based on their suggested net retail price. Such classification
shall not, in any case, be lower than the highest classification of any variant of that
brand.
2. The rates of tax imposed shall be increased by 8% every 2 years starting on Jan.
1, 2007 until Jan. 1, 2011.
3. Tax imposed and payment on registered brands at the effectivity of this Act
cannot be reduced.

4. Manufacturers/brewers and importers of alcohol products shall within 30 days

from the effectivity of this Act and within the first 5 days of every third month
thereafter, submit to the CIR a sworn statement of the volume of the sales of each
particular brand.
5. Knowingly misdeclaration or misrepresentation in the sworn statement shall be
penalized by summary cancellation or withdrawal of permit to engage in business.
6. Any corporation, association, or partnership liable for any acts or omissions in
violation of Sec. 141 (distilled spirits), 142 (wines), and 143 (fermented liquors) shall
be fined treble the amount of deficiency taxes, surcharges and interest which may
be assessed pursuant to the said sections.
7. Any person liable for any acts or omissions under said sections shall be criminally
liable under Sec. 254 of the Tax Code. Persons who willfully aids or abets in its
commission shall be liable in the same manner as the principal. An offender who is
not a citizen of the Philippines, shall be deported immediately after serving
sentence, without further proceedings for its deportation.

RATES AND BASES OF THE EXCISE TAX ON FERMENTED LIQUORS:

On beer, lager beer, ale, porter and other fermented liquors except tuba, basi, tapuy
and similar domestic fermented liquors, there shall be levied, assessed and
collected excise tax, in accordance with the following schedule:

1.) P8. 27 per liter - if the net retail price (excluding the excise tax and the VAT ) per
liter of volume capacity is less than P14.50;
Jan. 1, 2007 - P8. 93
Jan. 1, 2009- P9. 64
Jan. 1, 2011- P10. 41
2.) P12.30 per liter - if the net retail price (excluding the excise tax and the VAT )
per liter of volume capacity is P14.50 up to P22.00;
Jan. 1, 2007 - P13. 28
Jan. 1, 2009- P14. 34
Jan. 1, 2011- P15. 49
3.) P16. 33 per liter - if the net retail price (excluding the excise tax and the VAT )
per liter of volume capacity is more than P22.00.

Jan. 1, 2007 - P17. 64

Jan. 1, 2009- P19. 05
Jan. 1, 2011- P20. 57
Filing of Return:
- file triplicate consolidated return and supporting attachments, setting forth the
registered brand names and brand codes, the total production during the return
period, the quantity to be removed and the excise tax due.

Payment of Excise tax:

1. When to pay?
- before removal from the place of production.
2. Is advance payment or deposit allowed?
- Yes, provided he has sufficient balance of deposit with the BIR to cover full
payment of the excise tax due on said removals.
3. Where to file and pay?
- at the bank duly accredited by the Commissioner located in the Revenue District
where such person is registered or required to register, or
-to the duly authorized Revenue Collection Officer in the Revenue District Office, or
duly authorized treasurer of the city or municipality where such taxpayer has his
place of business or production.
4. For importation:
- it shall be paid by the importer at the Custom Collector prior to the release of such
goods from customs custody.
- it shall not be released without the presentation of the original copy of the
appropriate Permit to Import, duly signed by the Revenue Collection Officer having
jurisdiction over the importer's principal place of business, prior to the importation
and verification by the authorized customs officer of actual affixture of the auxiliary
and regular labels to each and every bottle and/or immediate container.

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