Republic Act No. 11467 - Duterte signs law imposing higher taxes on Alcohol, Tobacco and E-Cigarettes.

Republic Act No. 11467 - AN ACT AMENDING SECTIONS 109, 141, 142, 143, 144, 147, 152, 263, 263-A, 265, AND 288-A, AND ADDING A NEW SECTION 290-A TO REPUBLIC ACT NO. 8424, AS AMENDED, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AND FOR OTHER PURPOSES

Signed on January 22, 2020

President Rodrigo Duterte has signed into law a measure raising taxes on alcohol beverages and electronic cigarettes, Malacañang announced on Thursday, 23 January 2020.

Alcohol beverages

The new law raises excise taxes on distilled spirits to PHP42 per proof liter in 2020, PHP47 in 2021, PHP52 in 2022, PHP59 in 2023, and PHP66 per proof liter in 2024.

Excise taxes on distilled spirits will increase by 6 percent every year starting 2025. These are also different from the ad valorem tax imposed on the products which is equivalent to 22 percent of the price of the distilled spirits.

Distilled spirits include whisky, brandy, rum, gin and vodka, and other similar products or mixtures. Wine products are levied with a PHP50 excise tax per liter this year. The rate of excise tax will increase by 6 percent every year beginning 2021.

For beer products and other fermented liquors, a PHP35 excise tax per liter will be imposed starting this year, PHP37 per liter in 2021, PHP39 per liter in 2022, PHP41 per liter in 2023, and PHP43 per liter in 2024. Levies for beer products and other fermented liquors will increase by 6 percent every year starting 2025.

RA 11467 exempts tuba, basi, tapuy, and similar fermented liquors from higher excise taxes.

Tobacco products

Meantime, every pack of heated tobacco products with 20 units or more will have an excise tax of PHP25 in 2020, PHP27.50 in 2021, PHP30 in 2022, and PHP32 in 2023.

Excise taxes for salt nicotine products are at PHP37 per milliliter or a fraction thereof this year, PHP42 in 2021, PHP47 in 2022, and PHP52 milliliter or a fraction thereof in 2023.

For “freebase” or “classic” nicotine products, excise tax rate is raised to PHP45 per pack in 2020, PHP50 per pack in 2021, PHP55 per pack in 2022, and PHP60 per pack in 2023.

The excise tax for all vapor products will go up by 5 percent every year in the succeeding years. -(https://www.pna.gov.ph/articles/1091709)

Get Copy Here

Source: https://www.officialgazette.gov.ph/2020/01/