RMO No. 20-2020 — Creates and modifies the Alphanumeric Tax Code (ATC) for Excise Tax on Tobacco Products, Heated Tobacco Products and Vapor Products pursuant to the implementation of Republic Act Nos. 11346, 11467 and 10351

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNALREVENUE nTYN JUL 0 8 2020 a:050M C

Quezon City RECORDS MGT. DIVISION

March 6, 2020

REVENUE MEMORANDUM ORDER NO. 20- 2030

SUBJECT Creation and Modification of Alphanumeric Tax Code (ATC) for Excise Tax on Tobacco Products, Heated Tobacco Products and Vapor Products Pursuant

to the Implementation of Republic Act (RA) No. 11346 (An Act Increasing the Excise Tax on Tobacco Products, Imposing Excise Tax on Heated Tobacco Products and Vapor Products, Increasing the Penalties for Violations of Provisions on Articles Subject to Excise Tax, and Earmarking a Portion of the Total Excise Tax Collection from Sugar-Sweetened Beverages, Alcohoi, Tobacco, Heated Tobacco and Vapor Products for Universal Health Care Amending for this Purpose Sections 144, 145 146, 147, 152, 164, 260, 262, 263, 265, 288 and 289, Repealing Section 288(B) and 288(C), and Creating New Sections 263-A, 265-B and 288-A of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 10963. and for Other Purposes); RA 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); and RA No. 10351 (An Act Restructuring the Excise Tax on Alcohol and Tobacco Products by Amending Sections 141, 142, 143, 144, 145, 8, 131 and 288 of Republic Act No. 8424 Otherwise Known as the National internal Revenue Code of 1997, as Amended by Republic Act No. 9334, and for Other Purposes)

TO All Collection Agents, Revenue District Officers and Other Internal Revenue Officers Concerned

I OBJECTIVE:

on Tobacco Products, Heated Tobacco Products and To facilitate the proper identification and monitoring of tax collection from Excise Tax Vapor Products, connection with the implementation of RA Nos. 11346, 11467 and 10351, and for inciusion in BiR Form No. 2200-T (Excise Tax Return for Tobacco Products).

Y THE FOLLOWING ATCs ARE HEREBY CREATED:

ATC Description Tax Rate Legal Basis BIR Form No.

XT160 XT 155 Cigarettes Packed by Machine On Heated Tobacco Products Effective January 1, 2020 Effective January 1, 2021 Effective January 1, 2021 Effective January 1, 2022 Effective January 1, 2020 Effective January 27, 2020 Effective January 1, 2023 Effective January 1, 2022 Effective January 1, 2023 R 45.00 per pack p 50.00 per pack P 55.00 per pack P 60.00 per pack P 10.00 per pack P 25.00 per pack P 27.50 per pack P 30.00 per pack P 32.50 per pack RA Nos. RA No. 11346 11346 11467 and 2200-T

XT165 Vapor Products Effective January 1, 2020 to January 26, 2020 00.00 ml to 10.00 ml 30.01 mi to 40.00 ml 20.01 ml to 30.00 ml 40.01 ml to 50.00 ml More than 50.00 mi 10.01 ml to 20.00 ml P 50.00 plus P10.00 for every additional 10.00 ml P 50.00 P 10.00 P 20.00 P 30.00 P 40.00 RA No. 11346

ATC Description Tax Rate Legal Basis BIR Form NO.

XT170 On Vapor Products a. Nicotine Salt or Salt Nicotine Effective January 1, 2021 Effective January 27, 2020 Effective January 1, 2022 Effective January 1, 2023 P 37.00 per mililiter p 42.00 per milliliter P 47.00 per milliliter R 52.00 per milliliter RA. No. 11467 2200-T

XT180 b. Conventionai Freebase or 'Classic' Nicotine Effective January 27, 2020 Effective January 1, 2021 Effective January 1; 2022 Effective January 1, 2023 P 55.00 per Ten (10) milliliters P 45.00 per Ten (10) milliiters P 50.00 per Ten (1o) milliliters P 60.00 per Ten (10) milliliters

XT190 XT200 Inspection Fee Heated Tobacco Products Vapor Products P 0.10 per 1000 unit of heated P 0.01 per mililiter tobacco products RA No. 11346

I. THE FOLLOWING ATCs ARE HEREBY MODIFIED:

ATC EXISTING (per ATC Handbook) Description Tax Rate Description MODIFIED/NEW Tax Rate Legal Basis FORM BIR NO.

XT010 Tobacco Products a. Tobacco twisted by hand or Effective January 1, 2013 reduced into a condition to of drying and curing Effective January 1, 2015 Effective January 1, 2016 be consumed in any manner other than the ordinary mode Effective January 1, 2014 Effective January 1, 2017 p 1.89/kg p 2.05/kg P 1.75/kg p 1.82/kg p 1.97/kg Tobacco Products a Tobacco twisted by hand or reduced into a condition to be consumed in any manner Effective January 1, 2020 Effective January 1, 2022 Effective January 1, 2023 other than the ordinary mode of drying and curing Effective January 1, 2021 p 2.40/kg p 2.50/kg P 2.31/kg P 2.60/kg RR No. RA No. 17-2012 10351 2200T

b. Tobacco prepared or partially prepared with or without being pressed or Effective January 1, 2014 Effective January 1, 2017 without the use of any machine or instrument or sweetened Effective January 1, 2015 Effective January 1, 2016 Effective January 1, 2013 P 1.75/kg p 1.82/kg p 2.05/kg p 1.89/kg P 1.97/kg b without being pressed or Effective January 1, 2021 Tobacco prepared or machine or instrument or Effective January 1, 2020 Effective January 1, 2022 Effective January 1, 2023 partially prepared with or without the use of any sweetened p 2.40/kg p 2.60/kg P 2.31/kg p 2.50/kg

C. Effective January 1, 2013 Fine-cut shorts and refuse. scraps, clippings, cuttings, stems, midribs and sweepings of tobacco Effective January 1, 2014 Effective January 1, 2015 Effective January 1, 2016 Effective January 1, 2017 P 1.75/kg p1.89/kg p 2.05/kg P 1.82/kg P 1.97/kg C Fine-cut shorts and refuse, Effective January 1, 2020 scraps, clippings, cuttings, sweepings of tobacco Effective January 1, 2022 Effective January 1, 2023 stems, midribs and Effective January 1, 2021 p 2.40/kg P 2.31/kg P 2.50/kg p 2.60/kg

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XT020 ATC Chewing Tobacco Unsuitable for Use in Any Other Manner EXISTING (per ATC Handbook} Effective January 1, 2016 Effective January 1, 2013 Effective January 1, 2014 Effective January 1, 2015 Effective January 1, 2017 Description p 1.56/kg p 1.62/kg Tax Rate P 1.50/kg p 1.68/kg p1.75/kg Chewing Tobacco Unsuitable for Use in Any Other Manner Effective January 1, 2021 Effective January 1, 2023 Effective January 1, 2020 Effective January 1, 2022 Description MODIFIED/NEW R 1.97/kg p 2.05/kg p 2.13/kg Tax Rate p 2.22/kg 17-2012 RA No. RR No. Legal Basis 10351 2200-T FORM BIR NO.

XT035 Cigars a Ad Valorem Tax Based On the Net Retail Price (NRP) per Cigar [excluding Effective'January 1, 2013 Effective January 1: 2014 Effective January 1, 2017 the excise and value-added tax (VAT)] Effective January 1, 2015 Effective January 1, 2016 20% NRP/cigar 20% NRP/cigar 20% NRP/cigar 20% NRP/cigar 20% NRP/cigar a." Ad Valorem Tax Based Cigars Effective January 1, 2021 Effective January 1, 2022 on the Net Retail Price (NRP) per Cigar [excluding the excise and value-added tax (VAT)] Effective January 1, 2020 Effective January 1, 2023 20% NRP/cigar 20% NRP/cigar 20% NRP/cigar 20% NRP/cigar RA No 11346

XT036 b Specific Tax Effective January 1, 2013 Effective January 1, 2016 Effective January 1, 2017 Effective January 1, 2014 Effective January 1, 2015 R 5.00/cigar p 5.20/cigar p 5.41/cigar P 5.62/cigar R 5.85/cigar D Specific Tax Effective January 1, 2021 Effective January 1, 2022 Effective January 1, 2020 Effective January 1, 2023 P 6.57/cigar P 6.83/cigar p 7.10/cigar P 7.38/cigar

XT040 Cigarettes Packed by Hand Cigarettes Effective January 1, 2013 Effective January 1, 2014 Effective January 1, 2015 Effective January 1, 2016 Effective January 1, 2017 p 15.00/pack R 18.00/pack R 12.00/pack P 21.00/pack R 30.00/pack Cigarettes Cigarettes Packed by Hand Effective January 1, 2020 Effective January 1, 2021 Effective January 1, 2022 Effective January 1, 2023 p 50.00/pack p 55.00/pack P 45.00/pack P 60.00/pack

N REPEALING CLAUSE:

herewith. This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent

V EFFECTIVITY:

This RMO shall take effect immediately.

N wa

Commissioner of Internal Revenue CAESAR R. DULAY

B-3 035704

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