RMO No. 07-2005 — Renames/creates Alphanumeric Tax Codes for alcohol and tobacco products with the corresponding revised Excise Tax rates effective January 1, 2005 Digest | Full Text

REPUBLIKA NG PILIPINAS KAGAWARAN NG PANANALAPI KAWANIHAN NG RENTAS INTERNAS March 22, 2005 REVENUE MEMORANDUM ORDER NO. 7-2005 SUBJECT : Renaming of Alphanumeric Tax Codes (ATCs) and Revised Rates and Bases of Excise Tax on Tobacco and Alcohol Products TO : All Internal Revenue Officers and Others Concerned I. Objective : To facilitate proper identification and monitoring of volume of removals and excise tax payments declared per BIR Forms 2200A (Excise Tax Return for Alcohol Products) and 2200T (Excise Tax Return for Tobacco Products) for Integrated Tax System (ITS) and e-Filing Payment System (eFPS) purposes, the Alphanumeric Tax Codes (ATCs) on Alcohol and Tobacco Products are hereby renamed/created together with their corresponding revised excise tax rates in view of the enactment of Republic Act No. 9334 effective January 1, 2005. II. List of renamed/created ATCs together with the corresponding revised excise tax rates under the new Republic Act No. 9334 effective January 1, 2005: Alpha Numeric TAX RATES Tax Code (ATC) PRODUCTS Old New FROM TO (1) Distilled Spirits Per proof liter Per proof liter XA010 XA010 (a) If produced from the sap of nipa, coconut, cassava, camote, or P 8.96 P 11.65 buri palm or from the juice, syrup or sugar of the cane; XA020 XA010 If produced in a pot still by small distillers (up to 100 liters/day P 4.48 P 11.65 and 50% alcohol by volume) XA031 XA031 (b) If produced from raw materials other than those enumerated in P 84.00 P 126.00 XA032 XA032 the preceding paragraph P 168.00 P 252.00 XA033 XA033 The tax shall be in accordance with the net retail price P 336.00 P 504.00 XA040 XA040 (excluding the excise and value-added taxes) per bottle of seven hundred fifty milliliter (750 ml.) volume capacity, as follows: (1) Less than Two Hundred and Fifty Pesos (< P250.00) (2) Two Hundred and Fifty Pesos (P250.00) up to Six Hundred and Seventy Five Pesos (P675.00) (3) More than Six Hundred and Seventy Five Pesos (>P675.00) (c) Medicinal preparations, flavoring extracts, and all other preparations, except toilet preparations, of which, excluding water, distilled spirits form the chief ingredient, shall be subject to the same tax as such chief ingredient

(2) Wines Per liter Per liter (a) Sparkling wines / champagnes P 112.00 P 145.60 P 336.00 P 436.60 The tax shall be in accordance with the net retail price (excluding the excise and value-added taxes) per bottle, regardless of proof, as follows: XA061 XA061 (1) Five Hundred Pesos (<P500.0) or less XA062 XA062 (2) More than Five Hundred Pesos (>P500.0) XA070 XA070 (b) Still wines containing fourteen percent (14%) of alcohol by P 13.44 P 17.47 XA080 XA080 volume or less P 26.88 P 34.94 XA090 XA090 (c) Still wines containing more than fourteen percent (14%) of alcohol by volume but not more than twenty-five percent (25%) of alcohol by volume Fortified wines containing more than twenty-five percent (25%) of alcohol by volume shall be taxed as distilled spirits (3) Fermented liquors Per liter Per liter The tax shall be in accordance with the net retail price (excluding excise and value-added taxes) per liter of volume capacity, as follows: XA051 XA051 (1) Less than Fourteen Pesos and Fifty Centavos (<P14.50) P 6.89 P 8.27 P 6.99 P 8.27 XA052 XA052 (2) Fourteen Pesos and Fifty Centavos (P14.50) up to Twenty-two P 7.07 P 8.27 Pesos (P22.00) P 7.61 P 8.27 P 7.62 P 8.27 P 7.92 P 8.27 P 10.25 P 12.30 P 10.48 P 12.30 XA053 XA053 (3) More than Twenty-two Pesos (>P22.00) Per liter Per liter P 13.61 P 16.33 Regardless of the net retail price, fermented liquors brewed and P 14.02 P16.33 sold at micro-breweries or small establishments such as pubs and P 20.72 P 20.72 restaurants shall be taxed at P16.33 per liter. P 22.30 P 22.30 P 27.28 P 27.28 XT010 XT010 (1) Tobacco Products P 0.75 P 1.00 (a) Tobacco twisted by hand or reduced into a condition to be per k.g. per k.g. consumed in any manner other than the ordinary mode of drying and curing; P 0.60 P 0.79 per k.g. per k.g. (b) Tobacco prepared or partially prepared with or without the use of any machine or instrument or without being pressed or sweetened; and (c) Fine-cut shorts and refuse, scraps, clippings, cuttings, stems, midribs and sweepings of tobacco; XT020 XT020 (2) Chewing tobacco

XT030 (3) Cigars P 1.12 per cigar The tax shall be in accordance with the net retail price (excluding excise (NEW and value-added taxes) per cigar, as follows: - Ten Percent (10%) of ATCs) (1) Five Hundred Pesos (=<P500.00) or less the net retail price * XT031 XT032 (2) More than Five Hundred Pesos (>P500.00) Fifty Pesos (P50.00) plus Fifteen Percent *The tax rate shall in no case be lower than P1.12 as provided (15%) of the net retail in the Tax Code of 1997. price in excess of Five XT040 XT040 (4) Cigarettes Packed by Hand Per pack Hundred Pesos (P500.00) P 0.40 P 0.40284 Per pack P 2.00 P 2.00 P 0.48 P 2.00 XT130 XT130 (5) Cigarettes Packed by P 0.48204 P 2.00 Machine P 0.49 P 2.00 Per pack Per pack The tax shall be in accordance with the net retail price (excluding excise and value-added taxes) per pack, as follows: P 1.12 P 2.00 P 3.30 P 3.30 (a) Below Five Pesos (<P5.00) P 5.50 P 5.50 (should be XT070 XT070 (b) Five Pesos (P5.00) but does not exceed Six Pesos and Fifty transferred under the Centavos (P6.50) P 2.00 bracket) P 5.60 P 6.35 P 5.85 P 6.35 P 6.96 P 6.96 XT060 XT060 (c) More than Six Pesos and Fifty Centavos (>P6.50) but does not P 8.96 P 10.35 XT050 XT050 exceed Ten Pesos (P10.00) P 13.44 P 25.00 (d) More than Ten Pesos (>P10.00) XT080 XT080 (6) Tobacco Inspection Fees P 0.50 P 0.50 (a) For each thousand cigars or fraction thereof P 0.10 P 0.10 P 0.02 P 0.02 XT090 XT090 (b) For each thousand cigarettes or fraction thereof P 0.03 P 0.03 XT100 XT100 (d) For each kilogram of leaf tobacco or fraction thereof XT110 XT110 (e) For each kilogram or fraction thereof of scrap and other manufactured tobacco III. Repealing Clause : This Order supersedes all revenue issuances or portions thereof inconsistent herewith. IV. Effectivity: This Order takes effect immediately. (Original Signed) GUILLERMO L. PARAYNO, Jr. D-5 Commissioner of Internal Revenue