R.A No.

10963: Tax Reform for Acceleration and Inclusion (TRAIN)

R.A No. 8424: Tax Reform Act of 19978
R.a No. 8240: An act amending Sections 138, 140, & 142 Of the National Internal
Revenue Code, as amended,and for other purposes
R.A 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 FOE
OTHER PURPOSES.

Excise Tax
~ It is a tax on the production, sale or consumption of a comodity in the
country.

Types of Excise Tax

Specific Tax- this excise tax is based on weight or volume capacity or any
other physical unit.
Ad Valorem Tax- this excise tax is based on the selling price or any
specified volume of the goods.

Tax rate Formula

Specific Tax = # of units/other measurements * specific tax rate
Ad Valorem Tax = # of units/other measurements * selling price per unit * ad
valorem tax rate.

Major Classification of Excisable Articles and Related Codal section:

1. Alcohol Products
a.) Distilled Sprirts (Section 141) - subject to the provisions of Section
133 of this Code, an excise tax shall be levied, assessed and collected based on
the following schedules:
i. Effective on January 1, 2020
Ad valorem tax of 22% of net retail price (excluding excise and
VAT) + specific tax of P42 per proof liter
ii. Effective January 1, 2021
Ad valorem tax of 22% of net retail price (excluding excise and
VAT) + specific tax of P45 per proof liter
iii. Effective January 1, 2022
Ad valorem tax of 22% of net retail price (excluding excise and
VAT) + specific tax of P52 per proof liter
iiii. Effective January 1, 2023
Ad valorem tax of 22% of net retail price (excluding excise and
VAT) + specific tax of P59 per proof liter
iiiii. Effective January 1, 2024
Ad valorem tax of 22% of net retail price (excluding excise and
VAT) + specific tax of P66 per proof liter
iiiiii. Effective January 1, 2025
Specific tax should be increase by 6% every year thereafter,
through revenue regulations to be issued by the Secretary of Finance.

b.) Wines (Section 142) -

'Spirits or distilled spirits' is the substance known as ethyl alcohol, ethanol or

spirits of wine, including all dilutions, purifications and mixtures thereof, from
whatever source, by whatever process produced, and shall include whisky, brandy,
rum, gin and vodka, and other similar products or mixtures.

'Proof spirits' is liquor containing one-half (1/2) of its volume of alcohol of a

specific gravity of seven thousand nine hundred and thirty-nine thousandths
(0.7939) at fifteen degrees centigrade (15˚C). A 'proof liter' means a liter of
proof spirits.