An excise tax is a legislated tax on specific goods or services at purchase such as motor vehicles, fuel,

tobacco and alcohol.

BASIC CONCEPT:

 Excise tax is a tax on the production, sale or consumption of a commodity.

APPLICABILITY:

 For domestic sale

 For consumption
 For goods imported

Who will pay excise taxes?

 ET is primarily paid by businesses and merchants, who then apply it to the cost of their product.

Why do excise taxes exist?

 Excise taxes can be used to price an externality or discourage consumption of a product.

TYPES OF EXCISE TAX:

 Specific tax – excise tax based on weight or volume or measurement.

 Ad valorem tax – excise tax based on selling price or value of goods.

MAJOR CLASSIFICATION OF EXCISABLE ARTICLES AND RELATED CODAL SECTION (NIRC):

1. ALCOHOL PRODUCTS:
A. Distilled Spirits
B. Wines
C. Fermented Liquors

2. TOBACCO PRODUCTS:
A. Tobacco Products
B. Cigars & Cigarettes

3. MISCELLANEOUS ARTICLES:
A. Automobiles
B. Non-Essential Goods

4. PETROLEUM PRODUCTS

5. MINERAL PRODUCTS

PERSONS LIABLE TO EXCISE TAX:

IN GENERAL:

A. ON DOMESTIC OR LOCAL ARTICLES:

1. MANUFACTURER
2. PRODUCER

Owner or person having possession of articles.

B. ON IMPORTED ARTICLES:
1. IMPORTER
2. OWNER

Person who is found in possession of articles which are exempt from excise taxes.

ALCOHOL PRODUCTS

Distilled Spirit

 Obtained by distillation from wine or other fermented fruit or plant juice or from a starchy material.

Example: Rum, Gin, Vodka, Brandy, And Fortified Wines

Alcohol content: 15% - 98%

Fortified is a wine made up of grapes.

 Fortified wines containing more than twenty-five percent (25%) of alcohol.

Wine from fermented grapes.

 Yeast consumes the sugar in grapes and converts to ethanol, carbon dioxide.

Example: Red Wine, White Wine, Sparkling Wine (Champagne W/ Carbonation)

Alcohol content: 8% - 17%

The percent of alcohol in Champagne is approximately 12.2% which compares to 12.5% for Red wine.

Fermented Liquor

 contains the recreational drug ethanol, produced by fermentation of rice, grains, fruits, or other
sources of sugar.

Example: Malt, Beer Products

Alcohol content: 3% - 15%

COMPONENTS OF LIQUOR PRODUCTS:

Gauge Liter – total capacity of bottles and liters.

 Proof Liter – total strength and alcohol content.

Alcohol Content – standard measure of alcohol (ethanol) contained in a given volume.

Volume Capacity – total no. of cases, bottles and liters, or the entire shipment.

Net Retail Price – is the regular price through a price survey under oath.

FORMULAS FOR LIQUOR IMPORTATION:

GL = NO. OF BOTTLES X NO. OF LITERS

ET = GL X STR

PL = GL X (0.02 X AC)

ET = PL X STR (DISTILLED SPIRITS)

ET = NO. OF BOTTLES X NO. OF LITERS

ET = GAUGE LITER X STR

ET = NO. OF BOTTLES X NO. OF LITERS

ET = GAUGE LITER X (0.02 X AC)

ET = PROOF LITER X STR

OTHER FORMULA:

GL = NO. OF CASES X NO. OF BOTTLES X NO. OF LITERS

NOC = NO. OF BOTTLES

NO. OF BOTTLES PER CASE

VC = NOB X NO. OF LITERS PER BOTTLE

ET W/ VAT = ET X 1.12

SPECIFIC TAX RATES:

 RA 10351 - Sin Tax Reform Law

 RA 10963 - Train Law
 The specific tax rates will be increase by 4% each year effective on 2014.

Sparkling Wines ET Table – Specific Tax Rate per Liter

Still and Carbonated ET Table – Specific Tax Rate per Liter

Fermented Liquors ET Table – Specific Tax Rate per Liter

Fermented Liquors ET Table – Brewed and Sold at Micro Breweries

ALCOHOL CONTENT

NET RETAIL PRICE

 TAX REFORM FOR ACCELERATION AND INCLUSION ACT (TRAIN) LAW
What is the law governing the train law?
- REPUBLIC ACT 10963

When the train law was signed?

- DECEMBER 19, 2017

Who signed the train law?

- PRESIDENT RODRIGO R. DUTERTE

What government agency implement the train law?

- BUREAU OF INTERNAL REVENUE (BIR)

A. IMPORTATION OF ROMAN RED WINE WITH 1.5 LITERS AND TOTAL NO. OF BOTTLES OF 225,
COMPUTE THE GAUGE LITER.

FORMULA: GL     =      NO. OF BOTTLES    X     NO. OF LITERS

SOLUTION: GL     =      225 BOTTLES   X    1.5 LITERS

GL     =      337.50 LITERS

B. A SHIPMENT ARRIVED ON 2018 CONSISTING OF WHITE WINES WITH GAUGE LITERS OF 350
AND ALCOHOL CONTENT OF 10%, COMPUTE THE EXCISE TAX.

FORMULA: ET     =     GL     X    STR

SOLUTION: ET     =     350 LITERS    X     P 36.50 STR PER LITER

ET     =     P 12,775.00

C. DETERMINE THE TOTAL PROOF LITER OF A SHIPMENT, IF THE GAUGE LITER IS 260 AND
ALCOHOL CONTENT OF 12%.

FORMULA: PL      =       GL     X     (2 X AC)

SOLUTION: PL      =       260 LITERS     X     (2 X 0.12)

PL      =       260 LITERS     X      0.24
PL      =       62.40 LITERS
D. A SHIPMENT OF SPARKLING WINES ARRIVED ON 2019 WITH THE TOTAL PROOF LITER OF 450
AND NET RETAIL PRICE OF P 275.00, COMPUTE THE EXCISE TAX.

FORMULA: ET      =       PL     X     STR

SOLUTION: ET      =       450 LITERS     X     P 316.33

ET      =       P 142,348.50

E. THE BAR & LIQUORS BAR IMPORTED 120 BOTTLES OF APOLLO WINES FROM THAILAND ON
2017 CONTAINED IN TEN CARTONS WITH ALCOHOL CONTENT OF 14% AND 1.5 LITERS PER
BOTTLE, DETERMINE THE EXCISE TAX.

FORMULA: ET      =      NO. OF BOTTLES    X     NO. OF LITERS

ET      =      GAUGE LITER     X       STR

SOLUTION: ET      =      120 BOTTLES    X     1.5 LITERS

ET      =      180 GAUGE LITERS    X      P 35.10
ET      =      P 6,318.00

F. MR. WANG IMPORTING 550 BOTTLES OF MATADOR RUM FROM MEXICO ON 2016 WITH
ALCOHOL CONTENT OF 18% AND 1 LITER PER BOTTLE, DETERMINE THE EXCISE TAX.

FORMULA: ET      =      NO. OF BOTTLES    X     NO. OF LITERS

ET      =      GAUGE LITER     X       (2 X AC)
ET      =      PL      X      STR

SOLUTION: ET      =      550 B        X     1 L

ET      =      550 GL     X     0.36   (2 X .18)
ET      =      198 PL      X     P 67.49 STR PER LITER

ET      =      P 13,363.02

G. TEN (10) CASES OF NAPOLEON WINE ARRIVED AT NAIA WITH A TOTAL NO. OF BOTTLES OF 24
PER CASE AND 750 ML PER BOTTLES, DETERMINE THE GAUGE LITERS.

FORMULA: GL      =      NOC   X    NOB    X    NOL

SOLUTION: GL      =     10 C    X     24 B     X     0.75 L

GL      =     180 LITERS

750 ML / 1,000 LITERS  =   0.75 L

H. MS. EDRALIN IMPORTING 240 BOTTLES OF STILL WINES WITH 12 BOTTLES PER CASE,
DETERMINE THE NO. OF CASE IMPORTED.

FORMULA: NOC   =     NO. OF BOTTLES

NO. OF BOTTLES PER CASE
 

SOLUTION: NOC   =     240 BOTTLES

12 BOTTLES PER CASE
 
NOC   =     20 CASES

I. A SHIPMENT CONSISTING OF 960 BOTTLES OF RED WINE ARRIVED WITH 250 ML PER BOTTLE,
DETERMINE THE TOTAL VOLUME CAPACITY.
FORMULA: VC      =      NOB   X    NOL PER BOTTLE

SOLUTION: VC      =     960 B    X     0.25 L

VC      =     240 LITERS

J. THE HEAVEN RESTAURANT IMPORTING HAUSEN BEER FROM ITALY ON 2020 WITH THE NET
RETAIL PRICE OF P 45.00 PER BOTTLE AND PROOF LITER OF 160, DETERMINE THE EXCISE TAX
INCLUSIVE OF VAT.
FORMULA: ET W/ VAT    =     ET    X    1.12
ET W/ VAT    =     PL    X     STR

SOLUTION: ET W/ VAT    =     160 LITERS      X      P 26.43

ET W/ VAT    =     P 4,228.80      X     1.12
ET W/ VAT    =     P 4,736.26

POST TEST

A. A shipment of white wine with 750 ml and total no. of bottles of 130, compute the gauge
liter.
Formula:
GL= No. of Bottles x No. of Liters
Solution: 
GL= 130 x 0.75L
GL= 97.50 L
B. Air Asia Airline arrived in March 2020 having still wines with total gauge liters of 420 and
alcohol content of 18%, compute the excise tax.

Formula:
 ET = No. of Bottles x No. of Liters
              ET= GL x STR
Solution: 
ET= 420 L x  php 78.95
ET= Php 33,159.00

C. Compute the proof liter of a shipment, if the importer declared the gauge liter of 125 on
imported brandy from Germany with an alcohol content of 25%.
Formula:
 PL= GL x (0.02 x AC )
Solution: 
PL= 125L x ( 0.02 x 0.25 )
PL= 125 L x 0.50 L
PL= 62.50 L

D. A brand of sparkling wines arrived in June 2017 with the total proof liter of 765 and net retail
price of P 725.00, compute the excise tax.
Formula:
 ET = No. of Bottles x No. of Liters
 ET= PL x STR
Solution: 
ET = 765L x Php 818.89
ET = Php 626,450.85

E. Mr. Apolinario importing 855 bottles of Holland beer in April 2015 contained a net retail
price of P 37.50 and 550 ml per bottle, determine the excise tax. 
Formula: 
ET= No. of Bottles x No. of Liter
ET= GL x STR
Solution: 
ET= 855 x 0.55 = 470.25L
ET= 470.25L x Php 19.00
ET= Php 8,934.75
ET =      NO. OF BOTTLES    X     NO. OF LITERS
ET =       GAUGE LITER     X    SPECIFIC TAX RATE
ET =      GAUGE LITER     X       (0.02 X AC)
ET =      PROOF LITER      X      SPECIFIC TAX RATE
GL =      NO. OF BOTTLES    X     NO. OF LITERS

A. A SHIPMENT ARRIVED FROM CHINA IN 2014 OF A CARBONATED WINES WITH THE AC 15%, VC
OF 1 LITER, NRP OF P 200.00 AND GL 420 L. COMPUTE THE ET.

FORMULA: ET =       STR PER LITER   X    GL

 

SOLUTION: ET =       P 62.40 PER LITER    X     420 L

ET =       P 26,208.00

B. A SHIPMENT OF 1,500 CASES OF JOHNNY WALKER ARRIVED IN PORT OF LEGASPI, EACH

CASE CONTAINS 6 BOTTLES WITH EACH BOTTLE HAVING 1 LITER VOLUME CAPACITY RATED 86
PROOF. COMPUTE THE TOTAL VOLUME IN GL.

FORMULA: GL =       NOC   X    NOB    X    NOL

 
SOLUTION: GL =      1,500 C   X    6 B/C   X     1 L/B
GL =      9,000 L

C. A CONTAINER ARRIVED IN BASCO AIRPORT IN BATANES COMING FROM THAILAND ON JULY

02, 2017 CONSISTING OF PROCESSO PRODUCTS A CARBONATED WINES WITH THE AC 11%, VC
OF 1.5 LITERS, NRP OF P 350.00 AND WITH GL 275 LITERS. COMPUTE THE EXCISE TAX (ET).

FORMULA: ET =       STR PER LITER   X    GL

 
SOLUTION: ET =       P 35.10 PER LITER    X     275 L
ET =       P 9,652.50

D. MR. WONG FAT IMPORTING 3,450 CASES OF COURVOISIER BRANDY FROM SCOTLAND WHICH
WAS ARRIVED IN PORT OF LIMAY IN BATAAN, EACH CASE CONTAINS 12 BOTTLES AND EACH
BOTTLE WITH 2.5 LITERS VOLUME CAPACITY AND NRP OF 150 PER 750 ML. COMPUTE THE
TOTAL VOLUME IN GAUGE LITER (GL).

FORMULA: GL =       NOC   X    NOB    X    NOL

 

SOLUTION: GL =      3,450 C   X    12 B/C    X     2.5 L/B

GL =      103,500 LITERS
E. CARBONATED WINES ARRIVED WITH THE ET AMOUNT OF 37,440.00 AND GL OF 600 VOLUME
CAPACITY, COMPUTE THE ST RATE.

FORMULA: ST RATE     =    ET  
    GL
 
SOLUTION: ST RATE =    P 37,440.00
            600 GL
ST RATE     =    P 62.40
LONG TEST 1

A. Importation of Red Wine from Singapore with a gauge liter (GL) of 1,350, alcohol content (AC) of 12%,
volume capacity (VC) of 750 per bottle and 12 bottles per case. Compute the number of cases.

Formula: NOC   =    No. of GL   x   1 bottle    x   1 case

                                              No. of L         No. of B

Solution: NOC   =     1,350 GL   x     1 bottle         x    1 case

                        0.75L              12 bottle

Answer:  NOC= 150 cases

B. Determine the number of cases of Carlsberg beer in cans imported from Germany if the VC is 320 ml
per can with 24 cans per case and the GL of 7,680.

Formula: NOC   =       No. of GL   x   1 can     x    1 case

                    No. of L       No. of B

Solution: NOC   =     7,680 GL   x     1 can             x      1 case

                        0.32L              24bottle

Answer:  NOC= 1,000 cases

C. The sparkling wines imported from England in 2014 with the NRP of P 450.00, compute the NOB if the
ET is amounting to 56,250.00 and VC is 750 ml.

Formula:     NOB =         GL   x   1 bottle

                                         No of Liter

      GL =        ET    x     1 liter

          NRP per bottle

Solution: GL  =  Php 56,250.00   x       1 liter

              Php 260.00

GL  = 216.36 Liters

NOB =  216.36  GL   x   1 bottle

         0.75 L

NOB  = 289 bottles

D. Compute the % alcohol content by volume for 1,000 bottles of Vodka with total proof liters of 675 and
volume capacity of 750 ml per bottle.

Formula:    AC =          PL
                      GL    x    0.02
 
     GL =      No. of bottles    x     No. of liters

Solution: GL       =   1,000 bottles  x   0.75 L

GL = 750 L

AC =          675 PL 
                      750GL    x    0.02

Answer = 0.018 0r 1.8  %

 

E. An importation of brandy from Singapore consisting of 750 boxes with each bottle having a volume
capacity of 0.75 liters. Compute the total number of bottles if its total volume was 3,945 liters.

Formula: NOB   =      TVC

             VC

Solution: NOB       =      3,945 L

          0.75 L
Answer: 5,260 Bottles

ASSIGNMENT

A. Determine the volume capacity in ML per bottle for a shipment of 150 boxes of Red Wines with each box
containing 6 bottles rated at 12% alcohol content and the total volume capacity of 675 gauge liters.

FORMULA: NOB = No. of box  x  No of bottles per box

VC = GL
          NOB

SOLUTION: NOB = 150 boxes  x   6 bottle per box 

         = 900 bottles

VC=    675 GL
      900 bottles

VC =   0.75 L/750 ML (0.75 x 1000 = 750)

B. A shipment of Champagne had a total volume capacity of 840 liters, determine the bottles in each case if
each bottle contains 700 ml and total no of cases is 200.

FORMULA and SOLUTION:

NOB = TVC
VC

NOB PER CASE = NOB

    NOC
NOB = 840 L
0.7 L

NOB = 1,200 Bottles

NOB PER CASE = 1,200 bottles

200
NOB PER CASE = 6 Bottles Per Case

C. Importation of 500 bottles of champagne of 750 ml and with the NRP of P 600.00 per bottle. Compute
the ET to be paid and the total volume in ml.

FORMULA & SOLUTION: 

Total Volume in ML =  500 bottles  x 750 ml

 
Total Volume in ML =  375,000 TVC

ET= NRP  x  GL

ET= Php 600. 00 x 375 L

ET= Php 225, 000.00 

D. A total excise tax for a shipment of sparkling wines was computed at P 219,520.00 inclusive of VAT and
was based on the NRP of P 700.00 per liter (1 bottle per liter), determining the bottles were imported.

FORMULA:

ET = ET w/VAT ÷ 1.12

NOB = ET NRP

SOLUTION:

ET= P 219, 520.00   ÷  1.12

ET w/VAT = P 196, 000.00   ÷  P 700.00

    = 280 Bottles

E. A shipment consisting of 100 boxes of still wines had been imported on March 12, 2014 with a degree of
strength of 8% alcohol content by volume, if the excise tax was P 23.40 per bottle and its total volume was
600 liters, determine the total number of bottles were imported.

FORMULA & SOLUTION:

No of liter per box =     600 L

           100 box

       =  6 box

= 600 L  x  (2  x  0.08) 

= 600 L x 0.16

= 96 L

NOB =   96L
               6L

NOB = 16 bottles per box

NOB = 100 boxes  x  16 bottles per box

NOB = 1,600 bottles

WHAT IS THE SPECIFIC TAX RATE FOR 2018 SPARKLING WINE, IF THE NRP PER BOTTLE IS
P 350.00? - P 304.16
WHAT IS THE SPECIFIC TAX RATE FOR 2016 STILL WINE, IF THE ALCOHOL CONTENT PER
VOLUME IS 10%? - P 33.75
WHAT IS THE SPECIFIC TAX RATE FOR 2014 FERMENTED LIQUOR, IF THE ALCOHOL CONTENT
PER VOLUME IS P 32.50? - P 17.00
WHAT IS THE SPECIFIC TAX RATE FOR 2016 BREWED AND SOLD AT MICRO BREWERIES
(FERMENTED LIQUOR)? - P 31.50

WHAT IS THE SPECIFIC TAX RATE FOR 2019 CARBONATED WINE, IF THE ALCOHOL CONTENT
PER VOLUME IS 14%? - P 37.96

EXERCISE 4
A. A PRODUCT OF STILL AND CARBONATED WINES ARRIVED AT NAIA ON APRIL 22, 2018 WITH
THE ET AMOUNTING TO P 65,691.00 WITH THE GL OF 900 VOLUME CAPACITY, COMPUTE THE ST
RATE.

FORMULA: ST RATE =    ET
    GL
 
SOLUTION: ST RATE =    P 65,691.00
            900 GL
 
ST RATE =     P 72.99
B. IMPORTATION OF BURGUNDY WHITE WINE COMING FROM EUROPE ARRIVED IN CLARK
AIRPORT WITH A GAUGE LITER (GL) OF 2,100, ALCOHOL CONTENT (AC) OF 24%, VOLUME
CAPACITY (VC) OF 250 PER BOTTLE AND 48 BOTTLES PER CASE. COMPUTE THE NUMBER OF
CASES.

FORMULA: NOC   =       NO. OF GL X 1 BOTTLE    X   1 CASE

 NO. OF L       NO. OF B

SOLUTION:
    NOC   =       2,100 GL X   1 BOTTLE   X   1 CASE
                            0.25 L       48 BOTTLES

NOB =    175 CASES

C. A CARTONS OF FERMENTED LIQUORS ARRIVED IN ILOCOS AIRPORT CONSIGNED TO MR.

ALLEN A. MARCOS, DETERMINE THE NUMBER OF CASES (NOC) OF MOUNTAIN GOAT BEER A
PRODUCT FROM AUSTRALIA, IF THE VC IS 440 ML PER BOTTLE AND WITH 18 BOTTLES PER CASE
AND THE GL OF 5,940 LITERS.

FORMULA: NOC   =       NO. OF GL X 1 CAN    X   1 CASE

NO. OF L       NO. OF B

SOLUTION:
              NOC  =       5,940 GL   X   1 CAN    X   1 CASE
                          0.44 L            18 BOTTLES

NOC   =       750 

D. THE ROEDERER ESTATE BRUT (MAGNUM) A PRODUCT OF SPARKLING WINE BOARDED ON

QATAR AIRLINES COMING FROM UNITED ARAB EMIRATES ARRIVED ON JUNE 12, 2019 WITH THE
NET RETAIL PRICE (NRP) OF P 850.00, COMPUTE THE NOB IF THE EXCISE TAX (ET) IS P 47,828.34
AND VC IS 750 ML.

FORMULA:     NOB =         GL   X    1 BOTTLE

NO OF L
 
    GL =        ET    X     1 LITER
NRP PER BOTTLE

SOLUTION:
   1) GL =        P 47,828.34    X     1 LITER
P 885.71

GL =       54 L

 
          2) NOB =         54 L    X      1 BOTTLE
0.75 L

NOB =         72
E. THE SHIPMENT OF CHOPIN VODKA A BRILLIANT POLISH POTATO VODKA NAMED AFTER THE
FAMOUS COMPOSER FREDERICK CHOPIN, COMPUTE THE % ALCOHOL CONTENT (AC) BY
VOLUME FOR 5,250 BOTTLES OF CHOPIN VODKA IF TOTAL PROOF LITERS (PL) OF 3,024 AND
VOLUME CAPACITY (VC) OF 450 ML PER BOTTLE.

FORMULA: AC = PL
GL X 0.02
GL = NO. OF BOTTLES    X     NO. OF LITERS

SOLUTION:
   1) GL =      5,250 BOTTLES    X     0.45 LITERS
GL =      2,362.50 LITERS

2) AC = 3,024 PL     
2,362.50 GL X 0.02
= 3,024 PL
47.25 GL
AC =      64%

ASSESSMENT
A. An importation of Old Kenigsberg brandy arrived from New Zealand consisting of 1,450 boxes and each
bottle having a volume capacity of 0.50 liters. Compute the total number of bottles (NOB) if the total volume
capacity is 3,825 liters.

Formula: NOB =      TVC

        VC

Solution:
NOB =      3,825 L 
          0.50 L

NOB =     7,650 Bottles

B. Mr. Lee Feung Suy imported Red Wine from Italy arrived in Port of Puerto Princesa, Palawan, compute
the volume capacity (VC) in ML per bottle for a shipment of 220 boxes and each box containing 24 bottles
and 16% alcohol content (AC) and the total volume capacity (VC) of 1,848 gauge liters.

Formula:    VC =      GL
                                      NOBx
 
   NOB =      Total NOBx   x    NOB per box

Solution: VC =    1,848
                      220 bx

=   8.4
 
NOB =   220 boxes  x    24 bottles per box
 =   5,280 Bottles

C. The importation of Taittinger Champagne, one of the most famous family-run brands with a total volume
capacity (VC) of 450 liters, compute the bottles (NOB) per case if in each bottle it contains .25 liters and
total no of cases is 150.

Formula:     NOB per case   =     No. of bottles

     No. of cases
      
  NOB   =     No. of liters    x     1 bottle  
                  No. of liters

Solution: NOB per case   =     1800 bottles

       150 cases
  
    =     12 Bottles
      
     NOB   =     450 L    x     1 bottle  
               .25 L

  =     1,800 Bottles

 
D. The Fox Bar & Liquors imported 250 bottles of Laurent-Perrier Champagne with 350 ml and net retail
price (NRP) amounting to P 455.00 per bottle, the shipment arrived on February 8, 2019 in Port of Clark.
Determine the excise tax (ET) to be paid and the total volume in ml if the alcohol content is 12%.

Formula:    ET =      STR   x    No. of L   x    NOB

            GL          Bottle

     VC =      NOB   x    No. of ml per bottle

Solution:

ET =      316.33   x   .35 L   x   250 bottles

                 87.5 L    455 NRP Per Bottle

=      Php 70.00

VC =      250 B   x    350 ml TV in ML = 87,500

    1000
=      87,500 L = 87.5 L

E. A shipment of sparkling wines with a total excise tax of P 111,103.46 inclusive of VAT was appraised by
BOC-Subic based on the NRP of P 400.00 per liter of 1 bottle, compute the excise tax (ET) without VAT
and the number of bottles (NOB) were imported, if the alcohol content of each bottle is 10%, the shipment
arrived on December 10, 2019.

Formula:    ET w/out VAT =      Total ET

         1.12
          GL =      ET w/out VAT
  STR
       NOB =     GL   x   VC
 Solution:

ET w/out VAT =      Php 111,103.46

             1.12
 
=       Php 99,199.52

          GL =      Php 99,199.52

316.33
=      313.60 L
 

 NOB =     313.60 L   x   0.001

=     0.31 x 1000
=      310 Bottles
EXERCISE 5
51. IMPORTATION OF 6 BOTTLES PER CASE OF SPARKLING WINES AND PAID P 18,720.00 EXCISE
TAX NET OF VAT, IF THE NRP PER LITER IS P 653.00, DETERMINE THE NUMBER OF CASES OF 750
ML BOTTLES WERE BROUGHT IN.

FORMULA: NOC =      NO. OF BOTTLES

NO. OF BOTTLES PER CASE
NOB =      GL
NO OF LITERS
GL =       ET
STR
NRP/750 ML =      NRP /LITER   X    1 L       X     NO. OF ML
LITER             1,000 ML

SOLUTION:
1) NRP/750 ML =  P 653.00 /L   X   1 LITER       X     750 ML
            LITER             1,000 ML
 
NRP/750 ML =      P 489,750 ML
                        1,000 ML
 
NRP/750 ML =      P 489.75
 
2) GL =      P 18,720.00 ET
  P 260.00 PER LITER
 
GL =      72 L

3) NOB =      72 L
        0.75 L (750 ML/1,000)
 
NOB =      96 BOTTLES

   
4) NOC =      96 BOTTLES
6 BOTTLE PER CASE
 NOC =      16 CASES
52. MR. EFREN R. CORDOVA IMPORTING 10 BOTTLES PER CASE OF JEWESS SPARKLING WINES
ON SEPTEMBER 23, 2017 AND HE PAID P 24,350.00 EXCISE TAX NET OF VAT, IF THE NRP PER
LITER IS P 865.00, COMPUTE THE NUMBER OF CASES (NOC) OF 550 ML BOTTLES IF THE
ALCOHOL CONTENT OF 12%.
FORMULA: NOC =      NO. OF BOTTLES
NO. OF BOTTLES PER CASE

NOB =      GL
NO OF LITERS
GL =       ET
STR
NRP/750 ML =      NRP /LITER   X    1 L       X     NO. OF ML
LITER             1,000 ML

SOLUTION:   

1) NRP/750 ML =      P 865.00 /L   X    1 L       X     550 ML

LITER             1,000 ML
 
NRP/750 ML =      P 475,750 ML
1,000 ML
 
NRP/750 ML =      P 475.75
 
2) GL =      P 24,350.00 ET
P 292.46 PER LITER
 
GL =      83.26 L

3) NOB =      83.26 L
0.55 L (550 ML/1,000)
 
NOB =      151 BOTTLES
 

4) NOC =      151 BOTTLES

        10 BOTTLE PER CASE
 
NOC =      15 CASES

A. DETERMINE THE EXCISE TAX RATE PER BOTTLE OF THE WHISKEY IMPORTED FROM
ENGLAND WITH THE NRP OF P 480.00 PER 500 ML PER BOTTLE.

FORMULA: ET/B =     ET/PL   X    NO OF LITER

            LITER              BOTTLE

ET/PL =     (0.15 X NRP/L) + 20

 
       NRP/L =      NRP    X    1 BOTTLE     X    1,000 ML
BOTTLE      NO OF ML          LITERS
B. AN IMPORTATION OF 200 CARTONS OF BRANDY RATED AT 80 PROOF WITH EACH CARTON
CONTAINING 12 BOTTLES OF 750 ML VOLUME CAPACITY PER BOTTLE, IF THE NET RETAIL PRICE
IS P 180 PER BOTTLE, COMPUTE THE NRP PER LITER AND THE EXCISE TAX.

FORMULA: PL =      (GL) (0.01 X PF %)   

 
GL =      NO OF CTNS   X    NOL     X     NOB
BOTTLE        CASE
 
NRP/L =      NRP    X    1 BOTTLE     X    1,000 ML
    BOTTLE       NO. OF ML        LITERS
 
ET  =       PL    X   {(0.15 X NRP/L) + 20}

C. ABC TRADING IMPORTING CARLSBERG BEER FROM GERMANY WITH 1,000 CASES OF BEER IN
1,000 ML PER BOTTLE AND EACH CASE CONTAINING 6 BOTTLES WITH 5% ALCOHOL CONTENT,
COMPUTE THE TOTAL EXCISE TAX INCLUSIVE OF VAT IF THE NRP IS P 70.00 PER BOTTLE.

FORMULA: ET W/ VAT = ET W/OUT VAT    X    1.12

 
   ET =      GL   X     STR PER GL
 
    GL =     NOC   X    NOB     X       NOL
  CASE             BOTTLE
WHAT IS THE SPECIFIC TAX RATE FOR 2013 SPARKLING WINE, IF THE NRP PER BOTTLE IS P
720.00? - P 700.00
WHAT IS THE SPECIFIC TAX RATE FOR 2014 STILL WINE, IF THE ALCOHOL CONTENT PER
VOLUME IS 22%? - P 62.40
WHAT IS THE SPECIFIC TAX RATE FOR 2018 FERMENTED LIQUOR, IF THE ALCOHOL CONTENT
PER VOLUME IS P 62.00? - P 24.44
WHAT IS THE SPECIFIC TAX RATE FOR 2018 BREWED AND SOLD AT MICRO BREWERIES
(FERMENTED LIQUOR)? - P 34.07
WHAT IS THE SPECIFIC TAX RATE FOR 2020 CARBONATED WINE, IF THE ALCOHOL CONTENT
PER VOLUME IS P18%? - P 78.95

ASSIGNMENT
56. A SHIPMENT ARRIVED AT PORT OF CEBU ON 2014 OF CHAMPAGNE WITH THE NRP OF P
600.00 PER LITER AND NOB OF 12,000, COMPUTE THE TOTAL EXCISE TAX WITH VAT IF THE
VOLUME CAPACITY IS 750 ML PER LITER.

57. THE ALFRANCIS BAR & HOTEL IMPORTING 7 BOTTLES OF VANHUR WINES, A BRAND OF
SPARKLING WINES COMING FROM AUSTRALIA, THE SHIPMENT ARRIVED ON MARCH 7, 2019. THE
CONSIGNEE PAID THE AMOUNT OF P 16,550.00 FOR THE EXCISE TAX (ET) WITH THE NRP PER
LITER OF P 975.00, DETERMINE THE NUMBER OF CASES (NOC) OF 850 ML EACH BOTTLES IF THE
ALCOHOL CONTENT OF 18%.

58. MR. GUILLERMO PEREZ, IMPORTING 60 CARTONS OF GENERAL HARD BRANDY SERIES 11
ARRIVED IN PORT OF DAVAO ON OCTOBER 2, 2018, BASED ON THE ASSESSMENT, THE
SHIPMENT HAVE 60 PROOF AND EACH CARTON CONTAINED 18 BOTTLES AND 250 ML VOLUME
CAPACITY (VC) PER BOTTLE, WITH NET RETAIL PRICE (NRP) OF P 220 PER BOTTLE, COMPUTE
THE NRP PER LITER AND EXCISE TAX (ET).