EXCISE TAX

 A tax levied on a specific article rather

than one upon the performance, carrying
on, or the exercise of an activity.
 Considered taxes on production as they
are collected only from manufacturers
and producers.
 GOODS SUBJECT TO
EXCISE TAXES
1. Certain goods manufactured or
produced in the Philippines for
domestic sale or consumption or for
any other disposition;
2. Certain goods/things imported into
the Philippines.
GOODS SUBJECT TO EXCISE
TAXES
a) Alcohol products
b) Tobacco products
c) Petroleum products
d) Automobiles
e) Non-essential goods
f) Mineral products
TWO KINDS OF EXCISE
TAXES
SPECIFIC TAX – refers to the excise tax
imposed which is based on weight or
volume capacity or any other physical unit
of measurement.

AD VALOREM TAX – refers to the

excise tax which is based on selling price
or other specified value of the goods.
PERSONS LIABLE TO FILE
AND PAY EXCISE TAXES
1. In the case of domestic articles
- collected from manufacturers or
producers before removal of the domestic
products from the place of production.
2. In the case of imported articles
- importer or owner of an imported
article .
IMPORTER – owner of the goods at the time
of withdrawal thereof from the
customhouse.
NOTE: Every person liable to pay excise tax
shall file a separate return of each place of
production, the description and quantity or
volume of products to be removed, the
applicable tax base and the amount of tax
due.
3. In the case of indigenous petroleum,
natural gas or liquefied natural gas
- shall be paid by the first buyer, purchaser
or transferee for local sale, barter or
transfer
4. In the case of exported products
- shall be paid by the owner, lessee,
concessionaire or operator of the mining
claim.
NOTE: If the domestic product was
removed from the place of production
without the payment of the tax, the
owner or person having possession
thereof shall be liable for the tax due
thereon.
TIME OF FILING OF RETURN
AND PAYMENT OF THE
EXCISE TAX
1. On locally manufactured
petroleum products and indigenous
petroleum
- before removal from the place of
production
2. On non-metallic mineral or mineral
products, or quarry resources
- upon removal of such products from the
locality where mined or extracted.
3. On locally produced or extracted
metallic mineral or mineral
products
- 15 days after the end of the calendar
quarter when such products were
removed.
4. On imported mineral or mineral
products, whether metallic or non-
metallic
- Before their removal from customs
custody.
PLACE FOR FILING OF THE
RETURN AND PAYMENT OF
THE TAX
 The excise tax shall be filed with and the
tax paid to any AAB or Revenue
Collection Officer, or duly authorized
City or Municipal Treasurer in the
Philippines.
CREDIT FOR EXCISE TAX ON
GOODS ACTUALLY
EXPORTED
Any excise tax paid thereon shall be
credited or refunded upon
submission of the proof of actual
exportation and upon receipt of the
corresponding foreign exchange
payment.
EXN: Mineral products
EXN-EXN: Coal and coke
NOTE: Excise tax may be passed on to
end consumer but direct liability for the
tax remains with manufacturer or
producer.
 The tax is directly levied on the
manufacturer upon removal of the taxable
goods from the place of production but in
reality, the tax is passed on to the end
consumer as part of the selling price of
goods sold.
WHO CAN CLAIM FOR THE
REFUND?
A proper party that can seek a refund of
an indirect tax is the statutory
taxpayer.
STATUTORY TAXPAYER – person on
whom the tax is imposed by law and who
paid the same even if he shifts the burden
to another.
RATE AND BASIS OF THE
EXCISE TAX ON IMPORTED
ARTICLES
 Unless otherwise specified, imported
articles shall be subject to the same rates
and basis of excise taxes applicable to
locally manufactured articles.
RULES ON COMPUTING
CONTENTS OF CASK OR
PACKAGE
1. Every fractional part of a proof liter
equal to or greater than a half liter in a
cask or package containing more than
one (1) liter.
2. Any smaller fractional part shall be
exempt.
3. But any package of spirits, the total
contents of which are less than a proof
liter, shall be treated as one (1) liter.