SEC. 141. On distilled spirits, subject to the provisions of Section 133 of this Code, an excise tax shall be levied, assessed and collected based on the following schedules:

(A) Effective January 1, 2020

• An ad valorem tax equivalent to twenty-two percent (22%) of the net retail price (excluding the excise tax and the value-added tax) per proof; and

• In addition to the ad valorem tax herein imposed, a specific tax of Forty-two pesos (P42.00) per proof liter.

(B) Effective January 1, 2021

• An ad valorem equivalent to twenty-two percent (22%) of the net retail price (excluding the excise tax and the value-added tax) per proof; and

• In addition to the ad valorem tax herein imposed, the specific tax of Forty-seven pesos (P47.00) per proof liter.

(C) Effective January 1, 2022

• An ad valorem equivalent to twenty-two percent (22%) of the net retail price (excluding the excise tax and the value-added tax) per proof; and

• In addition to the ad valorem tax herein imposed, the specific tax of Fifty-two pesos (P52.00) per proof liter.

(D) Effective January 1, 2023

• An ad valorem equivalent to twenty-two percent (22%) of the net retail price (excluding the excise tax and the value-added tax) per proof; and

• In addition to the ad valorem tax herein imposed, the specific tax of Fifty-nine pesos (P59.00) per proof liter.

(E) Effective January 1, 2024

• An ad valorem equivalent to twenty-two percent (22%) of the net retail price (excluding the excise tax and the value-added tax) per proof; and

• In addition to the ad valorem tax herein imposed, the specific tax of Sixty-six pesos (P66.00) per proof liter.

Effective January 1,2026

• • • • Ad Valorem Tax 22% / net retail price

      • Specific Tax P74.16 per proof liter.

SEC. 142. Wines. - On wines, there shall be levied, assessed and collected effective on January 1, 2020, an excise tax equivalent to Fifty pesos (P50.00) per liter. The rate of tax imposed under this Section shall be increased by six percent (6%) every year thereafter, effective January 1, 2021, through revenue regulations issued by the Secretary of Finance. (P56.18)

• Sparkling Wines and Champagnes

  • NRP per 750ml of P500.00 or less ₱328.99 Gauge Liter   

  • NRP per 750ml of more than P500.00 ₱921.15 Gauge Liter 

• Still Wines and Carbonated Wines

  • 14% Alcohol Content or less ₱  39.48 Gauge Liter 

  • more than 14% AC but not more than 25% AC ₱  78.96 Gauge Liter 

• Fortified wines with more than 25% AC Taxed as Distilled 

SEC. 143. Fermented Liquors. - There shall be levied, assessed and collected an excise tax on beer, lager beer, ale, porter and other fermented liquors regardless if manufactured in factories or sold and brewed at micro-breweries or small establishments such as pubs and restaurants, except tuba, basi, tapuy and similar fermented liquors in accordance with the following schedule:

• Effective on January 1, 2022, the tax shall be Thirty-nine pesos (P39.00) per liter;

• Effective on January 1,2023, the tax shall be Forty-one pesos (P41.00) per liter; and

• Effective on January 1,2024, the tax shall be Forty-three pesos (P43.00) per liter.

The rates of tax imposed under this Section shall be increased by six percent (6%) every year thereafter effective January 1,2025,

a. NRP per Liter of P50.60 or below ₱  39.00 Gauge Liter 

b. NRP per Liter of more than P50.60 ₱  39.00 Gauge Liter 

c. Brewed and sold at microbreweries ₱  36.85 Gauge Liter 

SEC. 144. Tobacco Products, Heated Tobacco Products, and Vapor Products. -

• Tobacco Products. - xxx

• Heated Tobacco Products, - There shall be levied, assessed and collected on heated tobacco products an excise tax at the rate prescribed below:

• Effective on January 1, 2022, Thirty pesos (P30.00) per pack of twenty (20) units or packaging combinations of not more than twenty (20) units; 

• Effective on January 1,2023, Thirty-two pesos and fifty centavos (P32.50) per pack of twenty (20) unite or packaging combinations of not more than twenty (20) units.

The rates of tax imposed under this Subsection, shall be increased by five percent (5%) every year effective on January 1, 2024 

• Vapor Products. - There shall be levied, assessed and collected on vapor products an excise tax at the rates prescribed below:

• Nicotine Salt or Salt Nicotine. - There shall be levied, assessed and collected on any liquid substance, regardless of nicotine content, including nicotine-free liquids or any similar product, further classified as nicotine salt or salt nicotine, an excise tax based on the following schedules:

  • Effective on January 1,2022, Forty-seven pesos (P47.00) per- milliliter or a fraction thereof; and

  • Effective on January 1,2023, Fifty-two pesos (P52.00) per milliliter or a fraction thereof.

That the rates of tax imposed under this Subsection shall be increased by five percent (5%) every year effective on January 1, 2024

• Conventional 'Freebase' or 'Classic' Nicotine. - There shall be levied, assessed and collected on any liquid substance, regardless of nicotine content, including nicotine-free liquid or any similar product, further classified as conventional 'freebase' or 'classic' nicotine an excise tax based on the following schedules:

• Effective on. January 1, 2022, Fifty-five pesos (P55.00) per ten (10) milliliters or a fraction thereof; and

• Effective on January 1, 2023, Sixty pesos (P60.00) per ten (10) milliliters or a fraction thereof.

That the rates of tax imposed under this Subsection shall be increased by five percent (5%) every year effective January 1, 2024

• Tobacco twisted by hand (per kg) ₱ 2.50 Net Kg

• Tobacco prepared or partially prepared (per kg) ₱ 2.50 Net Kg

• Fine-cut shorts and refuse, scraps, etc., (per kg) ₱ 2.50 Net Kg

• Chewing Tobacco (per kg) ₱ 2.13 Net Kg 

• Cigars

• Ad Valorem Tax (AVT)-- based on of NRP     20% Net Retail 

• Specific Tax (ST)-- (per Piece)   ₱  7.10 Cigar (2022)

• Cigarettes packed by hand (per Pack) ₱  55.00 Pack 

• Cigarettes packed by machine (per Pack) ₱  55.00 Pack 

• Heated Tobacco Products ₱  30.00 Pack (20 Pieces)

SWEETENED BEVERAGES

• Using purely caloric sweetener, purely non-caloric or mixed (per Liter)

  • Sweetened Juice Drinks ₱ 6.00

  • Sweetened Tea ₱ 6.00

  • Carbonated Beverages ₱ 6.00

  • Flavored Water ₱ 6.00

  • Energy and Sports Drinks ₱ 6.00

  • Powdered Drinks not classified as Milk, Juice, Tea and Coffee ₱ 6.00

  • Cereal and Grain Beverages ₱ 6.00

  • Other Non-Alcoholic Beverages that contain added Sugar ₱ 6.00

• Using purely High Fructose Corn Syrup (per Liter)     ₱  12.00

• Using purely coconut sap sugar and purely Steviol Glycosides (per Liter) Exempt

PETROLEUM PRODUCTS

• Lubricating oils and greases, including basestock ₱  10.00 Liter / Kg 

• Processed gas (per Liter) ₱  10.00 Liter Volume Capacity 

• Waxes and petrolatum (per Kilogram) ₱ 10.00 Kilogram 

• Denatured alcohol, used for motive power (per Liter) ₱  10.00 Liter Volume Capacity 

• Naphtha, regular gasoline, pyrolysis gasoline ₱  10.00 Liter Volume Capacity 

• Naphtha used as raw material or replacement fuel ₱   -  Liter Volume Capacity 

• Leaded Premium gasoline (per Liter)

• Unleaded Premium gasoline (per Liter) ₱  10.00 Liter Volume Capacity 

• Aviation turbo jet fuel (per Liter) ₱    4.00 Liter Volume Capacity 

• Kerosene (per Liter) ₱    5.00 Liter Volume Capacity 

• Kerosene used as aviation fuel (per Liter) ₱    4.00 Liter Volume Capacity 

• Diesel fuel oil & similar fuel oils ₱    6.00 Liter Volume Capacity 

• Liquefied Petroleum Gas, not for motive power (per Liter) ₱    3.00 Liter Volume Capacity 

• Liquefied Petroleum Gas, used as raw material (per Kg) ₱ -  Liter Volume Capacity 

• Asphalt  (per Kilogram) ₱  10.00 Kilogram 

• Bunker fuel oil and similar fuel oils (per Liter) ₱    6.00 Liter Volume Capacity 

• Petroleum coke (per Metric Ton) ₱    6.00 Metric Ton

• Petroleum coke, used as feedstock (per Metric Ton) ₱   -  Metric Ton

AUTOMOBILES

Net manufacturer’s price/importer‘s selling price Traditional Hybrid

• Up to Six hundred thousand pesos (₱600,000) 4% 2% MSP/ISP

• Over Six hundred thousand pesos (₱600,000) to One million pesos (₱1,000,000) 10% 5% MSP/ISP

• Over One million pesos (₱1,000,000) to Four million pesos (₱4,000,000) 20% 10% MSP/ISP

• Over Four million pesos (₱4,000,000) 50% 25% MSP/ISP

• Hybrid vehicles / Pick Ups (purely electric - exempted) 

DEPRECIATION:

• No-Dollar Importations of Motor Vehicles: Rate of Duty - Automobiles

Automobile Year Model Multiplier   Automobiles for transport of 10 or more seaters   20% Ad Valorem

    1ST YEAR 100% 0.90       Automobiles for transport of 9 seaters below 30% Ad Valorem

    2ND YEAR 90% 0.80

    3RD YEAR 80% 0.70

    4TH YEAR 70% 0.60

    5TH YEAR 60% 0.50

    6TH YEAR 50% (MAXIMUM)

• For purposes of computing the duties due where either Methods 2, 3 and 6 are used to determine the value of the motor vehicle based on the Japanese or Red Book as the case may be the rate of depreciation shall computed using the straight line method at 10% for every year but not exceeding 90%. 

• For trucks and heavy equipment, the rate of depreciation shall follow the straight line method at 10% per year but in no case shall it exceed 90%. 

Current Year No Depreciation 

One-Year Old 10% 

Two-Year Old 20% 

Three-Year Old 30% 

Four-Year Old 40% 

Five-Year Old 50% 

Six Year Old 60% 

Seven Year Old 70% 

Eight Year Old 80% 

Nine Year Old and Older 90% 

(Note: Depreciation table used for Local Purchase Scheme)