BIR issues implementing rules on sin tax

MANILA, Philippines - The Bureau of Internal Revenue (BIR) issued yesterday the implementing rules and regulations (IRR) that would pave the way for the effectivity of Republic Act 10351 or An Act Restructuring the Excise Tax on Alcohol and Tobacco.

BIR Revenue Regulation 17-2012 dated Dec. 21, 2012, prescribes higher tax rates on tobacco and alcohol products.

For distilled spirits, the excise tax rate, based on the net retail price per proof, is 15 percent from Jan. 1, 2013 until Jan. 1, 2014. The rate will increase to 20 percent effective January 2015 onwards.

The excise tax on fermented liquor including beer is P15 per liter for products whose net retail price per liter of volume capacity is P50.60 or less effective Jan. 1, 2013.

This will go up to P17 per liter in 2014; P19 per liter in 2015; P21 per liter in 2016 and P23.50 per liter in 2017.

For cigarettes packed by machine and with a net retail price per pack of P11.50 and below, the excise tax rate is P12 per pack effective Jan. 1, 2013.

The rate will increase to P17 per pack in 2014, P21 per pack in 2015, P25 per pack in 2016 and P30 per pack in 2017.