TAX ON ALCOHOL PRODUCTS.docx
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TAX ON ALCOHOL PRODUCTS: Alcohol products- refers to distilled spirits, wines and fermented liquor as generally classified under and provided for in Sec. 141, 142 and 143, respectively, of the Tax Code. Classification: 1. Wines- include all alcoholic beverages produced by fermentation without distillation, from the juice of any kind of fruit. * fermentation- process by which enzymatic changes are brought about. It covers a period of time enough to produce the desired result. 2. Sparkling wine- an effervescent table wine usually white but occasionally red in color, containing an average of 12% alcohol by volume which is carbonated by secondary fermentation. E.g. Champagne. 3. Still wine- not effervescent or not carbonated. 4. Fortified wines- natural wines to which distilled spirits are added to increase their alcoholic strength. * spirits or distilled spirits- the substance known as ethyl alcohol, ethanol, or spirits of wine, including all dilutions, purifications and mixtures thereof. Its alcoholic content is higher than beer or wine. E.g. Whiskey, brandy, rum, gin, and vodka, and other similar products or mixtures. PERTINENT PROVISIONS OF THE TAX CODE: Among others: 1. After the effectivity of R.A. 9334, it shall be taxed under the proper classification of variant of existing brands and variants of new brands (brand registered after the effectivity of R.A 8240) based
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Transcript of TAX ON ALCOHOL PRODUCTS.docx
TAX ON ALCOHOL PRODUCTS:Alcohol products- refers to distilled spirits, wies !d fer"eted li#uor !s$eer!ll% cl!ssi&ed uder !d pro'ided for i Sec( )*), )*+ !d )*,, respecti'el%, of the T!- Code(Cl!ssi&c!tio:)( .ies- iclude !ll !lcoholic /e'er!$es produced /% fer"et!tio without distill!tio, fro" the 0uice of !% 1id of fruit(2 fer"et!tio- process /% which e3%"!tic ch!$es !re /rou$ht !/out( 4t co'ers ! period of ti"e eou$h to produce the desired result(+( Sp!r1li$ wie- ! e5er'escet t!/le wie usu!ll% white /ut occ!sio!ll% red i color, cot!ii$ ! !'er!$e of )+6 !lcohol /% 'olu"e which is c!r/o!ted /% secod!r% fer"et!tio( 7($( Ch!"p!$e(,( Still wie- ot e5er'escet or ot c!r/o!ted(*( 8orti&ed wies- !tur!l wies to which distilled spirits !re !dded to icre!se their !lcoholic stre$th(2 spirits or distilled spirits- the su/st!ce 1ow !s eth%l !lcohol, eth!ol, or spirits of wie, icludi$ !ll dilutios, puri&c!tios !d "i-tures thereof( 4ts !lcoholic cotet is hi$her th! /eer or wie( 7($( .his1e%, /r!d%, ru", $i, !d 'od1!, !d other si"il!r products or "i-tures(P7RT4N7NT PRO94S4ONS O8 TH7 TAX COD7:A"o$ others:)( After the e5ecti'it% of R(A( :,,*, it sh!ll /e t!-ed uder the proper cl!ssi&c!tio of '!ri!t of e-isti$ /r!ds !d '!ri!ts of ew /r!ds ;/r!d re$istered !fter the e5ecti'it% of R(A /!sed o their su$$ested et ret!il price( Such cl!ssi&c!tio sh!ll ot, i !% c!se, /e lower th! the hi$hest cl!ssi&c!tio of !% '!ri!t of th!t /r!d( +( The r!tes of t!- i"posed sh!ll /e icre!sed /% sh!ll/e &ed tre/le the !"out of de&ciec% t!-es, surch!r$es !d iterest which "!% /e !ssessed pursu!t to the s!id sectios(@( A% perso li!/le for !% !cts or o"issios uder s!id sectios sh!ll /e cri"i!ll%li!/le uder Sec( +C* of the T!- Code(Persos who willfull% !ids or !/ets i its co""issio sh!ll /e li!/le i the s!"e "!er !s the pricip!l( A o5eder who is ot ! citi3e of the Philippies, sh!ll /e deported i""edi!tel% !fter ser'i$ setece, without further proceedi$s for its deport!tio(RAT7S AND FAS7S O8 TH7 7XC4S7 TAX ON 87RA7NT7D L4GUORS:O /eer, l!$er /eer, !le, porter !d other fer"eted li#uors e-cept tu/!, /!si, t!pu%!d si"il!r do"estic fer"eted li#uors, there sh!ll /e le'ied, !ssessed !d collected e-cise t!-, i !ccord!ce with the followi$ schedule:)(> P perliter of 'olu"e c!p!cit% is less th! P)*(C=H?!( ), +==@ - P P)+(,= per liter - if the et ret!il price;e-cludi$ the e-cise t!- !d the 9AT > per liter of 'olu"e c!p!cit% is P)*(C= up to P++(==H?!( ), +==@ - P),( +
