Excise Tax (2)

Purpose

(1) to raise revenue (2) to curtail the consumption of certain commodities (3) to protect domestic industries

Imposed on:

(a) Alcohol Products (b) Tabacco Products (c) Petroleum Products (d) Miscellaneous Articles (e) Non-essential Services (f) Sweetened Beverages (g) Mineral Products

Where?

(i) authorized agent bank (ii) RCO (iii) city/municipal treasurer XPN: Secretary of Finance may prescribe

SPECIFIC TAX - excise tax imposed on goods or articles based on WEIGHT/VOLUME capacity or any other physical unit of measurement

(i) cigarettes packed (ii) petroleum products (iii) mineral products (iv) sweetened beverage

AD VALOREM TAX - excise tax imposed on goods or aticles based on the gross selling price or other specified VALUE of the goods

(i) cigars (ii) alcoholic products (iii) non-essential services (iv) automobiles

When? - before removal of domestic products from place of production

(i) non metallic - upon removal (ii) metallic - within 15d aft the end of calendar quarter *payment whether i/ii, before removal from customs

Gross Selling Price subj to Ad Valorem

(i) the price excluding VAT and tariff & customs duties if imported (ii) if the manufacturer also sells the goods at wholesome in another establishment of which he is the owner, the wholesalr price in the latter establishment shall be the GSP (iii) if price<cost&exp, GSP shall be equal to cost&exp PLUS a proportionate margin of profit not less than 10% of cost&exp

Manufacturer/Producer Sworn Statement

- file with CIR as often as may be required (i) goods/products with GSP/MV (ii) cost of manufacture (iii) expenses incurred/to be incurred until finally sold

Excise Tax

- in addition to VAT - deductible for income tax purposes - taxes on: (i) certain goods manufactured/produced in the Ph for domestic sale/consumption (ii) things imported (iii) certain services rendered in Ph

Credit for Excise Tax on Goods Actually Exported

- without returning to Ph - credited upon submission of proof of actual exportation and receipt of forex payment XPN : mineral products (bawal) XPN : coal and coke (pwede)

Excise Tax on Imported Products

Cigar, Cigarettes, Distilled Spirits, Fermented Liquors & Wines - subj to all apllicable taxes including excise tax - even when destined for duty free shops

Compliance Requirements WHO? - every person liable shall file a separate return for each place of production

Domestic Products (a) MANUFACTURER/PRODUCER of domestic products shall file the return and pax the excise tax BEFORE THE REMOVAL of domestic products from place of production (b) OWNER/PERSON HAVING POSSESSION of domestic products which were removed from place of production without payment of excise tax (c) FIRST BUYER/PURCHASER/TRANSFEREE FOR LOCAL SALE OR TRANSFER in case of indigenous petroleum, natural gas, or liquified natural gas Imported Products (a) IMPORTER shall file the return and pay tax BEFORE REMOVAL of imported goods from customgouse or customs custody (b) person who is found in POSSESSION of articles which are exempt from excise taxes other than those legally entitled to exemption