MEMBERS:

Bastats, Anelen
Cabugwas, Judilyn
Indino, Klaribel
Mendez, Mary Jean
Excise Taxes-is a tax on the production, sale or consumption of a commodity in a country.
-Like VAT
-Indirect tax
Classifications of Excise tax
1. Specific
2. Ad-valorem
*Purpose of Excise Tax
1. To curtail consumption
2. To protect domestic industries
3. To distribute the tax burden
4. To raise revenue
*Good Subject to Excise Tax
1. Alcohol products
-Alcohol products
-Distilled spirits
-Wines
-Fermented liquors
2. Tobacco products
-Cigars
-Cigarettes
3. Petroleum products
4. On miscellaneous imported articles & non-essential goods
5. On mineral products
ALCOHOL PRODUCTS
*Distilled Spirits
-refer to the substance known as ethyl alcohol, ethanol or spirits of wine.
-process produced shall include whisky, brandy, rum, gin, and vodka.

1. P11.65 excise tax per proof liter produced from the sap of nipa, coconut, cassava, camote, buri palm, or
from juice or syrup of sugar cane.
2. The excise tax shall be in accordance with the net retail price per bottle of 750mn. (Excluding the
excise tax & VAT) as follow:

Retail price

Excise Tax

Less than 250

P126 per proof liter

P250 to P675

P225 per proof liter

More than P675

P504 per proof liter

*Proof Spirits -liquors containing of its volume alcohol

-specific gravity of 0.7939 at 15`C
Proof liter- a liter of proof spirits
Illustration:
Grace Ann Subalas productions for a particular period are as follows:
a. Product A, produced from nipa=100 cases X 12 bottles of P750ml, 80 proof. Current retail price,
exclusive of VAT and excise tax is P100 per liter
Computation:
Product A
Proof liters (100x12x750/1,000)
Excise tax x (900xP11.65/proof liter)
b. Product B, produced from what = 100 cases x 6 bottles of 1. Liters, 90 proof, current retail price,
exclusive of VAT and excise tax is P900 per 1.5 liter
Product B
Proof Liters (100x6x1.5)900 proof liters
Retail price (750mlml/P450)1,500ml, 750ml
Excise Tax (900xP252] proof liters) P226,800
900 proof liters P10,485

Wines- are alcoholic beverages produced by fermentation without distillation from the juice of any kind
of fruit.
Retail Price/Liter ( Exclusive of VAT and Excise Tax)

Tax Liter

1. Sparkling wine/champagne regardless of proof liter

-P500 and less
-More than P500

P145.60
P436.80

2. Still wine containing 14% alcohol or less

3. Still wine containing more than 14% alcohol but not
more than 25% alcohol by volume
4. Fortified wines containing more than 25%
of alcohol by volume.

P17.47
P34.94

Illustration:
The production of Gin Compay for the period are as follow.
a. Sparkling wine, 100 cases x 12 bottles of one liter, 20 proof, with retail price of P600 per liter
exclusive of VAT and excise tax.
b. Still wine, 100 cases x 12 bottles of 750 ml. 15 proof, with retail price P400 per liter, eclusive of
VAT and excise tax.
c. Fortified wine, 10 cases x12 bottles of 750 ml. 30 proof, with retail price of P300 per liter,
exclusive of VAT and excise tax.
Fermented Liquor
Fermented Liquor refers to alcoholic beverages produced by fermentation without distillation of
grains or malt, which include beer, lager, ale porter and other similar products but excluding tuba,
tapoy and other similar domestic fermented liquor.
Tax Schedule
Retail Price Per Liter
(Exclusive of VAT/Excise Tax)
Lees than P14.50
P14.50 up to P22.00
More than P22.00

Illustration:
The product of Sean Brewery for the period is as follows:

EXCISE TAX
PER LITER
P

8.27
12.30
16.33

a. 100 cases of Regular Beer x24 bottles of 350 ml, retail price P15 per bottle inclusive of P0.90
VAT and P4.25 excise tax.
b. 100 cases of Lager x 24 bottles of 350 ml, retail price P10 per bottle inclusive of P0.50 VAT and
P2.15 excise tax.