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EXECUTIVE ORDERS
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EXECUTIVE ORDER NO. 863 - REVISING
THE RETAIL PRICES AND SPECIFIC TAXES ON LOCAL AND IMPORTED CIGARETTES
WHEREAS,
the increasing cost of production of local cigarettes has rendered the
existing statutory maximum retail prices unrealistic, leaving the
manufacturers insufficient leeway for any price adjustments;
WHEREAS, it becomes imperative to revise the present statutory maximum
retail prices and provide new specific tax rates on local and imported
cigarettes to maintain the economic equilibrium for the manufacturers
and at the same time generate additional revenue for the government.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
pursuant to the powers vested in me under Sec. 290-B of the National
Internal Revenue Code, as amended, do hereby direct and order that:
Section 1.
“(b)
“(1)
“(2)
“(3)
“(4)
“(5)
“(6)
“(7)
“(8)
“(9)
“(10)
“(11)
“(12)
Nothing
under the foregoing subparagraph (b) shall be deemed to allow a
downward reclassification for tax purposes of any existing brand of
cigarettes whenever there is a change in the tax rates or retail price
ceilings thereof.
Cigarettes subject to tax at
lower rates before the effectivity of the
new rates herein prescribed shall automatically be subject to the
corresponding higher rates and there is nothing under this subsection
(b) which allows any downward reclassification of tax rates for
existing brands of cigarettes duly registered at the time the herein
rates become effective.
Duly registered and/or existing
brands of cigarettes packed in twenties
at the time of the new rates herein prescribed shall not be allowed to
be packed in thirties.
The maximum price at which the
various classes of cigars are sold at
wholesale in the factory or in the establishment of the importer to the
public shall determine the rate of the tax applicable to such cigars;
and if the manufacturer or importer also sells, or allows to be sold,
his cigars at wholesale in another establishment of which he is the
owner or in the profits of which he has an interest, the maximum sale
price in such establishment shall determine the rate of the tax
applicable to the cigars therein sold: Provided, however, That when
such maximum wholesale price is less than the cost of manufacture or
importation plus all expenses incurred until the cigars are finally
sold by the manufacturer or importer, such cost plus expenses shall
determine the amount of tax to be applied.
“Every
manufacturer or importer of cigars shall file with the Commissioner on
the date or dates designated by the latter, a sworn statement showing
the maximum wholesale price of cigars, together with the cost of
manufacture or importation plus expenses incurred or to be incurred
until the cigars are finally sold and it shall be unlawful to sell the
cigars at wholesale at a price in excess of the one specified in the
statement required by this Title without previous written notice to
said Commission. In the case of imported cigars, the sworn statement
required herein shall be accompanied by verified sales invoices of the
manufacturers of the cigars as well as the consular invoice issued by a
Philippine Consul, should one be available at the place of origin or
shipment.
“Every manufacturer or importer
of cigarettes shall file with the Commissioner, on the date or dates
designated by the latter, and as often as may be required, a sworn
statement showing, among other information, the brand or brands of
cigarettes manufactured or imported; the approved maximum retail prices
per pack of said cigarettes. In the case of imported cigarettes, the
sworn statement required herein shall, in addition to the above
information, be accompanied by a verified commercial invoice of the
manufacturer of the cigarettes as well as the consular invoice issued
by a Philippine Consul, if any, containing the information that
Philippine Internal Revenue strip stamps have been affixed to each and
every pack of cigarettes and that such pack bears the inscription “for
export to the Philippines.”
“If the government of a foreign
country permits the revenue stamps of such country to be affixed in the
Philippines to tobacco (including cigars) or snuff manufactured in the
Philippines and imported into such foreign country, internal revenue
stamps of the Philippines may be affixed to tobacco (including cigars)
or snuff manufactured in such foreign country to be imported into the
Philippines from such foreign country, under such rules and regulations
as the Commissioner of Internal Revenue with the approval of the
Ministry of Finance may prescribe.
“Except those used as samples,
all packs of locally manufactured cigarettes shall, upon the
effectivity of the new rates of tax herein prescribed, bear thereon in
print the maximum retail prices at which the said cigarettes are sold.
No cigarettes shall be allowed to be removed from any factory unless
this requirement has been complied with.
“Any manufacturer who in
violation of this section, knowingly, misdeclares or misrepresents in
his sworn statement herein required any pertinent data or information,
including the approved maximum retail prices of his locally
manufactured or imported cigarettes shall upon discovery be penalized
by a summary cancellation or withdrawal of his permit to engage in
business as a manufacturer or importer of cigarettes. If the violator
is an alien, he shall be liable for
deportation.”
This order shall take effect January 1, 1983.
Done in the City of Manila, this 26th day of December, in the year of Our Lord, nineteen hundred and eighty-two.
CIGARETTES
A. LOCAL
I.
II.
B. IMPORTED
Regardless of Retail
Price or Contents Per Pack
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