EXECUTIVE ORDER NO. 22
EXECUTIVE ORDER NO. 22 - FURTHER
AMENDING CERTAIN PROVISIONS OF THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED
WHEREAS, there is an urgent need to
rationalize the imposition of excise taxes;
WHEREAS, there is also a need to simplify the methods of computation
and collection thereof;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Republic of the
Philippines, do hereby order:
Section 1. Section 109 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
“Sec.
109. Articles subject to excise taxes. — Excise taxes
apply to articles manufactured or produced in the Philippines for
domestic sale or consumption of for any other disposition and to things
imported. In case of importations, excise taxes shall be in addition to
the customs duties, if any.
For purposes of this Title,
excise herein imposed and based on weight or volume capacity or any
other physical unit of measurement shall be referred to as “specific
tax” and an excise tax herein imposed and based on selling price or
other specified value of the article shall be referred to as “ad
valorem tax”.
Sec. 2. Section 110 of the National Internal
Revenue Code, as amended, is hereby further amended by adding the
following paragraph:
“(d)
Credit for excise tax on articles actually exported. — When articles
locally produced or manufactured are removed and actually exported
without returning to the Philippines, whether so exported in their
original state or as ingredients or parts of any manufactured articles
or products, any excise tax paid thereon shall be credited or refunded
upon submission of the proof of actual exportation and upon receipt of
the corresponding foreign exchange.”
Sec. 3. Section 117 of the National Internal
Revenue Code is hereby amended to read as follows:
“Sec.
117. Removal of spirits under bond. — Spirits
requiring rectification may be removed from the place of production to
some other establishment for the purpose of rectification without the
prepayment of the excise tax: Provided, the distiller removing such
spirits and the rectifier receiving them shall file with the
Commissioner their joint bond conditioned upon the payment by the
rectifier of the excise tax due on the finished product: Provided,
further, that in cases where alcohol has already been rectified either
by original and continuous distillation or by redistillation is further
re-rectified, no loss for rectification and handling shall be allowed
and the rectifier thereof shall pay the specific tax due on such
losses.”
Sec. 4. Section 124 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
“Sec.
124. Ad Valorem tax on fermented liquors. — There
shall be levied, assessed and collected an ad valorem tax equivalent to
fifty (50%) percent of the brewer’s wholesale selling price, excluding
the ad valorem tax imposed under this Section , on beer, lager beer,
ale, porter and other fermented liquors except tuba, basi, tapuy and
similar domestic fermented liquors, but in no case shall the said ad
valorem tax be less than P1.00 per regular 320 cc. bottle.”
Sec. 5. Section 126 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
“Sec.
126. Cigars and Cigarettes. — (a) Cigars. — There
shall be levied, assessed and collected and ad valorem tax of fifteen
(15%) percent of the manufacturer’s or importer’s registered wholesale
price including the ad valorem tax imposed under this Section on all
cigars manufactured in or imported into the Philippines.
“(b)
Cigarettes packed in thirties. — There shall be levied, assessed and
collected an ad valorem tax of twenty (20%) percent of the
manufacturer’s registered wholesale price including the ad valorem tax
imposed under this Section on all cigarettes packed on thirties:
Provided, however, that the rate prescribed in this paragraph shall be
increased to twenty five (25%) percent beginning July 1, 1987.
“(c)
Cigarettes packed in twenties. — There shall be levied, assessed and
collected an ad valorem tax at the rates prescribed below based on the
manufacturer’s registered wholesale price, including the ad valorem tax
herein imposed on all cigarettes packed in twenties:
(1)
On locally manufactured cigarettes bearing a foreign brand, fifty (50%)
percent beginning July 1, 1986 and sixty (60%) percent beginning
January 1, 1987: Provided, that this rate shall apply regardless of
whether or not the right to use or title to the foreign brand was sold
or transferred by its owner to the local manufacturer. Whenever it has
to be determined whether or not a cigarette is a foreign brand, the
listing of brands manufactured in foreign countries appearing in the
current World Tobacco Directory shall govern.
(2) On other
locally manufactured cigarettes forty (40%) percent beginning July 1,
1986 and fifty (50%) percent beginning January 1, 1987. Duly registered
or existing brands of cigarettes packed in twenties shall not be
allowed to be packed in thirties. Where the existing registered
wholesale price, including tax, of cigarettes packed in 20s does not
exceed P3.60 per pack, the rate for the cigarettes packed in 30s shall
apply.
“(d)
Imported cigarettes. — If the cigarettes are of foreign manufacture,
regardless of the retail price and collected an ad valorem tax of
seventy-five (75%) percent of the importer’s wholesale price including
the tax imposed in this paragraph.
“(e) Printing
of rates of tax. — There shall be printed on all packs of locally
manufactured cigarettes the amount of the ad valorem tax per pack,
except those to be used as samples. No cigarettes shall be allowed to
be removed from any factory unless this requirement has been complied
with.”
Sec. 6. All orders, issuances, rules and
regulations or any part thereof which are inconsistent with the
provisions of this Executive Order are hereby repealed or modified
accordingly.
Sec. 7. This Executive Order shall take effect on
July 1, 1986.
Done in the City of Manila,
this 20th day of June, in the year of Our Lord, nineteen hundred and
eighty-six.