From: Manila Bulletin Publishing Corporation
BIR Issues Tax Rates For Various Brands Of ‘Sin’ Products
By JUN RAMIREZ
MANILA, Philippines — The Bureau of Internal Revenue (BIR) came out on Wednesday with an additional and detailed guideline implementing higher excise taxes (ad valorem and specific) on the so-called “sin” products.
Revenue Commissioner Kim S. Jacinto-Henares instructed all manufacturers and importers of alcohol and tobacco to get a copy of the 19-page Revenue Memorandum Circular No. 90-2012 which contained applicable tax rates for every brand of their products as prescribed under the mother Revenue Regulations No. 17-2012 issued last week.
It is available at the BIR website, www.bir.gov.ph.
The circular contained the names of the 629 brands of liquor and 267 cigarettes which are either imported or produced locally and are available in the local market.
For both fermented liquors (beer) and distilled spirits (whisky, brandy and rum) the tax is on per liter basis.
For instance, specific tax on the popular San Mig Light beer is around P7 per bottle, or P20.57 for every three bottles which is equivalent to one liter.
For cigarette, the collection of the specific tax is more simplier as the revenue regulations imposed only two schedules.
These are P12 for those retailed at P11.50 and below and P25 for higher amounts.
The tax rates for both liquor and cigarettes were based on a 2010 BIR price survey.
Meanwhile, Ms. Henares has reshufled six key field officials to continue strenghteing the tax collection program of the bureau.
Among those given new assignments were Gerry Florendo from chief of the excise division of the Large Taxpayers Service (LTS) to director of Revenue Region No. 5 based in Caloocan City, South Quezon City Revenue District Officer Clavelina Nacar to assistant revenue regional director of Southern Tagalog and Teresita Angeles, chief of staff of the Resource Management Service to chief of the LTS excise tax division.
Meanwhile, putting a stop to cigarette smuggling is on top of the 2013 agenda of the Bureau of Customs (BOC) following the implementation of the Sin Tax Reform law.
“My own target now is to do some apprehensions on cigarettes,” said Customs Commissioner Ruffy Biazon.
Biazon said the BOC will not only look at smuggling of cigarettes into the country but also the smuggling of cigarettes from the Philippines to other countries.
“Our problem actually is also the concerns of other countries. That is smuggling of cigarettes from the Philippines,” he said.
He said even after the imposition of higher taxes, local retail prices of cigarettes remain lower than in other countries, making them cheaper to buy here and then sell abroad and this offers an opportunity for smugglers to profit.
He said these cigarettes are smuggled in boats across the border of Mindanao particularly in the provinces of Zamboanga and Tawi-Tawi.
Biazon said the BOC has all the reasons not to lower its guard on cigarette smuggling.
“We aim to apprehend to gain the confidence of the government to address that,” he said. (With a report from Raymund F. Antonio)
