Multiple Choice 2

1. Who is the taxpayer on locally produced excisable goods? Producer

2. Which statement is correct? Excise tax normally don’t have a deadline of
payment
3. Which is not subject to excise tax? Prostitution
4. Which of the following is not considered a taxable sin product? Marijuana
5. Statement 1: Excise tax rates are relatively more burdensome compared to other
business taxes. Statement 2: Excise tax rates covers a small range products or
services.
Which is true? Both statements are true.
6. Statement 1: Excise tax, customs duties and the VAT on importation is similarly
collectible at the point of importation. Statement 2: Excise tax and the VAT on
importation are similarly imposed upon landed costs.
Which is false? Neither statement
7. Statement 1: The regulatory aspect of specific taxes on certain sin products will
best be preserved when their tax rates adjust for inflation.
Statement 2: There is no need to adjust ad valorem taxes since they ride with
inflation
Which is true? Both statement
8. Which is subject to purely specific tax? Cigarettes
9. which statement is false? All excisable automobiles are subject to specific
tax.
10. Which of the following mineral products is subject to specific tax? Coal and
coke
11. HKG, Inc. produced and withdrawn 1,000,000 units of excisable goods X which is
subject to P1/unit excise tax. HKG, Inc. uses goods X to manufacture Product Y
which is sold domestically and abroad. 50,000 units of Product Y was produced out
of which 30,000 units were exported.
Which is incorrect? Excise tax is payable only on the 400,000 units of goods
X
12. No excise tax credit or refund is allowed to the export of which of the following
commodities? Mineral products
13. Which of the following requires a payment of bond? All of these (removal of
wines and distilled spirits for tobacco leaf treatment, removal of spirits for
rectification, removal of fermented liquor to bonded warehouses)

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 14. The excise tax on excisable goods exported is claimable by refund or tax credit.
Which is an exception to this rule? Mineral products
15. Who is ultimately liable for the rectification of spirits? Rectifier
16. Which is subject to payment of excise taxes? Removal of bunker fuel for the
production of excisable products
17. Who will pay excise tax? Hospitals performing cosmetic surgery
18. What is the threshold alcohol content that when exceeded shall reclassify wines
into distilled spirits? 25%
19. The excise tax on locally produced or manufactured products that are exported
shall be claimed by the producer as tax refund or tax credit
20. The tax refund or tax credit on exported products shall not be allowed on All
mineral products
21. A manufactured cigarette and sold the same to B. B exported the goods abroad
to a foreign retailer, C. Who is entitled to claim refund for the excise None of them
22. which is not a sin product? Jewelry
23. Which of the following product is subject to both ad valorem and specific tax?
Distilled spirits and cigars and cigarettes
24. Which of the following agricultural products is subject to excise tax? Tobacco
rolls
25. The excise tax on minerals does not apply to? Natural gas
26. Indigenous petroleum does not include Bitumen or crude asphalt
27. The term “quarry resources does not include Metallic rocks or mineralized
rocks
28. These refers to things produced and prepared in marketable state by simple
treatment processes of washing or drying without undergoing any chemical change
or process or manufacturing by the lessee, concessionaire or owner Quarry
resources
29. which statement is false?
Manufacturer’s and importers are subject to ad valorem tax on their net selling
price, net of excise tax and ad valorem tax Buses, trucks, cargo vans and
jeepneys shall be considered as automobiles for purposes of the excise
tax.
30. Which is false? The 20% tax on jewelry applies to genuine precious
metals jewelry
31. Which is subject to the 20% jewelry tax? Pearls

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 32. Which of the following services is subject to excise tax? Invasive cosmetic
procedures and surgeries
33. Petroleum products sold to the following shall be subject to excise tax.
Government agencies and GOCCS
34. Mosquada Company has three cigar processing plants located in Bauang, La
Union, Baguio City and Dagupan City, Pangasinan. Mosquada’s head office is in
Baguio City. Which is true with respect to filing of excise tax? One return shall be
filed for each factory or place of production.

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