Excise tax on distilled spirits, wines and fermented liquors (Revenue regulation No.

17-2012, Section 141

of the NIRC and RA 10963, TRAIN Law and RA 11467)

Ad Valorem Tax-an excise tax assessed and levied on locally produced or imported distilled spirits based
upon the net retail price of the distilled spirits (whisky, brandy, rum, vodka, gin and other similar
products or mixtures).

Specific Tax - an excise tax assessed and levied on locally produced or imported distilled spirits based
upon the proof spirits or alcohol contents of the distilled spirits (whisky, brandy, rum, vodka, gin, tequila
and other similar products or mixtures).

Net Retail Price shall mean the price (exclusive of VAT and excise tax) at which the distilled spirits is sold
on retail in at least 5 major supermarkets in Metro Manila or 5 major supermarkets in a region.

Suggested Net Retail Price means the NRP at which locally manufactured or imported alcohol is
intended to be sold by the manufacturer or importer at retail in major supermarkets or retail outlets in
the prescribed minimum number of Revenue Regions for brands with national or regional markets.

Compound Liquor (cocktails/mixed) shall refer to intoxicating beverages whatever concocted by or

resulting from mixture of or addition to distilled spirits, either before or after rectification, of any
coloring matter, flavoring extract or essence or other kind of wine, liquor or other ingredient.

Proof Spirits (AC) means a liquor containing ½ of its volume of alcohol of a specific gravity of .7939 at 15
degrees centigrade. A proof liter means a liter of proof spirits.

Conversion

centimeter/milliliter to liter divide by 1,000 or multiply by .001

centiliter to liter divide by 100 or multiply by .01
deciliter to liter divide by 10 or multiply by .1

Gauge Liter (GL) means the actual volume of the alcohol measured.

If liquor is given in bottles,

GL = no. of bottles x no. liter (1,000 ml or cc) per bottle
If liquor is given in cases,
GL = no. of cases x no. bottles/case x no. liter/bottle (1,000 ml or cc) per bottle
If liquor is given in drums,
GL = no. liter (1,000 ml or cc) x no. liter/drum

Proof Liter (PL) refers to a liter of proof spirits. Degree of strength in % Pf of 1 liter of alcohol product.

PL = GL x % PF
PL = GL x PS or AC x 2 divide by 100
Rate of Excise Tax 2020 under the TRAIN Law (RA 10963) and RA 11467

Specific Tax PHP47.00 (RA 11467) per Proof Liter

Ad Valorem Tax 22% (RA 11467) based on the Net Retail Price

1. Liquors Inc., Philippines will cause the release of 4,500 bottles of XXX Whisky from its plant. At
755ml/bottle, 41% alcohol content (AC) and NRP of PHP73.00, compute the excise tax.

2. Limtuaco Lasing Inc., Philippines will cause the release of 70 cases of Rexon Brandy from its
warehouse. At 550cc/bottle, 38% alcohol content (AC) and NRP of PHP73.00 and each case
contains 12 bottles, compute the excise tax.

3. Tagay2 Inc., Philippines will cause the release of 140 boxes of Tanduay Rum from the Bureau. At
550CL/bottle, 40.50% alcohol content (AC) and NRP of PHP82.00 and each box contains half
dozen bottles, compute the excise tax.