SELF-PACED LEARNING MODULE

COLLEGE DEPARTMENT

MODULE 13
Subject:

BUSINESS TAX

AISAT COLLEGE – DASMARIÑAS, INC.

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 Unit Business Taxes
Module EXCISE TAXES – Part 2
AE25-BT BUSINESS TAXES Units: 3hrs Page |2

INFORMATION SHEET FN-12.12.1

“EXCISE TAX”

ALCOHOL PRODUCTS ( Sec. 141,NIRC, Sec. 1R.A. 9334)

SEC. 141. Distilled Spirits. - [40] On distilled spirits, subject to the provisions of Section 133 of this Code, an
excise tax shall be levied, assessed and collected based on the following schedules: 
(A) Effective January 1, 2020 
(1) An ad valorem tax equivalent to twenty-two percent (22%) of the net retail price (excluding the excise tax
and the value-added tax) per proof; and 
(2) In addition to the ad valorem tax herein imposed, a specific tax of Forty-two pesos (P42.00) per proof
liter. 
(B) Effective January 1, 2021 
(1) An ad valorem equivalent to twenty-two percent (22%) of the net retail price (excluding the excise tax and
the value-added tax) per proof; and 
(2) In addition to the ad valorem tax herein imposed, the specific tax of Forty-seven pesos (P47.00) per proof
liter. 

BIR RECORDS

Alcohol Products
2018 2019 2020 2021
1. AD VALOREM TAX - 20% 20% 22% 22%

2. SPECIFIC TAX - 22.49 23.38 42.00 (12%) 47.00

Example: Grace Ann Subala’s productions for a particular period are as follows:

Product A , produced from nipa = 100 cases x 12 bottles of 750 ml,80 proof. Current retail price,
exclusive of VAT and excise tax is 100 liter.
Product B, produced from wheat = 100 cases x 6 bottles of 1.5 liters, 90 proof, current retail price,
exclusive of VAT and excise tax, is P900 per 1.5 liter.

The computation of excise tax is determined as follows:

Product A
Proof liters (100 x 12 x 750/1000 900 proof liters
Excise Tax ( 900 x 11.65/proof liter P 10,485
Product B: ( old price of excise tax)
Proof liters (100 x 6 x 1.5) 900 proof liters
Retail Price (P900 x (750ml/1,500 ml) P450/750 ml
Excise Tax (900 x P252 / proof liters) P 226,800

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

FINAL MODULE 13th
PERIOD 13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Business Taxes
Module EXCISE TAXES – Part 2
AE25-BT BUSINESS TAXES Units: 3hrs Page |3

Note: the retail price of P450 per 750 ml is within the bracket of P250 to P675 /750 ml that is an
equivalent excise tax of P252 per proof liter (old price)

Computation: Under New Price of Excise Tax

Product A
Proof liters (100 x 12 x 750/1000 900 proof liters
Excise Tax ( 900 x 41.06/proof liter P 36,954
Product B:
Proof liters (100 x 6 x 1.5) 900 proof liters
Retail Price (P900 x (750ml/1,500 ml) P450/750 ml
Excise Tax (900 x P342.15 / proof liters) P 307.935

B. Wines

2018 2019 2020 2021

1. P500 less 304.17 316.34 328.99 342.15

More than 500 851.66 885.73 921.16 958.01

2.14% alcohol 36.50 37.96 39.49 41.06

3. 25% alcohol 73.01 75.93 78.97 82.13 alcohol

C. Fermented liquor ( Sec. 143,NIRC as amended, R.A. 9334)

Refers to alcoholic beverages produced by fermentation without distillation of grains or malt, which
include beer, lager, ale, and other similar products but not excluding tuba, basi, tapoy and other similar
domestic fermented liquor.

2018 2019 2020 2021

1 P50.60 and below 24.44 25.41 26.42 27.47

More than P50.60 24.44 25.41 26.42 27.47

Example:

100 cases of Regular Beer x 24 bottles of 350 ml

Computation: Regular Beer ( 100 x 24 x 350ml/1,000) x P27.47

= 2400 x .35 x27.47 (350/1000 = .35)
= 23,074.80

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

FINAL MODULE 13th
PERIOD 13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Business Taxes
Module EXCISE TAXES – Part 2
AE25-BT BUSINESS TAXES Units: 3hrs Page |4

TOBACCO PRODUCTS
2018 2019 2020
2021

2.13 2.21 2.29 2.38

2.13 2.21 2.29 2.38

2.13 2.21 2.29 2.38

1.82 1.89 1.96 2.03

6.08 6.32 6.57 6.83

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

FINAL MODULE 13th
PERIOD 13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Business Taxes
Module EXCISE TAXES – Part 2
AE25-BT BUSINESS TAXES Units: 3hrs Page |5

Example:

In 2021, Lucky Tobacco Manufacturing produced 100 cigarettes cases, 50 boxes containing 10 packs per
box. Exclusive of VAT and excise tax

The computation of excise tax would be:

Excise tax per pack P40.00 ( tax rates under RA10963 ( Train Law)
Total Number of packs produced
( 100 x 50 boxes x 10 packs per box) 50,000 packs
P 2,000,000

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

FINAL MODULE 13th
PERIOD 13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Business Taxes
Module EXCISE TAXES – Part 2
AE25-BT BUSINESS TAXES Units: 3hrs Page |6

PETROLEUM PRODUCTS

Example:

Marjorie Sison imported 14,000 liters of Banker Oil to be sold in the Philippines. Out of this product, she
produced 1,000 liters of grease and 4,000 liters of lubricating oil. How much would be the excise tax of
Sison for the period?

The excise tax of Sison for the period would be:

Excise tax on:”

Grease ( 1,000 liters x P10.00 ) P 10,000
Lubricating Oil ( 4,000 liters x P10.00) 40,000
Excise Tax P 50,000

Reference Book:
A study on Business Taxes and Transfer Taxes
under the Train Law
Virgilio D. Reyes
2018 Edition

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

FINAL MODULE 13th
PERIOD 13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Business Taxes
Module EXCISE TAXES – Part 2
AE25-BT BUSINESS TAXES Units: 3hrs Page |7

SELF-CHECK QUESTIONS FN-13.13.1.

Directions: Compute the excise tax of 10 units of Trooper

MISCELLANEOUS ARTICLES

AUTOMOBILES

Isuzu Philippines imported 10 units of Trooper with an importer’s selling price ( excluding excise tax)
and VAT ) of P 1,400,000 per Trooper. How much is the total excise tax?

The excise tax would be:

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

FINAL MODULE 13th
PERIOD 13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Business Taxes
Module EXCISE TAXES – Part 2
AE25-BT BUSINESS TAXES Units: 3hrs Page |8

STUDENT NAME: _____________________________________ SECTION: ___________

WRITTEN WORK FN-13.13.1

Written Work Title : EXCISE TAX COMPUTATION ON AUTOMOBILES
Written Task Objective : ▪ After completing this written work, you were being knowledgeable on how
to analyze and prepare simple financial statements.

Solve the excise tax of 10 units of trooper

AUTOMOBILES

Isuzu Philippines imported 10 units of Trooper with an importer’s selling price ( excluding excise tax)
and VAT ) of P 1,400,000 per Trooper. How much is the total excise tax?

The excise tax would be:

Note: Use extra sheet of paper for your answer.

Write legibly your answer. Avoid erasure.
Assessment Method : Written Work Criteria Checklist
SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:
FINAL MODULE 13th
PERIOD 13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Business Taxes
Module EXCISE TAXES – Part 2
AE25-BT BUSINESS TAXES Units: 3hrs Page |9

STUDENT NAME: _____________________________________ SECTION: ___________

WRITTEN OUTPUT CRITERIA CHECKLIST FN-13.13.1

Did I … CRITERIA SCORING
1 2 3 4 5
1. Logic and key points. All ideas are logically presented.
2. Content. Content of the essay flows and is passionate.
3. Cleanliness. Very clean and well presented.
4. Spelling and Grammar. No error in spelling and grammar.
5. Word usage. Word choice and usage are professionals.

GRADES

Teacher’s Remarks □ Quiz □ Recitation □ Project

5 - Excellently Written
4 - Very Satisfactory Written
3 - Satisfactory Written
2 - Fairly Written
1 - Poorly Written

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

FINAL MODULE 13th
PERIOD 13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director