Inclusion (TRAIN) – Excise Taxes Tobacco RA 10351/ TRAIN RR 17-2012 CIGARETTES, 2017 January 1, July 1, 2018 January 1, January 1, January per pack 2018 until until 2020 until 2022 until 1, 2024 June 30, December December December Onwards 2018 31, 2019 31, 2021 31, 2023 Cigarettes P 30.00 P 32.50 P 35.00 P 37.50 P40.00 Effectivity 1/1/2024, packed by the hand specific P 35.00 P 37.50 P40.00 tax rate Cigarettes P 30.00 P 32.50 shall be packed by increased machine by 4% every year thereafter
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 Petroleum PRODUCTS RA TRAIN 10351/ RR 17- January January January 2012 1, 2018 1, 2019 1, 2020 (a) Lubricating oils and greases, including but not P 4.50 limited to basestock for lube oils and greases, high vacuum distillates, aromatic extracts and other similar preparations, and additives for lubricating oils and greases, whether such additives are petroleum based or not, per liter and kilogram respectively, of volume capacity P 8.00 P 9.00 P 10.00 or weight. (a.1) Locally produced or imported oils previously P 4.50 taxed but are subsequently reprocessed, refined or recycled, per liter and kilogram of volume capacity or weight. TRAIN Briefing – Excise Taxes VER 1.0 – January 2018 Petroleum PRODUCTS RA TRAIN 10351/ RR 17- January January January 2012 1, 2018 1, 2019 1, 2020 (b) Processed gas, per liter of volume P 0.05 capacity. (c) Waxes and petrolatum per kilogram. P 3.50 (d) Denatured alcohol to be used for P 0.05 P 8.00 P 9.00 P 10.00 motive power, per liter of volume capacity. (e) Asphalts, per kilogram. P 0.56 (f) Naphtha, regular gasoline, and other P 4.35 similar products of distillation, per liter of P 7.00 P 9.00 P 10.00 volume capacity TRAIN Briefing – Excise Taxes VER 1.0 – January 2018 Petroleum PRODUCTS RA TRAIN 10351/ RR 17- January January January 2012 1, 2018 1, 2019 1, 2020 - Pyrolysis gasoline P 7.00 P 9.00 P 10.00 (g) Unleaded premium gasoline, per liter of P 4.35 volume capacity (h) Kerosene, per liter of volume capacity P 0.00 P 3.00 P 4.00 P 5.00 (i) Aviation turbo jet fuel, per liter of volume P 3.67 capacity Aviation gas - P 4.00 P 4.00 P 4.00 (j) Kerosene, when used as aviation fuel, per P 3.67 liter of volume capacity TRAIN Briefing – Excise Taxes VER 1.0 – January 2018 Petroleum PRODUCTS RA TRAIN 10351/ RR 17- January January January 2012 1, 2018 1, 2019 1, 2020 (k) Diesel fuel oil, and on similar fuel oils P 0.00 having more or less the same generating power, per liter of volume capacity (l) Liquefied petroleum gas used for motive P 0.00 power, per kilogram P 2.50 P 4.50 P 6.00 (m) Bunker fuel oil, and on similar oils having P 0.00 more or less the same generating power, per liter of volume capacity (n) Petroleum coke, per metric ton - (o) Liquefied petroleum gas, per kilogram P 0.00 P 1.00 P 2.00 P 3.00
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 Petroleum PRODUCTS RA TRAIN 10351/ RR 17- January January January 2012 1, 2018 1, 2019 1, 2020 (p) Naphtha and pyrolysis gasoline, when used as a raw P 0.00 material in the production of petrochemical products or in the refining of petroleum products, or as replacement fuel for natural-gas-fired-combined cycle power plant, in lieu of locally-extracted natural gas during the non-availability thereof, per liter of volume capacity P 0.00 P 0.00 P 0.00 (q) Liquefied petroleum gas, when used as raw material P 0.00 in the production of petrochemical products, per kilogram (r) Petroleum coke, when used as feedstock to any - power generating facility, per metric ton
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 8 Exception to Revised Excise Tax Rates The revised rates under Section 2 shall not apply under the following instances: a) Lubricating oils and greases produced from basestocks and additives on which the excise tax has already been paid Petroleum shall no longer be subject to excise tax. b) Unless otherwise provided by special laws, if the denatured alcohol is mixed with gasoline, the excise tax on which has already been paid, only the alcohol content shall be subject to the tax herein prescribed. The removal of denatured alcohol of not less than one hundred eighty degrees (180°) proof (ninety percent (90%) absolute alcohol) shall be deemed to have been removed for motive power, unless shown otherwise;
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 9 Creditable Excise Tax The excise tax paid on the purchased base stock (bunker) used in the manufacture of excisable articles and forming part thereof shall Petroleum be credited against the excise tax due thereon. For purposes of these regulations, any excess of excise taxes paid on raw materials resulting from manufacturing, blending, processing, storage and handling losses shall not give rise to a tax refund or credit. TRAIN Briefing – Excise Taxes VER 1.0 – January 2018 10 Suspension of Scheduled Increase For the period covering 2018 to 2020, the scheduled increase in the excise tax on fuel as imposed in this section shall be suspended when Petroleum the average Dubai crude oil based on Mean Of Platts Singapore (MOPS) for three (3) months prior to the scheduled increase of the month reaches or exceeds eighty dollars (USD 80) per barrel. A separate Revenue Regulation (RR) shall be issued for this purpose. TRAIN Briefing – Excise Taxes VER 1.0 – January 2018 11 Mandatory Marking of all Petroleum Products The use of an official fuel marking or similar technology on petroleum products that are refined, manufactured, or imported into the Philippines, and that are subject to the Petroleum payment of taxes and duties, such as but not limited to unleaded premium gasoline, kerosene, and diesel fuel oil shall be required. It shall be implemented in accordance with rules and regulations to be issued by the Secretary of Finance in consultation with the Commissioner of Internal Revenue and Commissioner of Customs and in coordination with the Secretary of Energy. TRAIN Briefing – Excise Taxes VER 1.0 – January 2018 12 Transitory Provision a) Submission of Stock Inventories. Concerned oil companies, owners, operators or lessees of storage depots shall submit duly notarized inventories of all petroleum products as of Petroleum midnight of December 31, 2017 to Excise LT Field Operations Division (ELTFOD)
b) Accounting for stocks or inventory of goods after
each date of effectivity of the new excise tax rates. These inventories of petroleum products taken prior to each date of effectivity shall be liquidated and accounted for on a “First-In First-Out” (FIFO) TRAIN Briefing – Excise Taxes method of inventory. VER 1.0 – January 2018 13 Transitory Provision
c) Issuance of Withdrawal Certificates. All
Withdrawal Certificates issued covering the removals of petroleum products subject to the old Petroleum or previous tax rates products shall be prominently stamped with the phrase “STOCKS ON HAND PRIOR TO APPLICABLE DATE OF EFFECTIVITY”.
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 Minerals
PRODUCT TYPE RA TRAIN
10351/ RR 17- January January January 2012 1, 2018 1, 2019 1, 2020 On coal and coke, per metric ton P 10.00 P 50.00 P 100.00 P 150.00
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 Minerals
PRODUCT TYPE RA 10351/ TRAIN
RR 17- 2012
On all non-metallic mineral and quarry resources
1. Locally extracted or produced, based on actual 2% 4% market value 2. In the case of importation based on value used by Bureau of Customs in determining tariff and 2% 4% customs duties, net of excise tax and VAT 3. Locally-extracted natural gas and liquefied natural P0.00 Exempt gas
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 Minerals
PRODUCT TYPE RA 10351/ TRAIN
RR 17- 2012
On all non-metallic mineral and quarry resources
1. Locally extracted or produced, based on actual market value a) Copper and other metallic minerals 2% 4% b) Gold and chromite 2% 4%
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 Minerals PRODUCT TYPE RA 10351/ TRAIN RR 17- 2012
On all non-metallic mineral and quarry resources
2. In the case of importation based on value used by Bureau of Customs in determining tariff and customs duties, net of excise tax and VAT a) Copper and other metallic minerals 2% 4% b) Gold and chromite 2% 4% On indigenous petroleum, based on the fair international market price thereof, on the first taxable 3% 6% sale, barter, exchange or similar transaction. TRAIN Briefing – Excise Taxes VER 1.0 – January 2018 Automobiles Based on the Net Manufacturer’s Price/Importer’s Selling Price RR 25-2003 TRAIN Up to P600 Thousand 2% P0 up to P600,000 4% P 12,000 + 20% Over P600,000 up to Over P600,000 P 1,100,000 in excess of 10% P 600,000 up to P1,000,000 P112,000+ 40% Over P 1,100,000 Over P1,000,000 Up to P2,100,000 in excess of 20% P1,100,000 up to P4,000,000 P512,000 + 60% Over P2,100,000 in excess of Over P4,000,000 50% P2,100,000 TRAIN Briefing – Excise Taxes VER 1.0 – January 2018 19 Hybrid Electric Vehicle – refer to a motor vehicle powered by electric energy, with or without provision for off-vehicle charging, in combination with gasoline, diesel or any Automobiles other motive power: provided, that, for purposes of this Act, a Hybrid Electric Vehicle must be able to propel itself from a stationary condition using solely electric motor
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 20 Provided, that Hybrid Vehicles shall be taxed at fifty percent (50%) of the applicable excise tax rates on automobiles subject to the conditions in Section 9(E) of Automobiles this regulation: Provided, further, that in the case of imported automobiles not for sale, the tax imposed herein shall be based on the total landed value, including transaction value, customs duty and all other charges.
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 21 Tax-Exempt Removals of Automobiles E. Purely electric vehicles shall be exempt from the excise tax on automobiles. Hybrid vehicles shall be subject to fifty percent (50%) of the applicable excise tax rates on automobiles. Prior to the removal of the automobiles from the manufacturing plant or customs custody, the Automobiles department of energy (DOE) shall determine whether the automobiles are hybrid vehicles or purely electric vehicles, and furnish the Commissioner of Internal Revenue, Attention: Chief, Excise Large Taxpayers Regulatory Division (ELTRD), certified copies of the results of such examination or indorsement to that effect. F. Pick-ups
TRAIN Briefing – Excise Taxes
VER 1.0 – January 2018 22 Validation of Manufacturer’s and Importer’s Selling Price By the end of three months from the imposition of the new rates, the Bureau of Internal Revenue shall validate the Manufacturer’s or Importer’s Selling Price of the newly introduced models against the Manufacturer’s or Importer’s Automobiles Selling Price as defined herein and initially determine the correct bracket under which a newly introduced model shall be classified. After the end of one year from such validation, and every year thereafter, the Bureau of Internal Revenue shall revalidate the initially validated Net Manufacturer’s or Importer’s Selling Price against the Net Manufacturer’s or Importer’s Selling Price as of the time of revalidation in order to finally determine the correct tax bracket under which a newly introduced model shall be classified. TRAIN Briefing – Excise Taxes VER 1.0 – January 2018 23 1. All manufacturer’s/assembler’s or importers are hereby required to file an updated manufacturer’s/assemblers or importer’s sworn statement for each brands/models of automobiles as of the day immediately before the Transitory date of effectivity of these Regulations. Provisions 2. All manufacturers/assemblers or importers shall submit a duly notarized list of inventory on-hand that are located within the manufacturing/assembly plant, storage facility or warehouse or the customs’ premises for which import entries have been filed as of the day immediately before the date of effectivity of these Regulations, indicating therein the brand, year model, engine, body and chassis numbers thereof, TRAIN Briefing – Excise Taxes VER 1.0 – January 2018
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