TOBACCO and PETROLEUM

PRODUCTS
EXCISE TAX
Tobacco Products (Sec. 144 – 147)
(a) Tobacco Products
SECTION 144 (AMENDED BY R.A. 11467)
Php 1.75 on each kilogram of the following:
(a) Tobacco twisted by hand or reduced into a condition to be consumed in any
manner other than the ordinary mode of drying and curing;
(b) Tobacco prepared or partially prepared with or without the use of any
machine or instruments or without being pressed or sweetened except as
otherwise provided hereunder; and
(c) Fine-cut shorts and refuse, scraps, clippings, cuttings, stems and sweepings of
tobacco except as otherwise provided hereunder.
Php 1.50 on tobacco specially prepared for
chewing so as to be unsuitable for use in any
other manner, on each kilogram
 The rates of tax imposed under this Section shall be
increased by 4% every year thereafter effective on
January 1, 2014, through revenue regulations issued by
the Secretary of Finance.
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(b) Heated Tobacco Products
What is a Heated Tobacco Product?

Refers to tobacco products that may be consumed through

heating tobacco, either electrically or through other means
sufficiently to release an aerosol that can be inhaled, without
burning or any combustion of the tobacco. Heated tobacco
products include liquid solutions and gels that are part of the
product and are heated to generate an aerosol.
 P25.00 P27.50 P30.00 P32.50
January 1, 2020 January 1, 2021 January 1, 2022 January 1, 2023

per pack of 20 units or packaging combinations of not more than 20 units;

The rate of tax imposed under this Subsection shall be

increased by 5% every year effective on January 1, 2024,
through revenue regulations issued by the Secretary of
Finance. 
Other matters
Selling heated tobacco products to persons below 21 years old shall be
prohibited.
It shall not be a defense for the person selling or distributing that he/she did not
know or was not aware of the real age of the minor. Neither shall it be a defense
that he/she did not know nor had any reason to believe that the product was for
the consumption of the minor to whom it was sold.
Unit packets and any outside wrapping of heated tobacco products and other
similar products shall carry a health warning compliant with Republic Act No.
10643, otherwise known as ‘The Graphic Health Warnings Law’. 
(c) Vapor Products
What are Vapor Products?
 Shall mean electronic nicotine and non-nicotine delivery systems
(ENDS/ENNDS), which are combinations of (i) a liquid solution or gel, that
transforms into an aerosol without combustion through the employment of a
mechanical or electronic heating element, battery or circuit that can be used to
heat such solution or gel, and includes, but is not limited to (ii) a cartridge, (iii) a
tank, and (iv) the device without a cartridge or tank. It is commonly known as
nicotine salt/salt nicotine, and conventional “freebase” or “classic” nicotine, and
other similar products: Provided, That all vapor products shall be covered by this
Act regardless of its nicotine content.
 1. Nicotine Salt or Salt Nicotine
P37.00 P42.00 P47.00 P52.00
January 1, 2020 January 1, 2021 January 1, 2022 January 1, 2023

per milliliter or a fraction thereof

Provided, That the rates of tax imposed under this Subsection shall be increased by five
percent (5%) every year effective on January 1, 2024, through revenue regulations issued
by the Secretary of Finance.
2. Conventional ‘Freebase’ or ‘Classic’ nicotine

P45.00 P50.00 P55.00 P60.00

January 1, 2020 January 1, 2021 January 1, 2022 January 1, 2023

per ten 10 milliliters or a fraction thereof;

Provided, That the rates of tax imposed under this subsection shall be increased by five
percent (5%) every year effective January 1, 2024, through revenue regulations to be
issued by the Secretary of Finance.
Other matters
Selling vapor products to persons below 21 years old shall be prohibited
The manufacture, importation, sale and distribution of vapor products with flavoring other than
plain tobacco or plain menthol, shall be prohibited.
It shall not be a defense for the person selling or distributing that he/she did not know or was not
aware of the real age of the minor. Neither shall it be a defense that he/she did not know nor had
any reason to believe that the product was for the consumption of the minor to whom it was sold.
Unit packets and any outside wrapping of vapor products and other similar products shall carry a
health warning compliant with Republic Act No. 10643, otherwise known as ‘The Graphic
Health Warnings Law’.  
Cigars and Cigarettes
SECTION 145 (AMENDED BY R.A. 11346)
What are Cigars and Cigarettes?
'Cigars' mean all rolls of tobacco or any substitute thereof, wrapped in leaf
tobacco that are consumed via combustion of the tobacco.
'Cigarettes' mean all rolls of finely-cut leaf tobacco, or any substitute therefor,
wrapped in paper or in any other material that are consumed via combustion of
the tobacco.
(a) Cigars
(1) Effective on January 1, 2013
(a) An ad valorem tax equivalent to twenty percent (20%) of the net retail price (excluding the
excise tax and the value-added tax) per cigar; and
(b) In addition to the ad valorem tax herein imposed, a specific tax of Five pesos (P5.00) per
cigar.
(2) In addition to the ad valorem tax herein imposed, the specific tax rate of Five pesos (₱5.00)
imposed under this Subsection shall be increased by five percent (5%) effective on January 1,
2024 through revenue regulations issued by the Secretary of Finance.
 2013 2014 2015 2016 2017

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(b) Cigarettes packed by Hand
‘Cigarettes packed by hand’ shall refer to the manner of packaging of cigarette sticks using an
individual person’s hands and not through any other means such as a mechanical device, machine or
equipment.
Effective on January 1, 2020, Forty-five pesos (₱45.00) per pack;
Effective on January 1, 2021. Fifty pesos (₱50.00) per pack;
Effective on January 1, 2022, Fifty-five pesos (₱55.00) per pack;
Effective on January 1, 2023, Sixty pesos (₱60.00) per pack;
The rates of tax imposed under this Subsection shall be increased by five percent (5%) every year
effective on January 1, 2024, through revenue regulations issued by the Secretary of Finance.
Duly registered cigarettes packed by hand shall only be packed in twenties and other packaging
combinations of not more than twenty (20).
(c) Cigarettes packed by Machine
‘Cigarettes packed by machine’ shall refer to the manner of packaging of cigarette sticks using
means such as a mechanical device, machine or equipment.
Effective on January 1,2020, Forty-five pesos (₱45.00) per pack;
Effective on January 1, 2021, Fifty pesos (₱50.00) per pack;
Effective on January 1. 2022, Fifty-five pesos (₱55.00) per pack;
Effective on January 1, 2023, Sixty pesos (₱60.00) per pack;
The rates of tax imposed under this Subsection shall be increased by five percent (5%) every year
effective on January 1, 2024, through revenue regulations issued by the Secretary of Finance.
Duly registered cigarettes packed by machine shall only be packed in twenties and other
packaging combinations of not more than twenty (20).
https://taxreform.dof.gov.ph/tax-reform-packages/package-2plus-sin-taxes/
Petroleum Products ( Sec. 148)
AMENDED BY TRAIN LAW
https://www.bir.gov.ph/index.php/tax-information/excise-tax.html
https://www.bir.gov.ph/index.php/tax-information/excise-tax.html
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Mandatory Marking of ALL Petroleum Products
There shall be a list of chemical additives and corresponding quantitative ratio as
identified by the Secretary of Finance as official fuel markers. The official fuel
markers shall be distinct and, to the greatest degree possible, impossible to
imitate or replicate: Provided, That the official fuel marker must be unique to the
Philippines and that its chemical composition and quantitative ratio must persist
for at least three (3) years from their application or administration to the
unmarked fuel;
WHO? The person, entity, or taxpayer who owns or enters the petroleum
products into the country, or the person to whom the petroleum products are
consigned
In the absence of official marking, it shall be presumed that the same were
withdrawn with the intention to evade the payment of the taxes and duties due
thereon;
The use of fraudulent marker on the petroleum products shall be considered
prima facie evidence that the same have been withdrawn or imported without
payment of taxes and duties due thereon;