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FIFTEENTH CONGRESS OF THE REPUBLIC )

OF THE PHILIPPINES )

Third Regular Session )

AN ACT

RESTRUCTURING THE EXCISE TAX ON ALCOHOL AND TOBACCO PRODUCTS BY

AMENDING SECTIONS 141, 142, 143, 144, 145, 8, 131 AND 288 OF REPUBLIC ACT NO.

8424, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF

1997, AS AMENDED BY REPUBLIC ACT NO. 9334, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 141 of the National Internal Revenue Code of 1997, as amended by1

Republic Act No. 9334, is hereby further amended to read as follows:2

SEC. 141. Distilled Spirits. On distilled spirits, SUBJECT TO THE3

PROVISIONS OF SECTION 133 OF THIS CODE, AN EXCISE TAX SHALL BE4

LEVIED, ASSESSED AND [there shall be] collected [, subject to the provisions of5

Section 133 of this Code, excise taxes as follows] BASED ON THE FOLLOWING6

SCHEDULES:7

(A) EFFECTIVE ON JANUARY 1, 20138

1. AN AD VALOREM TAX EQUIVALENT TO FIFTEEN PERCENT9

(15%) OF THE NET RETAIL PRICE (EXCLUDING THE EXCISE10

TAX AND THE VALUE-ADDED TAX) PER PROOF; AND11

2. IN ADDITION TO THE AD VALOREMTAX HEREIN IMPOSED, A12

SPECIFIC TAX OF TWENTY PESOS (P20.00) PER PROOF LITER.13

(B) EFFECTIVE ON JANUARY 1, 201514

1. AN AD VALOREM TAX EQUIVALENT TO TWENTY PERCENT15

(20%) OF THE NET RETAIL PRICE (EXCLUDING THE EXCISE16

TAX AND THE VALUE-ADDED TAX) PER PROOF; AND17

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2. IN ADDITION TO THE AD VALOREMTAX HEREIN IMPOSED, A1

SPECIFIC TAX OF TWENTY PESOS (P20.00) PER PROOF LITER.2

(C) IN ADDITION TO THEAD VALOREMTAX HEREIN IMPOSED, THE3

SPECIFIC TAX RATE OF TWENTY PESOS (P20.00) IMPOSED UNDER4

THIS SECTION SHALL BE INCREASED BY FOUR PERCENT (4%)5

EVERY YEAR THEREAFTER EFFECTIVE ON JANUARY 1, 2016,6

THROUGH REVENUE REGULATIONS ISSUED BY THE SECRETARY7

OF FINANCE.8

[(a) If produced from the sap of nipa, coconut, cassava, camote, or buri palm or9

from the juice, syrup or sugar of the cane, provided such materials are produced10

commercially in the country where they are processed into distilled spirits, per proof liter,11

Eleven pesos and sixty-five centavos (P11.65);]12

[(b) If produced from raw materials other than those enumerated in the preceding13

paragraph, the tax shall be in accordance with the net retail price per bottle of seven14

hundred fifty milliliter (750 ml.) volume capacity (excluding the excise tax and the value-15

added tax) as follows:]16

[(1) Less than Two hundred and fifty pesos (P250.00) One hundred twenty-six17

pesos (P126.00), per proof liter;]18

[(2) Two hundred and fifty pesos (P250.00) up to Six hundred and seventy-five19

pesos (P675.00) Two hundred fifty-two pesos (P252.00), per proof liter; and]20

[(3) More than Six hundred and seventy-five pesos (P675.00) Five hundred four21

pesos (P504.00), per proof liter.]22

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[(c)] Medicinal preparations, flavoring extracts, and all other preparations, except1

toilet preparations, of which, excluding water, distilled spirits form the chief ingredient,2

shall be subject to the same tax as such chief ingredient.3

This tax shall be proportionally increased for any strength of the spirits taxed over4

proof spirits, and the tax shall attach to this substance as soon as it is in existence as such,5

whether it be subsequently separated as pure or impure spirits, or transformed into any6

other substance either in the process of original production or by any subsequent process.7

Spirits or distilled spirits is the substance known as ethyl alcohol, ethanol or8

spirits of wine, including all dilutions, purifications and mixtures thereof, from whatever9

source, by whatever process produced, and shall include whisky, brandy, rum, gin and10

vodka, and other similar products or mixtures.11

Proof spirits is liquor containing one-half (1/2) of its volume of alcohol of a12

specific gravity of seven thousand nine hundred and thirty-nine ten thousandths (0.7939)13

at fifteen degrees centigrade (15C). A proof liter means a liter of proof spirits.14

Net retail price, [as determined by the Bureau of Internal Revenue through a15

price survey to be conducted by the Bureau of Internal Revenue itself, or by the National16

Statistics Office when deputized for the purpose by the Bureau of Internal Revenue,] shall17

mean the price at which the distilled spirits is sold on retail in at least FIVE (5) [ten (10)]18

major supermarkets in Metro Manila, excluding the amount intended to cover the19

applicable excise tax and the value-added tax. For [brands] DISTILLED SPIRITS20

which are marketed outside Metro Manila, the net retail price shall mean the price at21

which the distilled spirits is sold in at least five (5) major supermarkets in the region22

excluding the amount intended to cover the applicable excise tax and the value-added tax.23

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MAJOR SUPERMARKETS, AS CONTEMPLATED UNDER THIS ACT,1

SHALL BE THOSE WITH THE HIGHEST ANNUAL GROSS SALES IN METRO2

MANILA OR THE REGION, AS THE CASE MAY BE, AS DETERMINED BY3

THE NATIONAL STATISTICS OFFICE, AND SHALL EXCLUDE RETAIL4

OUTLETS OR KIOSKS, CONVENIENCE OR SARI-SARI STORES, AND5

OTHERS OF A SIMILAR NATURE; PROVIDED, THAT NO TWO (2)6

SUPERMARKETS IN THE LIST TO BE SURVEYED ARE AFFILIATED7

AND/OR BRANCHES OF EACH OTHER; PROVIDED, FINALLY, THAT IN8

CASE A PARTICULAR DISTILLED SPIRIT IS NOT SOLD IN MAJOR9

SUPERMARKETS, THE PRICE SURVEY CAN BE CONDUCTED IN RETAIL10

OUTLETS WHERE SAID DISTILLED SPIRIT IS SOLD IN METRO MANILA11

OR THE REGION, AS THE CASE MAYBE, UPON THE DETERMINATION OF12

THE COMMISSIONER OF THE INTERNAL REVENUE.13

THE NET RETAIL PRICE SHALL BE DETERMINED BY THE BUREAU14

OF INTERNAL REVENUE (BIR) THROUGH A PRICE SURVEY UNDER15

OATH.16

THE METHODOLOGY AND ALL PERTINENT DOCUMENTS USED IN17

THE CONDUCT OF THE LATEST PRICE SURVEY SHALL BE SUBMITTED18

TO THE CONGRESSIONAL OVERSIGHT COMMITTEE ON THE19

COMPREHENSIVE TAX REFORM PROGRAM CREATED UNDER R.A. NO.20

8240.21

[Variants of existing brands and variants of new brands which are introduced in22

the domestic market after the effectivity of this Act shall be taxed under the proper23

classification thereof based on their suggested net retail price: Provided, however, That24

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such classification shall not, in any case, be lower than the highest classification of any1

variant of that brand. ]2

[A variant of a brand shall refer to a brand on which a modifier is prefixed and/or3

suffixed to the root name of the brand.]4

[New brands, as defined in the immediately following paragraph, shall initially be5

classified according to their suggested net retail price.]6

[Willful u] Understatement of the suggested net retail price by as much as fifteen7

percent (15%) of the actual net retail price shall render the manufacturer OR8

IMPORTER liable for additional excise tax equivalent to the tax due and difference9

between the understated suggested net retail price and the actual net retail price.10

[New brand shall mean a brand registered after the date of effectivity of R. A.11

No. 8240.]12

DISTILLED SPIRITS INTRODUCED IN THE DOMESTIC MARKET13

AFTER THE EFFECTIVITY OF THIS ACT SHALL BE INITIALLY TAXED14

ACCORDING TO THEIR SUGGESTED NET RETAIL PRICES.15

Suggested net retail price shall mean the net retail price at which [new brands, as16

defined above, of] locally manufactured or imported distilled spirits are intended by the17

manufacturer or importer to be sold on retail in major supermarkets or retail outlets in18

Metro Manila for those marketed nationwide, and in other regions, for those with regional19

markets. At the end of three (3) months from the product launch, the Bureau of Internal20

Revenue shall validate the suggested net retail price of the new brand against the net retail21

price as defined herein and INITIALLY determine the correct tax [bracket to which a22

particular new brand of] ON A NEWLY INTRODUCED distilled spirits[, as defined23

above, shall be classified]. After the end ofNINE (9) [eighteen (18)] months from such24

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validation, the Bureau of Internal Revenue shall revalidate the initially validated net retail1

price against the net retail price as of the time of revalidation in order to finally determine2

the correct tax [ bracket which a particular new brand of] ON A NEWLY3

INTRODUCED distilled spirits. [ shall be classified: Provided, however, That brands of4

distilled spirits introduced in the domestic market between January 1, 1997 and December5

31, 2003 shall remain in the classification under which the Bureau of Internal Revenue6

has determined them to belong as of December 31, 2003. Such classification of new7

brands and brands introduced between January 1, 1997 and December 31, 2003 shall not8

be revised except by an act of Congress.]9

[The rates of tax imposed under this Section shall be increased by eight percent10

(8%) every two years starting on January 1, 2007 until January 1, 2011.]11

[Any downward reclassification of present categories, for tax purposes, of existing12

brands of distilled spirits duly registered at the time of the effectivity of this Act which13

will reduce the tax imposed herein, or the payment thereof, shall be prohibited.]14

[The classification of each brand of distilled spirits based on the average net retail15

price as of October 1, 1996, as set forth in Annex A, including the classification of16

brands for the same products which, although not set forth in said Annex A, were17

registered and were being commercially produced and marketed on or after October 1,18

1996, and which continue to be commercially produced and marketed after the effectivity19

of this Act, shall remain in force until revised by Congress.]20

ALL DISTILLED SPIRITS EXISTING IN THE MARKET AT THE TIME21

OF THE EFFECTIVITY OF THIS ACT SHALL BE TAXED ACCORDING TO22

THE TAX RATES PROVIDED ABOVE BASED ON THE LATEST PRICE23

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SURVEY OF THE DISTILLED SPIRITS CONDUCTED BY THE BUREAU OF1

INTERNAL REVENUE.2





8240.7

Manufacturers and importers of distilled spirits shall, within thirty (30) days from8

the effectivity of this Act, and within the first five (5) days of every third month9

thereafter, submit to the Commissioner a sworn statement of the volume of sales for each10

particular brand of distilled spirits sold at his establishment for the three-month period11

immediately preceding.12

Any manufacturer or importer who, in violation of this Section, [knowingly]13

misdeclares or misrepresents in his or its sworn statement herein required any pertinent14

data or information shall, upon final findings by the Commissioner that the violation was15

committed, be penalized by a summary cancellation or withdrawal of his or its permit to16

engage in business as manufacturer or importer of distilled spirits.17

Any corporation, association or partnership liable for any of the acts or omissions18

in violation of this Section shall be fined treble the amount of deficiency taxes, surcharges19

and interest which may be assessed pursuant to this Section.20

Any person liable for any of the acts or omissions prohibited under this Section21

shall be criminally liable and penalized under Section 254 of this Code. Any person who22

willfully aids or abets in the commission of any such act or omission shall be criminally23

liable in the same manner as the principal.24

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If the offender is not a citizen of the Philippines, he shall be deported immediately1

after serving the sentence, without further proceedings for deportation.2

SEC. 2. Section 142 of the National Internal Revenue Code of 1997, as amended by Republic3

Act No. 9334, is hereby further amended to read as follows:4

SEC. 142. Wines. On wines, there shall be collected per liter of volume5

capacity EFFECTIVE ON JANUARY 1, 2013, the following EXCISE taxes:6

(a) Sparkling wines/champagnes regardless of proof, if the net retail price per7

bottle OF SEVEN HUNDRED FIFTY MILLILITER (750 ML.) VOLUME8

CAPACITY (excluding the excise tax and the value-added tax) is:9

(1) Five hundred pesos (P500.00) or less [One hundred forty-five10

pesos and sixty centavos (P145.60)] TWO HUNDRED FIFTY11

PESOS (P250.00); and12

(2) More than Five hundred pesos (P500.00) [Four hundred thirty-13

six pesos and eighty centavos (P436.80)] SEVEN HUNDRED14

PESOS (P700.00).15

(b) Still wines AND CARBONATED WINES containing fourteen percent (14%)16

of alcohol by volume or less, [Seventeen pesos and forty-seven centavos (P17.47)]17

THIRTY PESOS (P30.00); and18

(c) Still wines AND CARBONATED WINES containing more than fourteen19

percent (14%) but not more than twenty-five percent (25%) of alcohol by volume, [Thirty-20

four pesos and ninety-four centavos (P34.94)] SIXTY PESOS (P60.00).21

THE RATES OF TAX IMPOSED UNDER THIS SECTION SHALL BE22

INCREASED BY FOUR PERCENT (4%) EVERY YEAR THEREAFTER23

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EFFECTIVE ON JANUARY 1, 2014, THROUGH REVENUE REGULATIONS1

ISSUED BY THE SECRETARY OF FINANCE.2

Fortified wines containing more than twenty-five percent (25%) of alcohol by3

volume shall be taxed as distilled spirits. Fortified wines shall mean natural wines to4

which distilled spirits are added to increase their alcohol strength.5


price survey to be conducted by the Bureau of Internal Revenue itself, or by the National7


mean the price at which SPARKLING wine/CHAMPAGNE is sold on retail in at least9

FIVE (5) [ ten (10)] major supermarkets in Metro Manila, excluding the amount intended10

to cover the applicable excise tax and the value-added tax. For [brands]11

SPARKLING WINES/CHAMPAGNES which are marketed outside Metro Manila, the12

net retail price shall mean the price at which the wine is sold in at least five (5) major13

supermarkets in the region excluding the amount intended to cover the applicable excise14

tax and the value-added tax.15









CASE A PARTICULAR SPARKLING WINE/CHAMPAGNE IS NOT SOLD IN24

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SHALL RENDER THE MANUFACTURER OR IMPORTER LIABLE FOR1

ADDITIONAL EXCISE TAX EQUIVALENT TO THE TAX DUE AND2

DIFFERENCE BETWEEN THE UNDERSTATED SUGGESTED NET RETAIL3

PRICE AND THE ACTUAL NET RETAIL PRICE.4

[ New brand shall mean a brand registered after the date of effectivity of R. A.5

No. 8240.]6

SPARKLING WINES/CHAMPAGNES INTRODUCED IN THE7

DOMESTIC MARKET AFTER THE EFFECTIVITY OF THIS ACT SHALL BE8

INITIALLY TAX CLASSIFIED ACCORDING TO THEIR SUGGESTED NET9

RETAIL PRICES.10


defined above, of] locally manufactured or imported SPARKLING12

wines/CHAMPAGNES are intended by the manufacturer or importer to be sold on retail13

in major supermarkets or retail outlets in Metro Manila for those marketed nationwide,14

and in other regions, for those with regional markets. At the end of three (3) months from15

the product launch, the Bureau of Internal Revenue shall validate the suggested net retail16

price of the [new brand] SPARKLING WINE/CHAMPAGNE against the net retail17

price as defined herein and INITIALLY determine the correct tax bracket to which a18

[particular new brand of wine, as defined above,] NEWLY INTRODUCED19

SPARKLING WINE/CHAMPAGNE shall be classified. After the end ofNINE (9)20

[eighteen (18)] months from such validation, the Bureau of Internal Revenue shall21

revalidate the initially validated net retail price against the net retail price as of the time of22

revalidation in order to finally determine the correct tax bracket TO which a [particular23

new brand of] NEWLY INTRODUCED SPARKLING wine[s]/CHAMPAGNE shall24

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be classified.[: Provided, however, That brands of wines introduced in the domestic1

market between January 1, 1997 and December 31, 2003 shall remain in the classification2

under which the Bureau of Internal Revenue has determined them to belong as of3

December 31, 2003. Such classification of new brands and brands introduced between4

January 1, 1997 and December 31, 2003 shall not be revised except by any act of5

Congress.]6




brands of wines duly registered at the time of the effectivity of this Act which will reduce10

the tax imposed herein, or the payment thereof, shall be prohibited.]11

[The classification of each brand of wines based on the average net retail price as12

of October 1, 1996, as set forth in Annex B, including the classification of brands for the13

same products which, although not set forth in said Annex B, were registered and were14

being commercially produced and marketed on or after October 1, 1996, and which15

continue to be commercially produced and marketed after the effectivity of this Act, shall16

remain in force until revised by Congress.]17

THE PROPER TAX CLASSIFICATION OF SPARKLING18

WINES/CHAMPAGNES, WHETHER REGISTERED BEFORE OR AFTER THE19

EFFECTIVITY OF THIS ACT, SHALL BE DETERMINED EVERY TWO (2)20

YEARS FROM THE DATE OF EFFECTIVITY OF THIS ACT.21

ALL SPARKLING WINES/CHAMPAGNES EXISTING IN THE MARKET22

AT THE TIME OF THE EFFECTIVITY OF THIS ACT SHALL BE CLASSIFIED23

ACCORDING TO THE NET RETAIL PRICES AND THE TAX RATES24

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PROVIDED ABOVE BASED ON THE LATEST PRICE SURVEY OF THE1

SPARKLING WINES/CHAMPAGNES CONDUCTED BY THE BUREAU OF2

INTERNAL REVENUE.3





8240.8

Manufacturers and importers of wines shall, within thirty (30) days from the9

effectivity of this Act, and within the first five (5) days of every month thereafter, submit10

to the Commissioner a sworn statement of the volume of sales for each particular brand of11

wines sold at his establishment for the three-month period immediately preceding.12



data or information shall, upon [discovery,] FINAL FINDINGS BY THE15

COMMISSIONER THAT THE VIOLATION WAS COMMITTED be penalized by16

a summary cancellation or withdrawal of his or its permit to engage in business as17

manufacturer or importer of wines.18






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SEC. 143. Fermented Liquors. There shall be levied, assessed and7

collected an excise tax on beer, lager beer, ale, porter and other fermented liquors except8

tuba, basi, tapuy and similar fermented liquors in accordance with the following schedule:9

[(a) If the net retail price (excluding the excise tax and the value-added tax) per10

liter of volume capacity is less than Fourteen pesos and fifty centavos (P14.50), the tax11

shall be Eight pesos and twenty-seven centavos (P8.27) per liter;]12

[(b) If the net retail price (excluding the excise tax and the value-added tax) per13

liter of volume capacity is Fourteen pesos and fifty centavos (P14.50) up to Twenty-two14

pesos (P22.00), the tax shall be Twelve pesos and thirty centavos (P12.30) per liter; ]15

[(c) If the net retail price (excluding the excise tax and the value-added tax) per16

liter of volume capacity is more than Twenty-two pesos (P22.00), the tax shall be17

Sixteen pesos and thirty-three centavos (P16.33) per liter. ]18

[Variants of existing brands and variants of new brands which are introduced in the19

domestic market after the effectivity of this Act shall be taxed under the proper20

classification thereof based on their suggested net retail price: Provided, however, That21

such classification shall not, in any case, be lower than the highest classification of any22

variant of that brand. ]23

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[A variant of a brand shall refer to a brand on which a modifier is prefixed and/or1

suffixed to the root name of the brand.]2

[Fermented liquors which are brewed and sold at micro-breweries or small3

establishments such as pubs and restaurants shall be subject to the rate in paragraph (c)4

hereof. ]5


classified according to their suggested net retail price. ]7


No. 8240.]9

EFFECTIVE ON JANUARY 1, 201310

(A) IF THE NET RETAIL PRICE (EXCLUDING THE EXCISE TAX11

AND THE VALUE-ADDED TAX) PER LITER OF VOLUME CAPACITY IS12

FIFTY PESOS AND SIXTY CENTAVOS (P50.60) OR LESS, THE TAX SHALL13

BE FIFTEEN PESOS (P15.00) PER LITER; AND14

(B) IF THE NET RETAIL PRICE (EXCLUDING THE EXCISE TAX15


MORE THAN FIFTY PESOS AND SIXTY CENTAVOS (P50.60), THE TAX17

SHALL BE TWENTY PESOS (P20.00) PER LITER.18





BE SEVENTEEN PESOS (P17.00) PER LITER; AND23

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SHALL BE TWENTY-ONE PESOS (P21.00) PER LITER.4





BE NINETEEN PESOS (P19.00) PER LITER; AND9




SHALL BE TWENTY-TWO PESOS (P22.00) PER LITER.13





BE TWENTY-ONE PESOS (P21.00) PER LITER; AND18




SHALL BE TWENTY-THREE PESOS (P23.00) PER LITER.22

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EFFECTIVE ON JANUARY 1, 2017, THE TAX ON ALL FERMENTED1

LIQUORS SHALL BE TWENTY-THREE PESOS AND FIFTY CENTAVOS2

(P23.50) PER LITER.3




ISSUED BY THE SECRETARY OF FINANCE. HOWEVER, IN CASE OF7

FERMENTED LIQUORS AFFECTED BY THE NO DOWNWARD8

RECLASSIFICATION PROVISION PRESCRIBED UNDER THIS SECTION,9

THE FOUR PERCENT (4%) INCREASE SHALL APPLY TO THEIR10

RESPECTIVE APPLICABLE TAX RATES.11

FERMENTED LIQUORS WHICH ARE BREWED AND SOLD AT12

MICRO-BREWERIES OR SMALL ESTABLISHMENTS SUCH AS PUBS AND13

RESTAURANTS SHALL BE SUBJECT TO THE RATE OF TWENTY-EIGHT14

PESOS (P28.00) PER LITER EFFECTIVE ON JANUARY 1, 2013; PROVIDED,15

THATTHIS RATE SHALL BE INCREASED BY FOUR PERCENT (4%) EVERY16

YEAR THEREAFTER EFFECTIVE ON JANUARY 1, 2014, THROUGH17

REVENUE REGULATIONS ISSUED BY THE SECRETARY OF FINANCE.18

FERMENTED LIQUORS INTRODUCED IN THE DOMESTIC MARKET19

AFTER THE EFFECTIVITY OF THIS ACT SHALL BE INITIALLY TAX20

CLASSIFIED ACCORDING TO THEIR SUGGESTED NET RETAIL PRICES.21


defined above, of] locally manufactured or imported fermented liquor are intended by the23


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Revenue shall validate the suggested net retail price of the [new brand] NEWLY3

INTRODUCED FERMENTED LIQUORagainst the net retail price as defined herein4

and INITIALLY determine the correct tax bracket to which a [particular new brand of]5

NEWLY INTRODUCED fermented liquor, as defined above, shall be classified. After6

the end ofNINE (9) [eighteen (18)] months from such validation, the Bureau of Internal7

Revenue shall revalidate the initially validated net retail price against the net retail price8

as of the time of revalidation in order to finally determine the correct tax bracket which a9

[particular new brand of] NEWLY INTRODUCED fermented liquor[s] shall be10

classified.[: Provided, however, That brands of fermented liquors introduced in the11

domestic market between January 1, 1997 and December 31, 2003 shall remain in the12

classification under which the Bureau of Internal Revenue has determined them to belong13

as of December 31, 2003. Such classification of new brands and brands introduced14

between January 1, 1997 and December 31, 2003 shall not be revised except by an act of15

Congress.]16


price survey to be conducted by the Bureau of Internal Revenue itself, or the National18


mean the price at which the fermented liquor is sold on retail in at least FIVE (5) [twenty20

(20)] major supermarkets in Metro Manila (for brands of fermented liquor marketed21

nationally), excluding the amount intended to cover the applicable excise tax and the22

value-added tax. For brands which are marketed outside Metro Manila, the net retail23

price shall mean the price at which the fermented liquor is sold in at least five (5) major24

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supermarkets in the region excluding the amount intended to cover the applicable excise1

tax and the value-added tax.2









CASE A PARTICULAR FERMENTED LIQUOR IS NOT SOLD IN MAJOR11


OUTLETS WHERE SAID FERMENTED LIQUOR IS SOLD IN METRO13

MANILA OR THE REGION, AS THE CASE MAYBE, UPON THE14

DETERMINATION OF THE COMMISSIONER OF INTERNAL REVENUE.15



OATH.18





8240.23

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UNDERSTATEMENT OF THE SUGGESTED NET RETAIL PRICE BY AS1

MUCH AS FIFTEEN PERCENT (15%) OF THE ACTUAL NET RETAIL PRICE2





[The classification of each brand of fermented liquor based on its average net retail7

price as of October 1, 1996, as set forth in Annex C, including the classification of8

brands for the same products which, although not set forth in said Annex C, were9

registered and were being commercially produced and marketed on or after October 1,10

1996, and which continue to be commercially produced and marketed after the effectivity11

of this Act, shall remain in force until revised by Congress. ]12



Any downward reclassification of present categories, for tax purposes, [of existing15

brands] of fermented liquorS duly registered at the time of the effectivity of this Act16

which will reduce the tax imposed herein, or the payment thereof, shall be prohibited.17

THE PROPER TAX CLASSIFICATION OF FERMENTED LIQUORS,18

WHETHER REGISTERED BEFORE OR AFTER THE EFFECTIVITY OF THIS19

ACT, SHALL BE DETERMINED EVERY TWO (2) YEARS FROM THE DATE20

OF EFFECTIVITY OF THIS ACT.21

ALL FERMENTED LIQUORS EXISTING IN THE MARKET AT THE22

TIME OF THE EFFECTIVITY OF THIS ACT SHALL BE CLASSIFIED23

ACCORDING TO THE NET RETAIL PRICES AND THE TAX RATES24

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PROVIDED ABOVE BASED ON THE LATEST PRICE SURVEY OF THE1

FERMENTED LIQUORS CONDUCTED BY THE BUREAU OF INTERNAL2

REVENUE.3





8240.8

Every brewer or importer of fermented liquor shall, within thirty (30) days from9

the effectivity of this Act, and within the first five (5) days of every month thereafter,10

submit to the Commissioner a sworn statement of the volume of sales for each particular11

brand of fermented liquor sold at his establishment for the three-month period12


Any brewer or importer who, in violation of this Section, [knowingly] misdeclares14

or misrepresents in his or its sworn statement herein required any pertinent data or15

information shall, UPON FINAL FINDINGS BY THE COMMISSIONER THAT16

THE VIOLATION WAS COMMITTED, be penalized by a summary cancellation or17

withdrawal of his or its permit to engage in business as brewer or importer of fermented18

liquor.19






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SEC. 144. Tobacco Products. There shall be collected [a] AN EXCISE7

tax of [One peso (P1.00)] ONE PESO AND SEVENTY-FIVE CENTAVOS (P1.75)8

EFFECTIVE ON JANUARY 1, 2013 on each kilogram of the following products of9

tobacco:10

(a) Tobacco twisted by hand or reduced into a condition to be consumed in any11

manner other than the ordinary mode of drying and curing;12

(b) Tobacco prepared or partially prepared with or without the use of any machine13

or instruments or without being pressed or sweetened except as otherwise provided14

hereunder; and15

(c) Fine-cut shorts and refuse, scraps, clippings, cuttings, stems and sweepings of16

tobacco except as otherwise provided hereunder.17

Stemmed leaf tobacco, tobacco prepared or partially prepared with or without the18

use of any machine or instrument or without being pressed or sweetened, fine-cut shorts19

and refuse, scraps, clippings, cuttings, stems, midribs, and sweepings of tobacco resulting20

from the handling or stripping of whole leaf tobacco shall be transferred, disposed of, or21

otherwise sold, without any prepayment of the excise tax herein provided for, if the same22

are to be exported or to be used in the manufacture of cigars, cigarettes, or other tobacco23

products on which the excise tax will eventually be paid on the finished product, under24

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such conditions as may be prescribed in the rules and regulations promulgated by the1

Secretary of Finance, upon recommendation of the Commissioner.2

On tobacco specially prepared for chewing so as to be unsuitable for use in any3

other manner, on each kilogram, [Seventy-nine centavos (P0.79)] ONE PESO AND4

FIFTY CENTAVOS (P1.50) EFFECTIVE ON JANUARY 1, 2013.5

[The rates of tax imposed under this Section shall be increased by six percent (6%)6

every two years starting on January 1, 2007 until January 1, 2011.]7



EFFECTIVE ON JANUARY 1, 2014 , THROUGH REVENUE REGULATIONS10


NO TOBACCO PRODUCTS MANUFACTURED IN THE PHILIPPINES12

AND PRODUCED FOR EXPORT SHALL BE REMOVED FROM THEIR13

PLACE OF MANUFACTURE OR EXPORTED WITHOUT POSTING OF AN14

EXPORT BOND EQUIVALENT TO THE AMOUNT OF THE EXCISE TAX15

DUE THEREON IF SOLD DOMESTICALLY; PROVIDED, HOWEVER,16

THAT TOBACCO PRODUCTS FOR EXPORT MAY BE TRANSFERRED17

FROM THE PLACE OF MANUFACTURE TO A BONDED FACILITY,18

UPON POSTING OF A TRANSFER BOND, PRIOR TO EXPORT.19

TOBACCO PRODUCTS IMPORTED INTO THE PHILIPPINES AND20

DESTINED FOR FOREIGN COUNTRIES SHALL NOT BE ALLOWED ENTRY21

WITHOUT POSTING A BOND EQUIVALENT TO THE AMOUNT OF22

CUSTOMS DUTY, EXCISE AND VALUE-ADDED TAXES DUE THEREON IF23

SOLD DOMESTICALLY.24

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Manufacturers and importers of tobacco products shall, within thirty (30) days1

from the effectivity of this Act, and within the first five (5) days of every month2

thereafter, submit to the Commissioner a sworn statement of the volume of sales for each3

particular brand of tobacco products sold [at their establishment] for the three-month4

period immediately preceding.5




COMMISSIONER THAT THE VIOLATION WAS COMMITTED, be penalized by9


manufacturer or importer of cigars or cigarettes.11












SEC. 145. Cigars and Cigarettes. 23

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EFFECTIVE ON JANUARY 1, 2014, FIFTEEN PESOS (P15.00) PER1

PACK;2

EFFECTIVE ON JANUARY 1, 2015, EIGHTEEN PESOS (P18.00) PER3

PACK;4

EFFECTIVE ON JANUARY 1, 2016, TWENTY-ONE PESOS (P21.00) PER5

PACK; AND6

EFFECTIVE ON JANUARY 1, 2017, THIRTY PESOS (P30.00) PER7

PACK.8

THE RATES OF TAX IMPOSED UNDER THIS SUBSECTION SHALL BE9

INCREASED BY FOUR PERCENT (4%) EVERY YEAR EFFECTIVE ON10

JANUARY 1, 2018, THROUGH REVENUE REGULATIONS ISSUED BY THE11

SECRETARY OF FINANCE.12

[Effective on January 1, 2005, Two pesos (P2.00) per pack; ]13

[Effective on January 1, 2007, Two pesos and twenty-three centavos (P2.23) per14

pack;]15

[Effective on January 1, 2009, Two pesos and forty-seven centavos (P2.47) per16

pack; and ]17

[Effective on January 1, 2011, Two pesos and seventy-two centavos (P2.72) per18

pack.]19

Duly registered [or existing brands of] cigarettes [or new brands thereof] packed by20

hand shall only be packed in [thirties] TWENTIES AND OTHER PACKAGING21

COMBINATIONS OF NOT MORE THAN TWENTY.22

CIGARETTES PACKED BY HAND SHALL REFER TO THE MANNER23

OF PACKAGING OF CIGARETTE STICKS USING AN INDIVIDUAL24

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PERSONS HANDS AND NOT THROUGH ANY OTHER MEANS SUCH AS A1

MECHANICAL DEVICE, MACHINE OR EQUIPMENT.2

(C)Cigarettes Packed by Machine. There shall be levied, assessed and collected3

on cigarettes packed by machine a tax at the rates prescribed below:4

[(1) If the net retail price (excluding the excise tax and the value-added tax) is5

below Five pesos (P5.00) per pack, the tax shall be: ]6

[Effective on January 1, 2005, Two pesos (P2.00) per pack;]7

[Effective on January 1, 2007, Two pesos and twenty-three centavos (P2.23) per8

pack; ]9

[Effective on January 1, 2009, Two pesos and forty-seven centavos (P2.47) per10

pack; and ]11

[Effective on January 1, 2011, Two pesos and seventy-two centavos (P2.72) per12

pack.]13

[(2) If the net retail price (excluding the excise tax and the value-added tax) is Five14

pesos (P5.00) but does not exceed Six pesos and fifty centavos (P6.50) per pack, the tax15

shall be: ]16

[Effective on January 1, 2005, Six pesos and thirty-five centavos (P6.35) per pack;]17

[Effective on January 1, 2007, Six pesos and seventy-four centavos (P6.74) per18

pack;]19

[Effective on January 1, 2009, Seven pesos and fourteen centavos (P7.14) per pack;20

and]21

[Effective on January 1, 2011, Seven pesos and fifty-six centavos (P7.56) per22

pack.]23

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[(3) If the net retail price (excluding the excise tax and the value-added tax)1

exceeds Six pesos and fifty centavos (P6.50) but does not exceed Ten pesos (P10.00) per2

pack, the tax shall be: ]3

[Effective on January 1, 2005, Ten pesos and thirty-five centavos (P10.35) per4

pack; ]5

[Effective on January 1, 2007, Ten pesos and eighty-eight centavos (P10.88) per6

pack; ]7

[Effective on January 1, 2009, Eleven pesos and forty-three centavos (P11.43) per8

pack; and ]9

[Effective on January 1, 2011, Twelve pesos (P12.00) per pack. ]10

[(4) If the net retail price (excluding the excise tax and the value-added tax) is11

above Ten pesos (P10.00) per pack, the tax shall be: ]12

[Effective on January 1, 2005, Twenty-five pesos (P25.00) per pack; ]13

[Effective on January 1, 2007, Twenty-six pesos and six centavos (P26.06) per14

pack; ]15

[Effective on January 1, 2009, Twenty-seven pesos and sixteen centavos (P27.16)16

per pack; and ]17

[Effective on January 1, 2011, Twenty-eight pesos and thirty centavos (P28.30) per18

pack.]19

[Variants of existing brands and variants of new brands of cigarettes which are20

introduced in the domestic market after the effectivity of this Act shall be taxed under the21

proper classification thereof based on their suggested net retail price: Provided, however,22

That such classification shall not, in any case, be lower than the highest classification of23

any variant of that brand.]24

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(P11.50) AND BELOW PER PACK, THE TAX SHALL BE TWENTY-ONE PESOS1

(P21.00) PER PACK; AND2

(2) IF THE NET RETAIL PRICE (EXCLUDING THE EXCISE TAX AND3

THE VALUE-ADDED TAX) IS MORE THAN ELEVEN PESOS AND FIFTY4

CENTAVOS (P11.50) PER PACK, THE TAX SHALL BE TWENTY-EIGHT5

PESOS (P28.00) PER PACK.6



THE VALUE-ADDED TAX) IS ELEVEN PESOS AND FIFTY CENTAVOS9

(P11.50) AND BELOW PER PACK, THE TAX SHALL BE TWENTY-FIVE10

PESOS (P25.00) PER PACK; AND11


THE VALUE-ADDED TAX) IS MORE THAN ELEVEN PESOS AND FIFTY13

CENTAVOS (P11.50) PER PACK, THE TAX SHALL BE TWENTY-NINE PESOS14

(P29.00) PER PACK.15

EFFECTIVE ON JANUARY 1, 2017, THE TAX ON ALL CIGARETTES16

PACKED BY MACHINE SHALL BE THIRTY PESOS (P30.00) PER PACK.17

THE RATES OF TAX IMPOSED UNDER THIS SUBSECTION SHALL18

BE INCREASED BY FOUR PERCENT (4%) EVERY YEAR THEREAFTER19



Duly registered [or existing brands of] cigarettes [or new brands thereof] packed by22

machine shall only be packed in twenties AND OTHER PACKAGING23

COMBINATIONS OF NOT MORE THAN TWENTY.24

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brands of cigars and cigarettes duly registered at the time of the effectivity of this Act2

which will reduce the tax imposed herein, or the payment thereof, shall be prohibited. ]3


classified according to their suggested net retail price.]5

UNDERSTATEMENT OF THE SUGGESTED NET RETAIL PRICE BY AS6

MUCH AS FIFTEEN PERCENT (15%) OF THE ACTUAL NET RETAIL PRICE7






No. 8240.]13

CIGARETTES INTRODUCED IN THE DOMESTIC MARKET AFTER14

THE EFFECTIVITY OF THIS ACT SHALL BE INITIALLY TAX CLASSIFIED15

ACCORDING TO THEIR SUGGESTED NET RETAIL PRICES.16


defined above, of] locally manufactured or imported cigarettes are intended by the18




Revenue shall validate the suggested net retail price of the [new brand] NEWLY22

INTRODUCED CIGARETTE against the net retail price as defined herein and23

INITIALLY determine the correct tax bracket under which a [particular new brand of]24

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NEWLY INTRODUCED cigarette[, as defined above,] shall be classified. After the1

end of NINE (9) [eighteen (18)] months from such validation, the Bureau of Internal2

Revenue shall revalidate the initially validated net retail price against the net retail price3

as of the time of revalidation in order to finally determine the correct tax bracket under4

which a [particular new brand of] NEWLY INTRODUCED cigarette[s] shall be5

classified.[: Provided, however, That brands of cigarettes introduced in the domestic6

market between January 1, 1997 and December 31, 2003 shall remain in the classification7

under which the Bureau of Internal Revenue has determined them to belong as of8

December 31, 2003. Such classification of new brands and brands introduced between9

January 1, 1997 and December 31, 2003 shall not be revised except by an act of10

Congress.]11


price survey to be conducted by the Bureau of Internal Revenue itself, or the National13


mean the price at which the cigarette is sold on retail in at least FIVE (5) [twenty (20)]15

major supermarkets in Metro Manila (for brands of cigarettes marketed nationally),16

excluding the amount intended to cover the applicable excise tax and the value-added17

tax. For [brands] CIGARETTES which are marketed only outside Metro Manila, the18

net retail price shall mean the price at which the cigarette is sold in at least five (5)19

major supermarkets in the region excluding the amount intended to cover the applicable20

excise tax and the value-added tax.21




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OTHERS OF A SIMILAR NATURE: PROVIDED, THAT NO TWO (2)3



CASE A PARTICULAR CIGARETTE IS NOT SOLD IN MAJOR6


OUTLETS WHERE SAID CIGARETTE IS SOLD IN METRO MANILA OR8

THE REGION, AS THE CASE MAYBE, UPON THE DETERMINATION OF9

THE COMMISSIONER OF INTERNAL REVENUE.10



OATH.13





8240.18

[The classification of each brand of cigarettes based on its average net retail price19

as of October 1, 1996, as set forth in Annex D, including the classification of brands for20

the same products which, although not set forth in said Annex D, were registered and21

were being commercially produced and marketed on or after October 1, 1996, and which22

continue to be commercially produced and marketed after the effectivity of this Act, shall23

remain in force until revised by Congress.]24

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THE PROPER TAX CLASSIFICATION OF CIGARETTES, WHETHER1

REGISTERED BEFORE OR AFTER THE EFFECTIVITY OF THIS ACT,2

SHALL BE DETERMINED EVERY TWO YEARS FROM THE DATE OF3

EFFECTIVITY OF THIS ACT.4

ALL CIGARETTES EXISTING IN THE MARKET AT THE TIME OF THE5

EFFECTIVITY OF THIS ACT SHALL BE CLASSIFIED ACCORDING TO THE6

NET RETAIL PRICES AND THE TAX RATES PROVIDED ABOVE BASED ON7

THE LATEST PRICE SURVEY OF CIGARETTES CONDUCTED BY THE8

BUREAU OF INTERNAL REVENUE.9





8240.14

NO TOBACCO PRODUCTS MANUFACTURED IN THE PHILIPPINES15

AND PRODUCED FOR EXPORT SHALL BE REMOVED FROM THEIR16

PLACE OF MANUFACTURE OR EXPORTED WITHOUT POSTING OF AN17

EXPORT BOND EQUIVALENT TO THE AMOUNT OF THE EXCISE TAX18

DUE THEREON IF SOLD DOMESTICALLY: PROVIDED, HOWEVER,19

THAT TOBACCO PRODUCTS FOR EXPORT MAY BE TRANSFERRED20

FROM THE PLACE OF MANUFACTURE TO A BONDED FACILITY,21

UPON POSTING OF A TRANSFER BOND, PRIOR TO EXPORT.22

TOBACCO PRODUCTS IMPORTED INTO THE PHILIPPINES AND23

DESTINED FOR FOREIGN COUNTRIES SHALL NOT BE ALLOWED ENTRY24

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WITHOUT POSTING A BOND EQUIVALENT TO THE AMOUNT OF1

CUSTOMS DUTY, EXCISE AND VALUE-ADDED TAXES DUE THEREON IF2

SOLD DOMESTICALLY.3

OF THE TOTAL VOLUME OF CIGARETTES SOLD IN THE COUNTRY,4

ANY MANUFACTURER AND/OR SELLER OF TOBACCO PRODUCTS MUST5

PROCURE AT LEAST FIFTEEN PERCENT (15%) OF ITS TOBACCO LEAF6

RAW MATERIAL REQUIREMENTS FROM LOCALLY GROWN SOURCES,7

SUBJECT TO ADJUSTMENTS BASED ON INTERNATIONAL TREATY8

COMMITMENTS.9

Manufacturers and importers of cigars and cigarettes shall, within thirty (30) days10

from the effectivity of this Act and within the first five (5) days of every month thereafter,11

submit to the Commissioner a sworn statement of the volume of sales for [each particular12

brand of] cigars and/or cigarettes sold [at his establishment] for the three-month period13





COMMISSIONER THAT THE VIOLATION WAS COMMITTED, be penalized by18


manufacturer or importer of cigars or cigarettes.20


in violation of this Section shall be fined treble the aggregate amount of deficiency taxes,22

surcharges and interest which may be assessed pursuant to this Section.23

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SEC. 6. Section 8 of Republic Act No. 8424 or the National Internal Revenue Code, as7

amended, is hereby further amended to read as follows8

SEC. 8. Duty of the Commissioner to Ensure the Provision and Distribution9

of Forms, Receipts, Certificates, and Appliances, and the Acknowledgment of10

Payment of Taxes. (A) Provision and Distribution to Proper Officials. ANY LAW11

TO THE CONTRARY NOTWITHSTANDING, [I]it shall be the duty of the12

Commissioner, among other things, to prescribe, provide, and distribute to the proper13

officials the requisite licenses[,]; internal revenue stamps[,]; UNIQUE, SECURE14

AND NON-REMOVABLE IDENTIFICATION MARKINGS (HEREAFTER15

CALLED UNIQUE IDENTIFICATION MARKINGS), SUCH AS CODES OR16

STAMPS, BE AFFIXED TO OR FORM PART OF ALL UNIT PACKETS AND17

PACKAGES AND ANY OUTSIDE PACKAGING OF CIGARETTES AND18

BOTTLES OF DISTILLED SPIRITS; labels and other forms[,]; certificates[,];19

bonds[,]; records[,]; invoices[,]; books[,]; receipts[,]; instruments[,]; appliances and20

apparatus used in administering the laws falling within the jurisdiction of the Bureau .21

For this purpose, internal revenue stamps, OR OTHER MARKINGS [strip stamps]22

and labels shall be caused by the Commissioner to be printed with adequate security23

features.24

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Internal revenue stamps, whether of a bar code or fuson design, OR OTHER1

MARKINGS shall be firmly and conspicuously affixed OR PRINTED on each pack2

of cigars and cigarettes AND BOTTLES OF DISTILLED SPIRITS subject to3

excise tax in the manner and form as prescribed by the Commissioner, upon approval4

of the Secretary of Finance.5

TO FURTHER IMPROVE TAX ADMINISTRATION, CIGARETTE6

AND ALCOHOL MANUFACTURERS SHALL BE REQUIRED TO INSTALL7

AUTOMATED VOLUME-COUNTERS OF PACKS AND BOTTLES TO8

DETER OVER-REMOVALS AND MISDECLARATION OF REMOVALS.9

SEC. 7. Section 131, Subsection A of the National Internal Revenue Code of 1997, as10

amended by Republic Act No. 9334, is hereby further amended as follows:11

SEC. 131. Payment of Excise Taxes on Imported Articles. 12

x x x13

The provision of any special or general law to the contrary notwithstanding, the14

importation of cigars and cigarettes distilled spirits, fermented liquors and wines into the15

Philippines, even if destined for tax and duty-free shops, shall be subject to all applicable16

taxes, duties, charges, including excise taxes due thereon. This shall apply to cigars and17

cigarettes, distilled spirits, fermented liquors and wines brought directly into the duly18

chartered or legislated freeports of the Subic Special Economic and Freeport Zone,19

created under Republic Act No. 7227; the Cagayan Special Economic Zone and Freeport,20

created under Republic Act No. 7922; and the Zamboanga City Special Economic Zone,21

created under Republic Act No. 7903, and such other freeports as may hereafter be22

established or created by law: Provided, further, That NOTWITHSTANDING THE23

PROVISIONS OF REPUBLIC ACT NOS. 9400 AND 9593, importations of cigars24

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and cigarettes, distilled spirits, fermented liquors and wines made directly by a1

government-owned and operated duty-free shop, like the Duty-Free Philippines (DFP),2

shall be exempted from all applicable duties only: x x x3

x x x4

Articles confiscated shall be DESTROYED USING THE MOST5

ENVIRONMENTALLY FRIENDLY METHOD AVAILABLE [disposed of] in6

accordance with the rules and regulations to be promulgated by the Secretary of Finance,7

upon recommendation of the Commissioners of Customs and Internal Revenue. [, upon8

consultation with the Secretary of Tourism and the General Manager of the Philippine9

Tourism Authority.]10

x x x11

SEC. 8. Section 288, subsections (B) and (C) of the National Internal Revenue Code of 1997,12

as amended by Republic Act No. 9334, is hereby further amended to read as follows:13

(B) Incremental Revenues from Republic Act No. 8240. Fifteen percent14

(15%) of the incremental revenue collected from the excise tax on tobacco products under15

R. A. No. 8240 shall be allocated and divided among the provinces producing burley and16

native tobacco in accordance with the volume of tobacco leaf production. The fund shall17

be exclusively utilized for programs [in pursuit of the following objectives] TO18

PROMOTE ECONOMICALLY VIABLE ALTERNATIVES FOR TOBACCO19

FARMERS AND WORKERS SUCH AS:20

(1) PROGRAMS THAT WILL PROVIDE INPUTS, TRAINING, AND21

OTHER SUPPORT FOR TOBACCO FARMERS WHO SHIFT TO22

PRODUCTION OF AGRICULTURAL PRODUCTS OTHER THAN TOBACCO23

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INCLUDING, BUT NOT LIMITED TO, HIGH-VALUE CROPS, SPICES, RICE,1

CORN, SUGARCANE, COCONUT, LIVESTOCK AND FISHERIES;2

(2) PROGRAMS THAT WILL PROVIDE FINANCIAL SUPPORT FOR3

TOBACCO FARMERS WHO ARE DISPLACED OR WHO CEASE TO4

PRODUCE TOBACCO;5

(3) COOPERATIVE PROGRAMS TO ASSIST TOBACCO FARMERS IN6

PLANTING ALTERNATIVE CROPS OR IMPLEMENTING OTHER7

LIVELIHOOD PROJECTS;8

(4) LIVELIHOOD PROGRAMS AND PROJECTS THAT WILL9

PROMOTE, ENHANCE, AND DEVELOP THE TOURISM POTENTIAL OF10

TOBACCO-GROWING PROVINCES;11

(5) INFRASTRUCTURE PROJECTS SUCH AS FARM TO MARKET12

ROADS, SCHOOLS, HOSPITALS, AND RURAL HEALTH FACILITIES; AND13

[(1) Cooperative projects that will enhance better quality of agricultural products14

and increase income and productivity of farmers; ]15

[(2) Livelihood projects, particularly the development of alternative farming16

system to enhance farmers income; and ]17

[(3)](6) Agro-industrial projects that will enable tobacco farmers to be involved18

in the management and subsequent ownership of projects, such as post-harvest and19

secondary processing like cigarette manufacturing and by-product utilization.20

The Department of Budget and Management, in consultation with the [Oversight21

Committee created under said R. A. No. 8240] DEPARTMENT OF22

AGRICULTURE, shall issue [the corresponding] rules and regulations governing the23

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allocation and disbursement of this fund, NOT LATER THAN ONE HUNDRED1

EIGHTY (180) DAYS FROM THE EFFECTIVITY OF THIS ACT.2

(C)Incremental Revenues from the Excise Tax on Alcohol and Tobacco Products. 3

[(1) Two and a half percent (2.5%) of the incremental revenue from the excise tax4

on alcohol and tobacco products starting January 2005 shall be remitted directly to the5

Philippine Health Insurance Corporation for the purpose of meeting and sustaining the6

goal of universal coverage of the National Health Insurance Program; and ]7

[(2) Two and a half percent (2.5%) of the incremental revenue from the excise tax8

on alcohol and tobacco products starting January 2005 shall be credited to the account of9

the Department of Health and constituted as a trust fund for its disease prevention10

program. ]11

[The earmarking provided under this provision shall be observed for five (5) years12

starting from January 2005.]13

AFTER DEDUCTING THE ALLOCATIONS UNDER REPUBLIC ACT14

NOS. 7171 AND 8240, EIGHTY PERCENT (80%) OF THE REMAINING15

BALANCE OF THE INCREMENTAL REVENUE DERIVED FROM THIS ACT16

SHALL BE ALLOCATED FOR THE UNIVERSAL HEALTH CARE UNDER17

THE NATIONAL HEALTH INSURANCE PROGRAM, THE ATTAINMENT OF18

THE MILLENIUM DEVELOPMENT GOALS AND HEALTH AWARENESS19

PROGRAMS; AND TWENTY PERCENT (20%) SHALL BE ALLOCATED20

NATIONWIDE, BASED ON POLITICAL AND DISTRICT SUBDIVISIONS, FOR21

MEDICAL ASSISTANCE AND HEALTH ENHANCEMENT FACILITIES22

PROGRAM, THE ANNUAL REQUIREMENTS OF WHICH SHALL BE23

DETERMINED BY THE DEPARTMENT OF HEALTH (DOH).24

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SEC. 9. Transitory Provision. - A special financial support for displaced workers in the1

alcohol and tobacco industries shall be allocated and included in the appropriations under the2

Department of Labor and Employment (DOLE) to finance unemployment alleviation program;3

and to the Technical, Education and Skills Development Authority (TESDA) to finance the4

training and retooling programs of displaced workers, to be included in the General5

Appropriations Acts for the Fiscal Years 2014 to 2017.6

SEC. 10. Annual Report. The Department of Budget and Management (DBM), the7

Department of Agriculture (DA), the Department of Health (DOH) and the Philippine Health8

Insurance Corporation (PhilHealth) shall each submit to the Oversight Committee, created under9

Republic Act No. 8240, a detailed report on the expenditure of the amounts earmarked in this10

Section on the first week of August of every year. The reports shall be simultaneously published11

in the Official Gazette and in the agencies websites.12

SEC. 11. Congressional Oversight Committee. The composition of the Congressional13

Oversight Committee, created under Republic Act No. 8240, shall include the Agriculture and Health14

Committee Chairpersons of the Senate and the House of Representatives as part of the four (4)15

members to be appointed from each House.16

Upon receipt of the annual reports from the DBM, DA, DOH, DOLE, PhilHealth and TESDA, the17

Committee shall review and ensure the proper implementation of this Act as regards the expenditures of18

the earmarked funds.19

Starting the third quarter of Calendar Year 2016, the Committee is mandated to review the20

impact of the tax rates provided under this Act.21

SEC. 12. Implementing Rules and Regulations. The Secretary of Finance shall, upon the22

recommendation of the Commissioner of Internal Revenue, and in consultation with the Department of23

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Health, promulgate the necessary rules and regulations for the effective implementation of this Act not1

later than one hundred eighty (180) days upon the effectivity of this Act.2

SEC. 13. Separability Clause. If any of the provisions of this Act is declared invalid by a3

competent court, the remainder of this Act or any provision not affected by such declaration of4

invalidity shall remain in force and effect.5

SEC. 14. Repealing Clause. All laws, decrees, ordinances, rules and regulations, executive or6

administrative orders and such other presidential issuances that are inconsistent with any of the7

provisions of this Act are hereby repealed, amended or otherwise modified accordingly.8

SEC. 15. Effectivity. This Act shall take effect upon its publication in a newspaper of general9

circulation.10

Approved,

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