This document provides information on excise taxes in the Philippines, including: - Excise taxes are imposed on goods like alcohol, tobacco, heated tobacco, cigars, cigarettes, nicotine, sweetened beverages, and non-essential goods. - Excise taxes can be specific taxes based on weight/volume or ad valorem taxes based on selling price. - Manufacturers, importers, and possessors of goods are generally liable for excise taxes, which must be paid before removal from production facilities or release from customs. - Excise tax rates and computations are provided for different goods like distilled spirits, wines, fermented liquor, and ethanol. Formulas to calculate specific

1. PRACTICAL
COMPUTATION
BASIC CONCEPT OF EXCISE TAX

2. EXCISE TAX ON:
- ALCOHOL
- TOBACCO PRODUCTS
- HEATED TOBACCO
- CIGARS AND CIGARETTES
- NICOTINE
- SWEETENED BEVERAGES
- NON ESSENTIAL GOODS
- VAT EXEMPT IMPORTATION

3. BASIC CONCEPT OF EXCISE TAX
Excise Tax is a tax on the production, sale or consumption of a
commodity in a country.
APPLICABILITY:
On goods manufactured or produced in the Philippines for
domestic sale or consumption or for any other disposition;
and
On goods imported.

4. TYPES OF EXCISE TAXES:
Specific Tax – refers to the excise tax imposed
which is based on weight or volume capacity or
any other physical unit of measurement
Ad Valorem Tax – refers to the excise tax which
is based on selling price or other specified value of
the goods/articles

5. MANNER OF COMPUTATION:
Specific Tax = No. of Units/other measurements X
Specific Tax Rate
Ad Valorem Tax = No. of Units/other measurements X
Selling Price of any specific value per unit X Ad Valorem Tax
Rate

6. PERSONS LIABLE TO EXCISE TAX:
In General:
a. On Domestic or Local Articles
Manufacturer
Producer
Owner or person having possession of articles removed from the place of
production without the payment of the tax
b. On Imported Articles
Importer
Owner
Person who is found in possession of articles which are exempt from excise
taxes other than those legally entitled to exemption

7. TIME OF PAYMENT:
a. On domestic products
• Before removal from the place of production
b. On imported products
• Before release from the customs’ custody

8. GOVERNING LAW/ISSUANCE
MISTG Memo 1-2021
R.A. 11467 – approved on July 22, 2020
AN ACT AMENDING SECTIONS 109, 141, 142, 143, 144, 147, 152, 263,
263-A, 265, AND 288-A, AND ADDING A NEW SECTION 290-A TO
REPUBLIC ACT NO. 8424, AS AMENDED, OTHERWISE KNOWN AS THE
NATIONAL INTERNAL REVENUE CODE OF 1997, AND FOR OTHER
PURPOSES
- Distilled Spirits
- Wines
- Fermented Liquor
- Tobacco Products

9. GOVERNING LAW/ISSUANCE
MISTG Memo 1-2021
R.A. 11467 – approved on July 22, 2020
AN ACT AMENDING SECTIONS 109, 141, 142, 143, 144, 147, 152, 263,
263-A, 265, AND 288-A, AND ADDING A NEW SECTION 290-A TO
REPUBLIC ACT NO. 8424, AS AMENDED, OTHERWISE KNOWN AS THE
NATIONAL INTERNAL REVENUE CODE OF 1997, AND FOR OTHER
PURPOSES
- Distilled Spirits
- Wines
- Fermented Liquor
- Tobacco Products

10. AVTR STR
• DISTILLED SPIRITS 22% P 66.00
• TYPES OF DISTILLED SPIRITS:
– BRANDY
– RHUM
– GIN
– VODKA
– WHISKY
– FORTIFIED WINES
2024 EXCISE TAX RATES:
DISTILLED SPIRITS

11.  DATA NEEDED
 NUMBER OF BOTTLES (NOB)
 VOLUME CAPACITY (VC)
 ALCOHOL CONTENT
 Net Retail Price
 STANDARD RATE
 22% AVTR
 P 66.00 STR
KEY NOTES FOR COMPUTATION
OF
DISTILLED SPIRITS:

12. FORMULA FOR DISTILLED
SPIRITS:
Gauge liter (GL) = No. of drum/bottles x liters per bottle or drum
= Cases x bottles x Liters per bottle
Proof (PF) = alcohol content x 2
= % proof /.01
% Proof (%PF) = Alcohol content x .02
= Proof x .01
Alcohol content = PF / 2
= % PF / .02
Proof liter = Total GL x %PF
= Total GL x (.01 x PF)
= Total GL x (.02 x AC)
1 LITER = 1,000 ml
= 1,000 cc
= 100 cl
= 10 dl
1 HECTO LITER = 100 li
1 DRUM = 200 li

13.  GAUGE LITER?
= 200 x 15 x .25
= 750 ltrs
 % PROOF?
= 40 x.02
= .8
 PROOF LITER?
= 750 ltrs x .8 (
= 600
 GAUGE LITER?
 % PROOF?
 PROOF LITER?
 GAUGE LITER?
 % PROOF?
 PROOF LITER?
Let’s use some examples!
 200 case
 15 btls/ case
 250 ml/btl
 40 AC
 800 case
 5btls/ case
 2 dl/btl
 80 PF
 40 drums
 90 PF
 1 drum = 200 ltrs

14.  NOB?
= (GL) 336/ .42 (vc/btl)
Total NOB = 800
 % PROOF?
= 1.8
 PROOF LITER?
= 604.8
 GAUGE LITER?
 % PROOF?
 PROOF LITER?
 GAUGE LITER?
 % PROOF?
 PROOF LITER?
Let’s use some examples!
 GL –336
 20 cases
 420 ml/btl
 90 AC
 350 case
 10 ltrs/ case
 85 PF
 3 hectoliters
 44 AC

15.  FORMULA 1
PL x (NRP/li x .22 + P 66.00) = ET
 FORMULA 2
PL x P 66.00 = ST
NOB x NRP/B x %PF x .22 = AVT
ST + AVT = ET
 FORMULA 3
VC x %PF x P 66.00 = ST/B
NRP/B x %PF x .22 = AVT/B
ST/B + AVT/B = ET/B
ET/B x NOB = TOTAL ET
FORMULAS FOR DISTILLED
SPIRITS: BRANDY
AC: 40%
NRP/btl: 1200
VC: 250 ml btl
200 cases
NOB: 10 btls/case
NRP/ ltr – 4,800
IF THE FACTOR IS PER 1 liter:
FORMULA: NRP x 1 liter
VC/btl (ltr)

16.  ST?
= (150 x 20 x 1.2 x .9) x 66
= 213,840
 AVT?
= (150 x 20) x 2500 x.9 x .22
= 1,485,000
 ET?
= 191, 160 + 1,485,000
= 1,698,840
* EXCISE TAX
 PL (NRP/ltr x.22 + 59)
 3,240 ( (2500/1.2) x .22 +66)
 1,698,840
 EXCISE TAX?  ST?
 AVT?
 EXCISE TAX?
Let’s use some examples!
 PF: 90
 NRP 2500/btl
 150 cases
 NOB: 20/case
 VC/btl: 1.2 li
 AC: 30%
 NRP: 500
 VC: 250ml/ btl
 400 cases
 NOB: 30 btls/case
 1500 btls
 35 AC
 NRP 750/ btl
 32 cl/btl

17.  RATE:
AVTR: 22% STR: P 66.00
 FORMULA:
 PL x P 59.00 = ST
 DV x %PF x .22 = AVT
 ST + AVT = ET
FORMULA FOR ETHANOL:

18. SPECIFIC TAX
= (27 x 200) x 1.8 x P 66.00
= P 641,520
AVT
= 1,220,000 x 1.8 x .22
= P 483,120
EXCISE TAX
= 573,480 + 483,120
= P 1,124,640
 ST?
 AVT?
 EXCISE TAX?
Let’s use some examples!
ETHYL
AC: 90%
27 drums
DV- P 1,220,000
ETHANOL
PROOF : 160 %
18 hectoliters
DV- P 900,000

19. SPARKLING WINES/CHAMPAGNE:
CARBONATED/STILL WINES:
Beginning January 23, 2020, the classification of wines was removed
pursuant to RA NO. 11467. All types of wines are subject to specific Excise
Tax rates per Liter.
2024 rate : P 63.12

20.  EXCISE TAX?
= GL x P 63.12
= 400 x 10 x .75 x 63.12
= P 189,360
 EXCISE TAX?  EXCISE TAX?
Let’s use some examples!
 Sparkling wines
400 cases
 10 btls/case
 AC: 10%
 VC: 750ml
 500 btls of
champagne
 45 cl/btl
 20 PF
 NRP 420/ btl
 200 cases of
perrier jouet
champagne
 (700 ml)
 15 PF
 15 btls/case

21. FERMENTED LIQUOR
Specific Tax Rate: P 43.00/li
 BASIS: GL
• Beer
• Lager beer
• Ale
• Porter

22.  EXCISE TAX?
= GL x P 41
= 5 x 400 x 30 x .33 x 43
= P 851,400
 EXCISE TAX?  EXCISE TAX?
Let’s use some examples!
 5x20 San Mig
Beer corporation
 VC: 330ml/ can
 400 boxes/
container
 NoC: 30/box
 AC: 5%
 500 btls of Corona
Extra Beer
 45 cl/btl
 20 PF
 NRP 420/ btl
 200 boxes of
Heineken Flavor
Beer in Can (250
ml)
 15 PF
 15 btls/box