Implementing Rules and Regulations IRR on the Sin Tax law REVENUE REGULATIONS NO. 17-2012 Part 3

Implementing Rules and Regulations IRR on the Sin Tax law REVENUE REGULATIONS NO. 17-2012 Part 3

SEC. 4. TAX CLASSIFICATION OF ALCOHOL AND TOBACCO PRODUCTS. –

Any alcohol or tobacco product that is introduced in the domestic market on or after the effectivity of this Act shall be initially tax classified according to their suggested net retail prices as declared in the prescribed manufacturer's or importer's sworn statement, subject to the initial validation and revalidation requirements prescribed under Revenue Regulations No. 3-2006, as amended by Section 6 of these Regulations.

In case of an alcohol and or tobacco product that was duly registered with the BIR before the effectivity of the Act but was not tax classified by the BIR according to the new tax rates provided under the Act, such product shall be treated as a newly introduced product upon re-introduction thereof in the domestic market after the effectivity of the Act. Accordingly, the tax classification thereof shall be based on the suggested net retail price declared in the aforesaid sworn statement, subject to the initial validation and revalidation requirements.

The proper tax classification of all fermented liquors and tobacco products, whether registered before or after the effectivity of the Act, shall be determined every two (2) years from the date of effectivity of the Act.

For purposes of tax classification, alcohol or tobacco products, whether imported or domestically manufactured, shall be taxed according to their individual brand name (whether or not with prefix or suffix), color and/or design of label (such as logo, font, picturegram, and the like), manner and/or form of packaging or size of container of the product. Accordingly, the following instances, but not limited to, shall be taxed differently:

(a)    Two products bearing exactly the same root name but with different suffixes or prefixes

(b)   Two products bearing exactly the same brand name but with different colors and/or design of labels

(c)  Two products bearing exactly the same brand name and label but with
different forms of packaging (e.g., soft packs and hard packs for cigarettes,
or in bottles, cans or kegs for alcohol products)

(d) Two products bearing exactly the same brand name and label but with
different sizes of container (e.g., one liter, 500 ml., 330 ml., etc., for alcohol
products)

(e) One product is sold in a regular basis while the other product is introduced in a limited basis such as a special edition, for specific occasion and other similar instances

Implementing Rules and Regulations IRR on the Sin Tax law REVENUE REGULATIONS NO. 17-2012 Part 3