Republic of the Philippines BSS
HOUSE OF REPRESENTATIVES !3 RECEIVED 2)

> il?

Quezon Ci © parevAN 2 1 2026 %

Juezon City an

NINETEENTH CONGRESS % ar)
Se)

Third Regular Session
HOUSE BILL NO. 1132 0

Introduced by

Re;

EXPLANATORY NOTE

The World Health Organization (WHO) recognizes alcohol use as one of the
leading causes of death and disease globally. In 2019, around 2.4 million deaths
worldwide were caused by alcohol use. Of those, deaths, nearly 40,000 were Filipinos.

In the Philippines, 47.1% of adults are current alcohol drinkers, according to the
DOST-FNRI National Nutrition Survey. 51.4% of adolescent alcohol users and 54.7% of
adult alcohol users binge drink, a figure which has remained stagnant over the past
decade. Other undesirable consequences of alcohol use include non-communicable
diseases, domestic violence, road traffic crashes, and mental illnesses. Taken
altogether, the burden of alcohol consumption adds up to billions of pesos in direct and
indirect costs such as lost productivity from sickness and premature deaths.

Global evidence shows that alcohol taxes are the most effective measure to
reduce alcohol consumption. Raising prices through higher taxes help delay the initiation
of alcohol use among the youth and re duces heavy episodic drinking.

The proposal for an across-the-board increase in alcohol taxes is expected to
generate at least 106.3 billion in incremental revenue over the next five years.

Increasing taxes on alcoholic beverages is a win-win for Filipinos — to reduce the
burden of the harmful use of alcohol and to address other health, safety, and
‘socioeconomic issues.

In view of the foregoing, the passage of this bill is eamnestly sought.

Representative, Anakalusugan Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
Third Regular Session

House Bitt No. 11320

Introduced by Rep. Ray T. Reyes

AN ACT

INCREASING THE EXCISE TAX ON ALCOHOLIC BEVERAGES, AMENDING
FOR THIS PURPOSE SECTIONS 141 AND 143 OF THE NATIONAL INTERNAL
REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES

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

Congress assembled:

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

hereby further amended to read as follows:

“SEC. 141. Distilled Spirits. — On distilled spirits, subject to the
provisions of Section 133 of this Code, an excise tax shall be levied,
assessed, and collected based on the following schedules:

(A) Effective January 1, 2026

(1) An ad valorem tax equivalent to twenty-two percent (22%) of the net
retail price (excluding the excise tax and the value-added tax) per
proof; and

(2) In addition to the ad valorem tax herein imposed, a specific tax of
Eighty-one pesos (P81.00) per proof liter.

(B) Effective January 1, 2027

(1) An ad valorem tax equivalent to twenty-two percent (22%) of the net
retail price (excluding the excise tax and the value-added tax) per
proof; and

(2) In addition to the ad valorem tax herein imposed, a specific tax of
Ninety-six pesos (P96.00) per proof liter.

(C)Effective January 1, 2028

(1) An ad valorem tax equivalent to twenty-two percent (22%) of the net
retail price (excluding the excise tax and the value-added tax) per
proof, and


(2) In addition to the ad valorem tax herein imposed, a specific tax of
One hundred and eleven pesos (111.00) per proof liter.

(0) Effective January 1, 2029

(1) An ad valorem tax equivalent to twenty-two percent (22%) of the net
retail price (excluding the excise tax and the value-added tax) per
proof, and

(2) In addition to the ad valorem tax herein imposed, the specific tax of
One hundred and twenty-six pesos (P126.00) per proof liter.

(E)In addition to the ad valorem tax herein imposed, the specific tax
imposed under this Section shall be increased by six percent (6%)
every year thereafter, effective January 1, 2030, through revenue
regulations to be issued by the Secretary of Finance.

XK

SECTION 2. Section 143 of the National Internal Revenue Code, as amended, is
hereby further amended to read as follows:

“SEC. 143. PRE-MIXED ALCOHOLIC BEVERAGES AND Fermented
Liquors. — There shall be levied, assessed and collected an excise
tax ON PRE-MIXED ALCOHOLIC BEVERAGES, beer, lager beer, ale,
porter and other fermented liquors regardless if manufactured in
factories or sold and brewed at micro-breweries or small
establishments such as pubs and restaurants, except tuba, basi,
tapuy and similar fermented liquors in accordance with the following
schedule:

“Effective on January 1, 2026 the tax shall be Fifty-two pesos
(P52.00) per liter.

“Effective on January 1, 2027, the tax shall be Fifty-six pesos
(56.00) per liter.

“Effective on January 1, 2028, the tax shall be Sixty pesos
(P60.00) per liter.

“Effective on January 1, 2029, the tax shall be Sixty-four
pesos (P64.00) per liter.

“The rates of tax imposed under this Section shall be
increased by six percent (6%) every year thereafter effective January
4, 2029, through revenue regulations issued by the Secretary of
Finance.

“PRE-MIXED ALCOHOLIC BEVERAGES, SUCH AS BUT NOT LIMITED
TO, “ALCOPOPS”, “ALCOMIXES”, “COOLERS”, “SPIRIT COOLERS”,
“WINE COOLERS”, “CRUISERS”, AND “BREEZERS” SHALL MEAN


FLAVORED BEVERAGES SOLD AS BEING READY TO CONSUME, WITH AN
ALCOHOL CONTENT OF NOT MORE THAN TEN PERCENT (10%) AND MADE
BY COMBINING AN ALCOHOLIC PRODUCT SUCH AS FERMENTED LIQUOR,
DISTILLED SPIRIT, WINE, OR OTHER ALCOHOLIC BEVERAGE WITH NON-
ALCOHOLIC INGREDIENTS, SUCH AS BUT NOT LIMITED TO, FRUIT JUICE,
CREAM, CARBONATED WATER, AND SYRUP. PRE-MIXED ALCOHOLIC
BEVERAGES SHALL BE TAXED AS FERMENTED LIQUOR.

“Every brewer, manufacturer, or importer of PRE-MIXED
ALCOHOLIC BEVERAGES OR fermented liquor, shall, within thirty (30)
days from the effectivity of this Act, and within the first five (5) days of
every month thereafter, submit to the Commissioner a sworn
statement of the volume of sales and removals for each particular
brand of PRE-MIXED ALCOHOLIC BEVERAGES OR fermented liquor sold
at his establishment for the three-month period immediately
preceding.

“Any brewer, manufacturer or importer who, in violation of this
Section misdeclares or misrepresents in his or its sworn statement
herein required any pertinent data or information shall, upon final
findings by the Commissioner that the violation was committed, be
penalized by a summary cancellation or withdrawal of his or its
permit to engage in business as brewer, manufacturer or importer of
PRE-MIXED ALCOHOLIC BEVERAGES OR fermented liquor.

peed

SECTION 3. Implementing Rules and Regulations. — Within ninety (90) days from
the effectivity of this Act, the Department of Finance and the Department of Health
shall issue the rules and regulations for the effective implementation of this Act.

SECTION 4. Separability Clause. — If, for any reason, any provisions of this Act are
declared to be unconstitutional or invalid, the other sections or provisions thereof
which are not affected thereby shall continue to be in full force and effect

SECTION 5. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations, and other issuances or parts thereof which are inconsistent with this Act
are hereby repealed, amended or modified accordingly.

SECTION 6. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,