EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S.B. No. 1074
'(©Cicf ol Uk ssi'iii tflr^
T9 SEP 25 All :30
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(In sub stitu tio n  o f S.B. Nos. 383 and 987 taking into consideration H.B. No. 1026)
Prepared by the Com m ittee on W ays and Means w ith Senators Pacquiao and
Cayetano as authors
AN ACT
INCREASING THE EXCISE TAX ON ALCOHOL PRODUCTS, HEATED TOBACCO 
PRODUCTS AND VAPOR PRODUCTS, AMENDING FOR THIS PURPOSE SECTIONS 
141, 142, 143, 144, 147, 150, AND 288, OF REPUBLIC ACT NO. 8424, AS AMENDED, 
OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS 
AMENDED, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House o f Representatives of the Philippines 
in Congress assembled:
1 
SECTION 1. Title VI, Chapter III, Excise Tax on Alcohol Products, of the National
2 
Internal Revenue Code of 1997 (NIRC), as amended, is hereby further amended to read
3 
as follows:
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“CHAPTER III
5 
“EXCISE TAX ON ALCOHOL PRODUCTS
6 
“SEC. 141. Distilled Spirits. -  On distilled spirits, subject to the provisions of
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Section 133 of this Code, an excise tax shall be levied, assessed and collected
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based on the following schedules:
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“ [ (a) Effective on January 1,2013
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“(1) An ad valorem tax equivalent to fifteen percent (15%) of the net
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retail price (excluding the excise tax and the value-added tax) per proof; and


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“(2) In addition to the ad valorem tax herein imposed, a specific tax 
of Twenty pesos (P20.00) per proof liter.
“(b) Effective on January 1,2015
“(1) An ad valorem tax equivalent to twenty percent (20%) 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 
rate of Twenty pesos (P20.00) per proof liter.
“(c) In addition to the ad valorem tax herein imposed, the specific tax 
rate of Twenty pesos (P20.00) per proof liter imposed under this Section shall be 
increased by four percent (4%) every year thereafter effective on January 1,2016, 
through revenue regulations issued by the Secretary of Finance. ]
“(A) EFFECTIVE ON JANUARY 1, 2020
“(1) AN AD VALOREM TAX EQUIVALENT TO TWENTY PERCENT 
(20%) 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 PESOS (P90.00) PER PROOF LITER.
“(B) EFFECTIVE ON JANUARY 1, 2021
“(1) AN AD VALOREM TAX EQUIVALENT TO TWENTY PERCENT 
(20%) 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 PESOS (P100.00) PER PROOF LITER.
“(C) EFFECTIVE ON JANUARY 1, 2022
“(1) AN AD VALOREM TAX EQUIVALENT TO TWENTY PERCENT 
(20%) 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 TEN PESOS (P110.00) PER PROOF LITER. 
(D) EFFECTIVE ON JANUARY 1, 2023


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“(1) AN AD VALOREM TAX EQUIVALENT TO TWENTY PERCENT 
(20%) 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 TWENTY PESOS (P120.00) PER PROOF 
LITER.
(E) IN ADDITION TO THE AD VALOREMTAX HEREIN IMPOSED, 
THE SPECIFIC TAX IMPOSED UNDER THIS SECTION SHALL BE INCREASED 
BY 
TEN 
PERCENT 
(10%) 
EVERY 
YEAR 
THEREAFTER, 
EFFECTIVE 
JANUARY 1, 2024, THROUGH REVENUE REGULATIONS TO BE ISSUED BY 
THE SECRETARY OF FINANCE.
“Medicinal preparations, flavoring extracts, and all other preparations, 
except toilet preparations, of which, excluding water, distilled spirits from the chief 
ingredient, shall be subject to the same tax as such chief ingredient.
“ XXX 
XXX 
XXX
“‘Net retail price’ shall mean the price at which the distilled spirits is sold on 
retail in at least five (5) major supermarkets in Metro Manila, excluding the amount 
intended to cover the applicable excise tax and the value-added tax. For distilled 
spirits which are marketed outside Metro Manila, the “net retail price’ shall mean 
the price at which the distilled spirits is sold in at least five (5) major supermarkets 
in the region excluding the amount intended to cover the applicable excise tax and 
the value-added tax: PROVIDED, THAT THE NET RETAIL PRICE SHALL BE 
INITIALLY PROVIDED BY THE MANUFACTURER THROUGH A SWORN 
STATEMENT AND SHALL BE VALIDATED BY THE BUREAU OF INTERNAL 
REVENUE THROUGH A PRICE SURVEY
“Major supermarkets, as contemplated under this Act, shall be those with 
the highest annual gross sales in Metro Manila or the region, as the case may be, 
as determined by the BUREAU OF INTERNAL REVENUE [ National Statistics 
Office ], and shall exclude retail outlets or kiosks, convenience or sari-sari stores, 
and others of a similar nature: Provided, That no two (2) supermarkets in the list 
to be surveyed are affiliated and/or branches of each other: Provided, finally. That


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in case a particular distilled spirit is not sold in major supermarkets, the price survey 
can be conducted in retail outlets where said distilled spirit is sold in Metro Manila 
or the region, as the case may be, upon the determination of the Commissioner of 
Internal Revenue.
“The net retail price shall be determined by the Bureau of Internal Revenue 
through [ a ] BIANNUAL price survey under oath.
XXX 
XXX
XXX
“[ All distilled spirits existing in the market at the time of the effectivity of this 
Act shall be taxed according to the tax rates provided above based on the latest 
price survey of the distilled spirits conducted by the Bureau of Internal Revenue.]
XXX 
XXX
XXX
“Manufacturers and importers of distilled spirits shall, within thirty (30) days 
from the effectivity of this Act, and within the first five (5) days of every third month 
thereafter, submit to the Commissioner a sworn statement of the volume of sales 
AND REMOVALS for each particular brand of distilled spirits sold at his 
establishment for the three-month period immediately preceding.
“ XXX 
XXX 
XXX
“SEC. 142. Wines. -  On wines, there shall be collected, [ per liter of volume 
capacity ] effective JANUARY 1, 2020 [ January 1, 2013 ] , the following excise 
taxes:
“(a) ALL SPARKLING WINES REGARDLESS OF PROOF AND NET 
RETAIL PRICE SHALL BE IMPOSED A SPECIFIC TAX OF SIX HUNDRED 
PESOS (P600.00) PER LITER; AND [ Sparkling wines/champagnes regardless of 
proof, if the net retail price per bottle of seven hundred fifty milliliter (750 ml.) 
volume capacity (excluding the excise tax and value-added tax) is:
“(1) Five hundred pesos (P500.00) or less -  Two hundred fifty pesos 
(P250.00)); and
“(2) More than Five hundred pesos (P500.00) -  Seven hundred pesos 
(P700.00).]
“(b) ALL STILL WINES AND CARBONATED WINES REGARDLESS OF 
ALCOHOL VOLUME SHALL BE IMPOSED A SPECIFIC TAX OF FORTY-


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THREE PESOS (P43.00) PER LITER. [ Still wines containing and carbonated 
wines containing fourteen percent (14%) of alcohol by volume or less, Thirty pesos 
(P30.00); and ]
“[ (c) Still wines and carbonated wines containing more than fourteen 
percent (14%) but not more than twenty-five percent (25%) of alcohol by volume, 
Sixty pesos (P60.00). ]
“The rates of tax imposed under this Section shall be increased by [ four 
percent (4%) ] TEN PERCENT (10%) every year thereafter effective [ January 1, 
2014 ] JANUARY 1, 2021, through revenue regulations issued by the Secretary 
of Finance.
“[ Fortified wines containing more than twenty-five percent (25%) of alcohol 
by volume shall be taxed as distilled spirits. Tortified wines' shall mean natural 
wines to which distilled spirits are added to increase their alcohol strength.]
“[ ‘Net retail price' shall mean the price at which sparkling wine/champagne 
is sold on retail in at least five (5) major supermarkets in Metro Manila, excluding 
the amount intended to cover the applicable excise tax and the value-added tax. 
For sparkling wines/champagnes which are marketed outside Metro Manila, the 
‘net retail price' shall mean the price at which the wine is sold in at least five (5) 
major supermarkets in the region excluding the amount intended to cover the 
applicable excise tax and the value-added tax.]
“[ Major supermarkets, as contemplated under this Act, shall be those with 
the highest annual gross sales in Metro Manila or the region, as the case may be, 
as determined by the National Statistics Office, and shall exclude retail outlets or 
kiosks, convenience or sari-sari stores, and others of a similar nature; Provided, 
That no two (2) supermarkets in the list to be surveyed are affiliated and/or 
branches of each other: Provided, finally, That in case a particular sparkling 
wine/champagne is not sold in major supermarkets, the price survey can be 
conducted in retail outlets where said sparkling wine/champagne is sold in Metro 
Manila or the region, as the case may be, upon the determination of the 
Commissioner of Internal Revenue. ]


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“[ The net retail price shall be determined by the Bureau of Internal Revenue 
through a price survey under oath ]
“[ The methodology and all pertinent documents used in the conduct of the 
latest price survey shall be submitted to the Congressional Oversight Committee 
on the Comprehensive Tax Reform Program (COCCTRP) created under Republic 
Act No. 8240 ]
“[ Understatement of the suggested net retail price by as much as fifteen 
percent (15%) of the actual net retail price shall render the manufacturer or 
importer liable for additional excise tax equivalent to the tax due and difference 
between the understated suggested net retail price and the actual net retail price.]
“[ Sparkling wines/champagnes introduced in the domestic market after the 
effectivity of this Act shall be initially tax classified according to their suggested net 
retail prices ]
“[ ‘Suggested net retail price' shall mean the price (excluding VAT and 
excise 
tax) 
at 
which 
locally 
manufactured 
or 
imported 
sparkling 
wines/champagnes are intended by the manufacturer or importer to be sold on 
retail in major supermarkets or retail outlets in Metro Manila for those marketed 
nationwide, and in other regions, for those with regional markets. At the end of 
three (3) months from the product launch, the Bureau of Internal Revenue shall 
validate the suggested net retail price of the sparkling wine/champagne against 
the net retail price as defined herein and initially determine the correct tax bracket 
to which a newly introduced sparkling wine/champagne shall be classified. After 
the end of nine (9) months from such validation, the Bureau of Internal Revenue 
shall revalidate the initially validated net retail price against the net retail price as 
of the time of revalidation in order to finally determine the correct tax bracket to 
which a newly introduced sparkling wine/champagne shall be classified.
“[ The proper tax classification of sparkling wines/champagnes, whether 
registered before or after the effectivity of this Act, shall be determined every two 
(2) years from the date of effectivity of this Act.]
“[ All sparkling wines/champagnes existing in the market at the time of the 
effectivity of this Act shall be taxed according to the net retail prices and the tax


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rates provided above based on the latest price survey of the sparkling 
wines/champagnes conducted by the Bureau of Internal Revenue.]
“[ The methodology and all pertinent documents used in the conduct of the 
latest price survey shall be submitted to the Congressional Oversight Committee 
on the Comprehensive Tax Reform Program created under Republic Act No. 
8240 ]
“Manufacturers and importers of wines 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 wine[ s ] sold at [ his ] THEIR 
establishment for the three-month period immediately preceding.
“ XXX 
XXX 
XXX
“SEC. 143. ALCOPOPS AND Fermented Liquor. -  There shall be levied, 
assessed and collected an excise tax on ALCOPOPS, 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 domestic fermented liquors, in accordance with the following 
schedule.
“[Effective on January 1,2013
“(a) If the net retail price (excluding the excise tax and the value-added tax) 
per liter of volume capacity is Fifty pesos and sixty centavos (P50.60) or less, the 
tax shall be Fifteen pesos (PI 5.00) per liter; and
“(b) If the net retail price (excluding the excise tax and the value-added tax) 
per liter of volume capacity is more than Fifty pesos and sixty centavos (P50.60), 
the tax shall be Twenty pesos (P20.00) per liter.
“Effective on January 1, 2014
“(a) If the net retail price (excluding the excise tax and the value-added tax) per 
liter of volume capacity is Fifty pesos and sixty centavos (P50.60) or less, the tax 
shall be Seventeen pesos (PI 7.00) per liter; and


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“(b) If the net retail price (excluding the excise tax and the value-added tax) per 
liter of volume capacity is more than Fifty pesos and sixty centavos (P50.60), the 
tax shall be Twenty-one pesos (P21.00) per liter.
“Effective on January 1, 2015
“(a) If the net retail price (excluding the excise tax and the value-added tax) per 
liter of volume capacity is Fifty pesos and sixty centavos (P50.60) or less, the tax 
shall be Nineteen pesos (PI 9.00) per liter; and
“(b) If the net retail price (excluding the excise tax and the value-added tax) per 
liter of volume capacity is more than Fifty pesos and sixty centavos (P50.60), the 
tax shall be Twenty-two pesos (P22.00) per liter.
“Effective on January 1, 2016
“(a) If the net retail price (excluding the excise tax and the value-added tax) per 
liter of volume capacity is Fifty pesos and sixty centavos (P50.60) or less, the tax 
shall be Twenty-one pesos (P21.00) per liter; and
“(b) If the net retail price (excluding the excise tax and the value-added tax) 
per liter of volume capacity is more than Fifty pesos and sixty centavos (P50.60), 
the tax shall be Twenty-three pesos (P23.00) per liter.
“Effective on January 1, 2017, the tax on all fermented liquors shall be 
Twenty-three pesos and fifty centavos (P23.50) per liter. ]
“EFFECTIVE ON JANUARY 1,2020, THE TAX SHALL BE FORTY FIVE PESOS 
(P45.00) PER LITER;
“EFFECTIVE ON JANUARY 1, 2021, THE TAX SHALL BE FIFTY FIVE 
PESOS (P55.00) PER LITER;
“EFFECTIVE ON JANUARY 1, 2022, THE TAX SHALL BE SHALL BE 
SIXTY FIVE PESOS (P65.00) PER LITER; AND
“EFFECTIVE ON JANUARY 1, 2023, THE TAX SHALL BE SHALL BE 
SEVENTY FIVE PESOS (P75.00) PER LITER.
“The rates of tax imposed under this Section shall be increased by [ four 
percent (4%) ] TEN PERCENT (10%) every year thereafter effective JANUARY 1, 
2024 [ January 1, 2018 ] ,  through revenue regulations issued by the Secretary of 
Finance. [ However, in case of fermented liquors affected by the ‘no downward


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reclassification’ provision prescribed under this Section, the four percent (4%) 
increase shall apply to their respective applicable tax rates. ]
“ ALCOPOPS’ SHALL MEAN PRE-MIXED ALCOHOLIC BEVERAGES 
WITH ALCOHOL CONTENT OF LESS THAN 10% ALCOHOL BY VOLUME AND 
WHICH ALCOHOL IS FROM MALT OR WINES OR A DISTILLATION 
PROCESS.
“[ Fermented liquors which are brewed and sold at micro-breweries or small 
establishments such as pubs and restaurants shall be subject to the rate of 
Twenty-eight pesos (P28.00) per liter effective on January 1, 2013: Provided, That 
this rate shall be increased by four percent (4%) every year thereafter effective on 
January 1,2014, through revenue regulations issued by the Secretary of Finance.]
“[ Fermented liquors introduced in the domestic market after the effectivity 
of this Act shall be initially tax classified according to their suggested net retail 
prices. ]
“['Suggested net retail price’ shall mean the net retail price at which locally 
manufactured or imported fermented liquor are intended by the manufacturer or 
importer to be sold on retail in major supermarkets or retail outlets in Metro Manila 
for those marketed nationwide, and in other regions, for those with regional 
markets. At the end of three (3) months from the product launch, the Bureau of 
Internal Revenue shall validate the suggested net retail price of the newly 
introduced fermented liquor against the net retail price as defined herein and 
initially determine the correct tax bracket to which a newly introduced fermented 
liquor, as defined above, shall be classified. After the end of nine (9) months from 
such validation, the Bureau of Internal Revenue shall revalidate the initially 
validated net retail price against the net retail price as of the time of revalidation in 
order to finally determine the correct tax bracket to which a newly introduced 
fermented liquor shall be classified. ]
“[ ‘Net retail price’ shall mean the price at which the fermented liquor is sold 
on retail in at least five (5) major supermarkets in Metro Manila (for brands of 
fermented liquor marketed nationally), excluding the amount intended to cover the 
applicable excise tax and the value-added tax. For brands which are marketed


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outside Metro Manila, the ‘net retail price' shall mean the price at which the 
fermented liquor is sold in at least five (5) major supermarkets in the region 
excluding the amount intended to cover the applicable excise tax and the value- 
added tax .]
“[ Major supermarkets, as contemplated under this Act, shall be those with 
the highest annual gross sales in Metro Manila or the region, as the case may be, 
as determined by the National Statistics Office, and shall exclude retail outlets or 
kiosks, convenience or sari-sari stores, and others of a similar nature: Provided, 
That no two (2) supermarkets in the list to be surveyed are affiliated and/or 
branches of each other: Provided, finally. That in case a particular fermented liquor 
is not sold in major supermarkets, the price survey can be conducted in retail 
outlets where said fermented liquor is sold in Metro Manila or the region, as the 
case may be, upon the determination of the Commissioner of Internal Revenue. ] 
“[ The net retail price shall be determined by the Bureau of Internal Revenue 
(BIR) through a price survey under oath. ]
“[ The methodology and all pertinent documents used in the conduct of the 
latest price survey shall be submitted to the Congressional Oversight Committee 
on the Comprehensive Tax Reform Program created under Republic Act No. 
8240.]
“[ Understatement of the suggested net retail price by as much as fifteen 
percent (15%) of the actual net retail price shall render the manufacturer or 
importer liable for additional excise tax equivalent to the tax due and difference 
between the understated suggested net retail price and the actual net retail price.] 
“[Any downward reclassification of present categories, for tax purposes, of 
fermented liquors duly registered at the time of the effectivity of this Act which will 
reduce the tax imposed herein, or the payment thereof, shall be prohibited. ]
“[ The proper tax classification of fermented liquors, whether registered 
before or after the effectivity of this Act, shall be determined every two (2) years 
from the date of the effectivity of this Act. ]
“[ All fermented liquors existing in the market at the time of the effectivity of 
this Act shall be classified according to the net retail prices and the tax rates
10


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provided above based on the latest price survey of 
the fermented liquors
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conducted by the Bureau of Internal Revenue. ]
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“[ The methodology and all pertinent documents used in the conduct of the
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latest price survey shall be submitted to the Congressional Oversight Committee
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on the Comprehensive Tax Reform Program created under Republic Act No.
6 
8240.]
7 
“Every brewer, MANUFACTURER or importer of ALCOPOPS AND/OR
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fermented liquor shall, within thirty (30) days from the effectivity of this Act, and
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within the first five (5) days of every month thereafter, submit to the Commissioner
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a sworn statement of the volume of sales AND REMOVALS for each particular
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brand of ALCOPOPS AND/OR fermented liquor sold at his establishment for the
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three-month period immediately preceding.
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“Any brewer, MANUFACTURER or importer who, in violation of this
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Section, misdeclares or misrepresents in his or its sworn statement herein required
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any pertinent data or information shall, upon final findings by the Commissioner
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that the violation was committed, be penalized by a summary cancellation or
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withdrawal of his or its permit to engage in business as brewer, M ANUFACTURER
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or importer of ALCOPOPS AND/OR fermented liquor.
19 
“XXX 
XXX 
XXX “
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SEC. 2. Section 144 (B) and 144 (C) of the National Internal Revenue Code of
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1997, as amended, are hereby further amended to read as follows:
22 
“SEC. 144. (A) Tobacco Products. -  xxx
23 
“xxx 
xxx 
xxx
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“(B) Heated Tobacco Products. -  There shall be levied, assessed, and
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collected on heated tobacco products an excise tax at the rate prescribed below:
26 
“(1) EFFECTIVE JANUARY 1, 2020, FORTY-FIVE PESOS (P45.00) [Ten
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pesos (P I 0.00) per pack of twenty (20) units or packaging combinations of not
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more than twenty (20) units effective on January 1 ,2020 ]:
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(2) EFFECTIVE JANUARY 1, 2021, FIFTY PESOS (P50.00);
30 
“(3) EFFECTIVE JANUARY 1, 2022, FIFTY-FIVE PESOS (P55.00); AND
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“(4) EFFECTIVE JANUARY 1, 2023, SIXTY PESOS (P60.00).
11


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“[ (2) ] PROVIDED THAT t[T]he rates of tax imposed under this Subsection 
shall be increased by five percent (5%) every year effective on JANUARY 1, 2024 
[ January 1, 2021 ], through revenue regulations issued by the Secretary of 
Finance.
“XXX 
XXX 
XXX
“Manufacturers, distributors, and importers of heated tobacco products 
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 heated 
tobacco products sold for the three-month period immediately preceding.
“XXX 
XXX 
XXX
SELLING OF HEATED TOBACCO PRODUCTS AT A PRICE LOWER 
THAN THE COMBINED EXCISE AND VALUE-ADDED TAXES IMPOSED 
UNDER THIS ACT SHALL BE PROHIBITED. THE SELLER OF SUCH 
PRODUCTS SHALL BE PUNISHED WITH A FINE OF NOT LESS THAN TEN 
(10) TIMES THE AMOUNT OF EXCISE PLUS VALUE-ADDED TAXES DUE BUT 
NOT LESS THAN TWO HUNDRED THOUSAND PESOS (P200.000.00) NOR 
MORE THAN 
FIVE HUNDRED THOUSAND PESOS (500,000.00), AND 
IMPRISONMENT OF NOT LESS THAN FOUR (4) YEARS BUT NOT MORE 
THAN SIX (6) YEARS.
“THE BUREAU OF INTERNAL REVENUE (BIR) IS MANDATED TO 
ISSUE A REVENUE REGULATION PRESCRIBING THE FLOOR PRICE OR 
THE MINIMUM PRICE OF HEATED TOBACCO PRODUCT TAKING INTO 
ACCOUNT THE SUM OF THE EXCISE AND VALUE-ADDED TAXES AS 
PROVIDED HEREIN.
“XXX 
XXX 
XXX
“(C) Vapor Products. -  There shall be levied, assessed and collected on 
vapor products, excise tax at the rates prescribed below:
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“[ (1) Effective on January 1, 2020, individual cartridge, refill, pod, or 
container of vapor products containing liquid solutions or gel sold in the following 
quantities:
QUANTITY
EXCISE TAX
0.00 ml to 10.00 ml
Ten pesos (PI 0.00)
10.01 ml to 20.00 
ml
Twenty pesos (P20.00)
20.01 ml to 30.00 
ml
Thirty pesos (P30.00)
30.01 ml to 40.00 
ml
Forty pesos (P40.00)
40.01 ml to 50.00 
ml
Fifty pesos (P50.00)
More than 50.00 ml
Fifty pesos (P50.00) plus Ten pesos 
(P10.00) for every additional 10.00 ml
]
“ (1) NICOTINE SALT OR SALT NICOTINE. -  THERE SHALL BE LEVIED, 
ASSESSED, AND COLLECTED ON ANY LIQUID SUBSTANCE REGARDLESS 
OF NICOTINE CONTENT, INCLUDING NICOTINE-FREE LIQUIDS OR ANY 
SIMILAR PRODUCT USED IN ANY OF THE DEVICES LISTED IN SUBSECTION 
150 (D) OF THIS ACT, FURTHER CLASSIFIED AS NICOTINE SALT OR SALT 
NICOTINE AN EXCISE TAX BASED ON THE FOLLOWING SCHEDULES:
“ EFFECTIVE ON JANUARY 1, 2020, FORTY-FIVE PESOS (P45.00) PER 
MILLILITER OR A FRACTION THEREOF;
“EFFECTIVE ON JANUARY 1, 2021, FIFTY PESOS (P50.00) PER 
MILLILITER OR A FRACTION THEREOF;
EFFECTIVE ON JANUARY 1, 2022, FIFTY-FIVE PESOS (P55.00) PER 
MILLILITER OR A FRACTION THEREOF; AND
“EFFECTIVE ON JANUARY 1, 2023, SIXTY PESOS (P60.00) PER 
MILLILITER OR A FRACTION THEREOF.
13


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
“[ (2) ] PROVIDED THAT t[T]he rates of tax imposed under this Subsection 
shall be increased by five percent (5%) every year effective on JANUARY 1, 2024 
[ January 1, 2021 ] , through revenue regulations issued by the Secretary of 
Finance.
“ (2) CONVENTIONAL ‘FREEBASE’ OR ‘CLASSIC’ NICOTINE. -  THERE 
SHALL BE LEVIED, ASSESSED, AND COLLECTED ON ANY LIQUID 
SUBSTANCE, 
REGARDLESS 
OF 
NICOTINE 
CONTENT, 
INCLUDING 
NICOTINE-FREE LIQUID OR ANY SIMILAR PRODUCT USED IN ANY OF THE 
DEVICES LISTED UNDER SUBSECTION 150(D) OF THIS ACT, FURTHER 
CLASSIFIED AS CONVENTIONAL ‘FREEBASE’ OR ‘CLASSIC’ NICOTINE AN 
EXCISE TAX BASED ON THE FOLLOWING SCHEDULES:
“ EFFECTIVE ON JANUARY 1, 2020, FORTY-FIVE PESOS (P45.00) PER 
TEN (10) MILLILITERS OR A FRACTION THEREOF;
“EFFECTIVE ON JANUARY 1, 2021, FIFTY PESOS (P50.00) PER TEN 
(10) MILLILITERS OR A FRACTION THEREOF;
EFFECTIVE ON JANUARY 1, 2022, FIFTY-FIVE PESOS (P55.00) PER 
TEN (10) MILLILITERS OR A FRACTION THEREOF; AND
“EFFECTIVE ON JANUARY 1, 2023, SIXTY PESOS (P60.00) 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.
“ THE FOOD AND DRUG ADMINISTRATION (FDA) SHALL DETERMINE 
AND 
REGULATE 
THE 
MANUFACTURE, 
IMPORTATION, 
SALE 
AND 
DISTRIBUTION OF VAPOR PRODUCTS, INCLUDING THE DIFFERENT 
FLAVORINGS AND VARIANTS.
“XXX 
XXX 
XXX
“Any corporation, association or partnership liable for any of the acts or 
omissions in violation of this Section shall be fined treble the amount of deficiency 
taxes, surcharges and interest which may be assessed pursuant to this Section.
14


1 
SELLING OF VAPOR PRODUCTS AT A PRICE LOWER THAN THE
2 
COMBINED EXCISE AND VALUE-ADDED TAXES IMPOSED UNDER THIS
3 
ACT SHALL BE PROHIBITED. THE SELLER OF SUCH PRODUCTS SHALL BE
4 
PUNISHED WITH A FINE OF NOT LESS THAN TEN (10) TIMES THE AMOUNT
5 
OF EXCISE TAX PLUS VALUE-ADDED TAXES DUE BUT NOT LESS THAN
6 
TWO HUNDRED THOUSAND PESOS (P200,000.00) NOR MORE THAN FIVE
7 
HUNDRED THOUSAND PESOS (P500,000.00), AND IMPRISONMENT OF NOT
8 
LESS THAN FOUR (4) YEARS BUT NOT MORE THAN SIX (6) YEARS.
9 
“ THE BIR IS MANDATED TO ISSUE A REVENUE REGULATION
10 
PRESCRIBING THE FLOOR PRICE OR THE MINIMUM PRICE OF VAPOR
11 
PRODUCTS TAKING INTO ACCOUNT THE SUM OF THE EXCISE TAX AND
12 
VALUE-ADDED TAXES AS PROVIDED HEREIN.”
13 
“xxx 
XXX 
XXX “
14 
SEC. 3. Section 147 of the National Internal Revenue Code of 1997, as amended
15 
by Republic Act 11346 is hereby further amended to read as follows:
16 
“SEC, 147. Definition of Terms, - x x x .
17 
“(a) xxx
18 
“xxx 
xxx 
xxx
19 
“(f) 'Vapor products' shall mean any liquid solution or gel which contains
20 
nicotine that transforms into an aerosol without combustion through the
21 
employment of a mechanical heating element, battery or circuit that can be used
22 
to heat such solution or gel, and includes [ but is not limited to, a cartridge, a tank,
23 
and the device without a cartridge or tank. It is commonly known as e-liquids’ for
24 
e-cigarettes.’ ] NICOTINE SALT/SALT NICOTINE, AND CONVENTIONAL
25 
“ FREEBASE” OR “ CLASSIC” NICOTINE, AND OTHER SIMILAR PRODUCTS.
26 
[ It also includes electronic nicotine and 
non-nicotine delivery systems
27 
(ENDS/ENNDS) which are combinations of non-tobacco containing e-liquids or
28 
refills which contain up to sixty-five milligrams per milliliter (65mg/ml) of nicotine in
29 
the e-liquid or refill and an electronic delivery device to produce an aerosol, mist
30 
or vapor that users inhale by mimicking the act of smoking. ] ’’
15


1 
SEC. 4. Section 150 of the NIRC, as amended, is hereby amended to read as
2 
follows:
3 
“SEC. 150. Non-essential Goods. -  There shall be levied, assessed and
4 
collected a tax equivalent to twenty-percent (20%) based on the wholesale price
5 
or the value of importation used by the Bureau of Customs in determining tariff and
6 
customs duties, net of excise tax and value-added tax, of the following goods:
7 
“(a) XXX
8 
“XXX 
XXX 
XXX
9 
“ (c) Yachts and other vessels intended for pleasure or sports; AND [.]
10 
“ (D) 
TOBACCO 
HEATING 
SYSTEMS 
AND 
ELECTRONIC 
OR
11 
MECHANICAL CIGARETTE DEVICES, WHICH INCLUDE, BUT ARE NOT
12 
LIMITED, 
TO 
ELECTRONIC 
AND/OR 
NON-ELECTRONIC 
NICOTINE
13 
DELIVERY SYSTEMS, E-CIGARETTES, VAPES, VAPORIZERS, VAPING
14 
SYSTEMS, TANK SYSTEM, MODS, AND E-HOOKAHS, OR ANY SIMILAR
15 
PRODUCT, AS MAY BE DETERMINED BY REVENUE REGULATION, AND
16 
ANY 
M AND ATO RY 
CO M PO NENT 
THEREOF 
EXCLUDING  
BATTERIES,
17 
CHARGERS, 
AND 
CHARGING 
CABLES 
WHEN 
SOLD 
SEPARATELY.
18 
HOW EVER, IF BATTERIES, CHARGERS, CHARGING CORDS, AND OTHER
19 
ACCESSORIES ARE SOLD OR PACKAGED TOGETHER WITH A TOBACCO
20 
HEATING OR ELECTRONIC OR MECHANICAL CIGARETTE DEVICE AS ONE
21 
SALEABLE ITEM, THE VALUE THEREOF SHALL FORM PART OF THE
22 
W HOLESALE PRICE OR THE VALUE OF IMPORTATION.”
23
24 
SEC 5. Section. 288-A of the National Internal Revenue Code of 1997, as
25 
amended, is hereby amended to read as follows:
26 
“Sec. 288-A. Disposition of Revenues from Excise Tax on Sugar-
27 
Sweetened Beverages, Alcohol, Tobacco Products, Heated Tobacco Products,
28 
and Vapor Products. -
29 
“(B) Revenues from Excise Tax on Alcohol Products. - The provisions of
30 
existing laws to the contrary notwithstanding, [fifty percent (50%)] ONE HUNDRED
16


2
1
PERCENT (100%) of the total revenues collected from the excise tax on alcohol 
products shall be allocated and used exclusively in the following manner;
3
4
“(1) Eighty percent (80%) [to PhilHealth] for the implementation of Republic Act 
No. 11223, otherwise known as the Universal Health Care Act of 2019; and;
5
6
7
8
9
10
11
12
13
[(2) Twenty percent (20%) shall be allocated nationwide, based on political and 
district subdivisions, for medical assistance and the Health Facilities Enhancement 
Program (HFEP), the annual requirements of which shall be determined by the 
DOH;]
“ (2) 
TWENTY 
PERCENT 
(20%) 
SHALL 
BE 
ALLOCATED 
FOR 
THE 
ATTAINMENT OF THE SUSTAINABLE DEVELOPMENT GOALS (SDGS); 
PROVIDED, THAT THE SPECIFIC SDG TARGETS SHALL BE DETERMINED 
BY THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY (NEDA). “
“ XXX 
XXX 
XXX
14
15
16
17
18
19
20
(D) Revenues from Excise Tax on Heated Tobacco Products and Vapor Products. 
-The provisions of existing laws to the contrary notwithstanding, ONE HUNDRED 
PERCENT (100 %) of the total revenues collected from the excise tax on heated 
tobacco products and vapor products shall be allocated and used exclusively in 
the following manner;
‘‘(1) Eighty percent (80%) [to PhilHealth] for the implementation of Republic Act 
No. 11223, otherwise known as the Universal Health Care Act of 2019; and;
21
22
23
24
25
26
27
28
29
30
[(2) Twenty percent (20%) shall be allocated nationwide, based on political and 
district subdivisions, for medical assistance and the Health Facilities Enhancement 
Program (HFEP), the annual requirements of which shall be determined by the 
DOH;]
“ (2) 
TWENTY 
PERCENT 
(20%) 
SHALL 
BE 
ALLOCATED 
FOR 
THE 
ATTAINMENT OF THE SUSTAINABLE DEVELOPMENT GOALS (SDGS); 
PROVIDED, THAT THE SPECIFIC SDG TARGETS SHALL BE DETERMINED 
BY THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY (NEDA). “
XXX 
XXX
XXX
31
17


1 
Sec. 6. Annual Report. -  Government agencies and offices involved in the
2 
implementation of the UHC and the SDGs shall each submit to the Congressional
3 
Oversight Committee created under Republic Act No. 10351, a detailed report on the
4 
expenditure of the amounts earmarked in this Act on the first week of August every year.
5 
The reports shall be simultaneously published in the Official Gazette and in the agencies’
6 
websites.
7 
SEC. 7. Implementing Rules and Regulations. -  The Secretary of Finance shall,
8 
upon the recommendation of the Commissioner of the Bureau of Internal Revenue,
9 
promulgate the necessary rules and regulations for the effective im plementation of this
10 
Act.
11 
SEC. 8 .  Repealing Clause. -  All laws, decrees, executive orders, rules and
12 
regulations or parts thereof which are contrary to or inconsistent with this Act are hereby
13 
repealed, am ended or modified accordingly.
14 
SEC. 9. Effectivity. -  This Act shall take effect upon its publication either in the
15 
Official Gazette or in a newspaper of general circulation.
Approved,
18