Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

Nineteenth Congress
Third Regular Session

House BillNo. 11493

Introduced by Representative Percival V. Cendafia

AN ACT
INCREASING THE EXCISE TAX ON PRE-MIXED ALCOHOLIC BEVERAGES,
AMENDING FOR THIS PURPOSE THE NATIONAL INTERNAL REVENUE
CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES.

EXPLANATORY NOTE

Alcohol consumption remains a significant public health concern both globally and
in the Philippines. According to the World Health Organization (WHO), the harmful use
of alcohol contributes to approximately three (3) million deaths annually. Additionally,
alcohol plays a major role in over 230 different diseases, affecting not only drinkers but
also those around them. By 2018, global alcohol consumption was estimated at 6.2 liters of
pure alcohol per person aged 15 years and older, with unrecorded consumption accounting
for 26% of the total consumption worldwide.

In the Philippines, findings from the 2021 Department of Health's mobile phone
health survey on non-communicable disease (NCD) risk factors indicate a high prevalence
of alcohol consumption. The survey revealed that four (4) in ten (10) Filipinos reported
engaging in episodic drinking within 30 days prior to the study. Alcohol consumption was
notably higher among men (51.4%) compared to women (28.9%). Furthermore, one (1) in
three (3) adult Filipinos (33.1%) reported drinking six or more drinks in a single session,
with a higher prevalence among men (43.2%) than women (22.9%).

The enactment of previous sin tax laws, such as Republic Act No. 10351 and its
amendment under Republic Act No. 11467, significantly contributed to public health
improvements and fiscal sustainability. The additional revenues generated from increased
alcohol excise taxes have helped fund health programs, including premium subsidies for
the health insurance of indigents and senior citizens not covered by the National Health
Insurance Program (NHIP). Notably, even during the coronavirus pandemic, adjustments
to alcohol excise tax rates enabled the government to sustain revenue collection, with excise
tax revenue increasing by 1% in 2020 despite an overall decline in total government
revenue by 11%.


Currently, pre-mixed alcoholic beverages, often marketed as "alcopops," "coolers,"
"breezers," and similar products, are classified under distilled spirits and subjected to a 22%
ad valorem tax plus a specific tax rate of P52.00 per proof liter. However, these beverages
exhibit consumption patterns similar to beer and other fermented liquors. This bill seeks to
reclassify pre-mixed alcoholic beverages as fermented liquors, imposing a revised excise
tax structure that progressively increases specific tax rates from P82.00 per proof liter in
2026 to P252.00 per proof liter in 2031, with a 6% annual increase thereafter.

The adjustment in excise tax rates on pre-mixed alcoholic beverages aims to reduce
the harmful effects of alcohol consumption by discouraging excessive drinking,
particularly among the youth and vulnerable sectors. By aligning the taxation of pre-mixed
alcoholic beverages with other fermented liquors, this measure will help mitigate the public
health risks associated with alcohol consumption while ensuring continued funding for
essential health programs.

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

ntative Percival V. Cendafia
AKBAYAN Partylist



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

Nineteenth Congress
Third Regular Session

House Bill.No. 11493

Introduced by Representative Percival V. Cendafia

AN ACT
INCREASING THE EXCISE TAX ON PRE-MIXED ALCOHOLIC BEVERAGES,
AMENDING FOR THIS PURPOSE THE NATIONAL INTERNAL REVENUE
CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES

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

Section 1. A new section designated as Section 143-A of the National Internal
Revenue Code of 1997, as amended, is hereby inserted as follows:

“SEC. 143-A, PRE-MIXED ALCOHOLIC BEVERAGES. THERE
SHALL BE LEVIED, ASSESSED, AND COLLECTED AN EXCISE TAX ON
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, IN ACCORDANCE WITH THE
FOLLOWING SCHEDULE:

(A)EFFECTIVE JANUARY 1, 2026
(1) AN AD VALOREM TAX EQUIVALENT TO TWENTY-TWO

PERCENT OF NET RETAIL PRICE (EXCLUDING THE
EXCISE TAX AND VALUE-ADDED TAX) PER PROOF; AND


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(2)IN ADDITION TO THE AD VALOREM TAX HEREIN
IMPOSED, A SPECIFIC TAX OF EIGHTY-TWO PESOS
(P82.00) PER PROOF LITER.

(B) EFFECTIVE JANUARY 1, 2027

(l) AN AD VALOREM TAX EQUIVALENT TO TWENTY-TWO
PERCENT OF NET RETAIL PRICE (EXCLUDING THE EXCISE
TAX AND VALUE-ADDED TAX) PER PROOF; AND

(2) IN ADDITION TO THE AD VALOREM TAX HEREIN IMPOSED, A
SPECIFIC TAX OF ONE HUNDRED AND THREE PESOS (P 103.00)
PER PROOF LITER.

(C) EFFECTIVE JANUARY 1, 2028

(1) AN AD VALOREM TAX EQUIVALENT TO TWENTY-TWO
PERCENT OF NET RETAIL PRICE (EXCLUDING THE EXCISE
TAX AND VALUE-ADDED TAX) PER PROOF; AND

(2) IN ADDITION TO THE AD VALOREM TAX HEREIN IMPOSED, A
SPECIFIC TAX OF ONE HUNDRED TWENTY-NINE PESOS
(P129.00) PER PROOF LITER.

(D) EFFECTIVE JANUARY 1, 2029

(1) AN AD VALOREM TAX EQUIVALENT TO TWENTY-TWO
PERCENT OF NET RETAIL PRICE (EXCLUDING THE EXCISE
TAX AND VALUE-ADDED TAX) PER PROOF; AND

(2) IN ADDITION TO THE AD VALOREM TAX HEREIN IMPOSED, A
SPECIFIC TAX OF ONE HUNDRED SIXTY-ONE PESOS (P161.00)
PER PROOF LITER.

(E) EFFECTIVE JANUARY 1, 2030

(1) AN AD VALOREM TAX EQUIVALENT TO TWENTY-TWO
PERCENT OF NET RETAIL PRICE (EXCLUDING THE EXCISE
TAX AND VALUE-ADDED TAX) PER PROOF; AND

(2) IN ADDITION TO THE AD VALOREM TAX HEREIN IMPOSED, A
SPECIFIC TAX OF TWO HUNDRED AND ONE PESOS (P201.00)
PER PROOF LITER.

(F) EFFECTIVE JANUARY 1, 2031

(1) AN AD VALOREM TAX EQUIVALENT TO TWENTY-TWO
PERCENT OF NET RETAIL PRICE (EXCLUDING THE EXCISE
TAX AND VALUE-ADDED TAX) PER PROOF; AND

(2) IN ADDITION TO THE AD VALOREM TAX HEREIN IMPOSED, A
SPECIFIC TAX OF TWO HUNDRED FIFTY-TWO (P252.00) PER
PROOF LITER.


(G) 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, 2031, THROUGH REVENUE REGULATIONS
TO BE ISSUED BY THE SECRETARY OF FINANCE.

EVERY BREWER, MANUFACTURER OR IMPORTER OF PRE-MIXED
ALCOHOLIC BEVERAGES, 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 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.

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.

ANY PERSON LIABLE FOR ANY OF THE ACTS OR OMISSIONS
PROHIBITED UNDER THIS SECTION SHALL BE CRIMINALLY
LIABLE AND PENALIZED UNDER SECTION 254 OF THIS CODE. ANY
PERSON WHO WILLFULLY AIDS OR ABETS IN THE COMMISSION OF
ANY SUCH ACT OR OMISSION SHALL BE CRIMINALLY LIABLE IN
‘THE SAME MANNER AS THE PRINCIPAL.

IF THE OFFENDER IS NOT A CITIZEN OF THE PHILIPPINES, HE
SHALL BE DEPORTED IMMEDIATELY AFTER SERVING THE
SENTENCE, WITHOUT FURTHER PROCEEDINGS FOR
DEPORTATION.”

Section 2. 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 3. Repealing Clause. - All laws, decrees, executive orders, rules, and
regulations, and other issuances or parts thereof, which are inconsistent with the provisions
of this Act, are hereby repealed, amended, or otherwise modified accordingly.

Section 4. Separability Clause. — If any provision or part of this Act is declared
unconstitutional or invalid, the remaining provisions not affected shall continue to be in
full force and effect.

Section 5. Repealing Clause. — All laws, decrees, executive orders, or regulations
inconsistent with this Act are hereby repealed 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,