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The Bureau of Customs has implemented the annual increase in excise tax rates on alcohol and tobacco products
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The updated rates have been successfully integrated into BOC’s Electronic-to-Mobile System and took effect on March 22
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The adjustments are in compliance with Republic Act No. 11346 and RA No. 11467
The Bureau of Customs (BOC) has implemented the annual increase in the excise tax rates on alcohol and tobacco products.
In Management Information System and Technology Group (MISTG) Memo No. 07-2025 dated March 21, MISTG acting deputy commissioner Ronnel Hombre said the updated rates have been successfully integrated into BOC’s Electronic-to-Mobile System and took effect on March 22.
MISTG Memo No. 07-2025 implements the excise tax rates on alcohol, tobacco, and vapor products under Republic Act (RA) No. 11346, or the Tobacco Tax Law of 2018, and RA 11467.
RA 11346, signed in July 2019, increased the excise taxes on tobacco products and imposed taxation and regulation on heated tobacco products (HTP), and vapor products or popularly known as e-cigarettes or vapes.
RA 11467, signed in January 2020, increased and simplified the tax base of the excise tax on alcohol products and amended the imposed taxation on HTP and vapor products under RA 11346.
Excise tax for HTP started in 2021 with specific rate increases yearly until 2023, and then will have a 5% increase annually starting 2024.
Distilled spirits which include whisky, brandy, rum, gin and vodka, and other similar products or mixtures are charged with a 22% ad valorem tax on the net retail price (excluding excise tax and value-added tax) per proof, plus a specific tax to be imposed yearly starting 2020. Wines also had specific tax implemented since 2020.
Both distilled spirits and wines are also subject to 6% increase in rate yearly starting 2025.
The higher excise taxes on so-called “sin products” are intended to raise more revenues to finance the universal health care program being implemented by the state-run Philippine Health Insurance Corp.
The updated excise taxes implemented under MISTG Memo No. 07-2025 are as follows:
- Distilled spirits – ad valorem tax of 22% of net retail price (NRP), specific tax of P69.96 per liter
- Wine specific tax – P66.91 per liter
- Unmanufactured tobacco – P2.81 per kilogram
- Heated tobacco – P35.84 per pack of 20 units
Due to inherent system limitations, Hombre said the computation of the ad valorem tax applicable to distilled spirits and cigars will be performed manually and as such, tax is determined based on the NRP of the product. – Roumina Pablo
