Tax Digest
Volume 10,
Series 60
New Stamp Colors for Regulating Excise Tax on Cigarettes

In relation to the Republic Act (RA) No. 10351, otherwise known as An Act Restructuring the Excise Tax On Alcohol And Tobacco Products, the BIR now reduced the number of stamp colors, that serves as an indication of classification and tax brackets of cigarettes from 6 to 3, under this circular. That, effective January 1, 2017, the excise tax on cigarette whether classified as domestic, imported or for export will be subjected to a unitary tax of Php30.00. Below are the new classifications:

Effective January 1, 2017
Classification Tax Bracket Three (3) Colors
Domestic Unitary Rate
Imported Orange
Export Green

Furthermore, the Excise LT Field Operations Division (ETFOD) are tasked to monitor the implementation of the unitary tax rate and to conduct inventory count of all unused, unissued, or unaffixed internal revenue stamps in the possession of the manufacturers, importers, and exporters as of December 31, 2016. Finally, the removals or importation using the old internal revenue stamps shall pay the differential excise tax due through eFPS using BIR Form No. 2200-T.

Revenue Memorandum Circular No. 1-2017
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