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Consumption Taxation > Excise Tax > Flashcards

Excise Tax Flashcards

1
Q

Scope of Excise Tax

A
  1. Alcohol products
  2. Tobacco products
  3. Petroleum products
  4. Mineral products
  5. Miscellaneous articles
  6. Non-essential services
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2
Q

Alcohol products

A

Distilled spirits
Sparkling wines / Champagnes
Still wines and carbonated wines
Fermented Liquors

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3
Q

Tobacco products

A

Cigars

Cigarettes

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4
Q

Petroleum products

A 
Gas
Gasoline
Diesel
Wax
Lubricant oils and greases
Kerosene
Naphtha
Denatured alcohol
Coke
Asphalt
Bunker fuel oil
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5
Q

Mineral products

A

Metallic minerals
Non-metallic minerals
Quarry resources

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6
Q

Miscellaneous articles

A

Automobiles
Non-essential goods
Sweetened beverages

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7
Q

Non-essential goods

A

Jewelry
Perfume
Yacht

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8
Q

Sweetened beverages

A

Soft drinks

Sweetened drinks

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9
Q

Non-essential services

A

Cosmetic surgery

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10
Q

Which excisable articles or service are taxable at the point of importation?

A

All, except non-essential services

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11
Q

Which excisable articles or service are taxable at the point of production?

A

All, except mineral products and non-essential services

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12
Q

Which excisable articles or service are taxable at the point of sale?

A

Mineral products and non-essential services only

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13
Q

Timing of Excise Taxation

Taxable at the point of

A

Importation
Production
Sale

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14
Q

Nature of Philippine Excise Tax

A 
Regulatory Tax
Indirect Tax
Consumption Tax
Additional Business Tax
Specific and Ad Valorem Tax
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15
Q

Regulatory Tax

A

Environmental Tax
Sumptuary Tax
Sin Tax

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16
Q

Environmental Tax

Green Tax

A

Petroleum Tax
Quarry resources
Minerals products

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17
Q

Sumptuary Tax

Vanity Tax

A

Intrusive cosmetic surgery
Automobiles and yacht
Jewelry

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18
Q

Sin Tax

Health Tax

A

Alcoholic beverages

Tobacco products

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19
Q

Upon whom is excise tax levied?

A

Producers

Importers

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20
Q

Who pays excise tax?

A

VAT taxpayers

Non-VAT taxpayer

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21
Q

What is specific tax (per unit tax) based on?

A

Weight or volume capacity

Any other physical unit of measurement

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22
Q

What is ad valorem tax imposed on?

A

Selling price and other specified value

23
Q

At what rate are specific sin taxes now indexed to inflation?

A

4% per annum

24
Q

What is the basis for ad valorem tax on locally produced goods?

A

Gross selling price
or
Production costs + Costs to sell + Proportionate margin of profit

25
Q

What is gross selling price?

A

The price, excluding VAT, at which goods are sold at wholesale

26
Q

What is the minimum margin?

A

Not less than 10% of production costs and costs to sell

27
Q

The ad valorem excise tax (based on gross selling price) shall be computed as:

A 
Wholesale invoice price
Divide by: 112%
= Wholesale price
Multiply by: [ad valorem excise tax rate]
= Excise tax
28
Q

The ad valorem excise tax (based on total cost) shall be computed as:

A 
Production costs
\+ Costs to sell
= Total costs
\+ Minimum margin (10%)
= Tax base
Multiply by: [ad valorem tax rate]
= Excise tax
29
Q

What is the basis for ad valorem tax on imported goods?

A

General rule:

Same rates and basis of excise taxes applicable to locally manufactured articles

30
Q

For imported goods, the computed excise tax is included in the computation for

A

Customs duties

VAT on importation

31
Q

Are importation of products into tax and duty-free shops, Freeport zones, and special economic zones subject to excise taxes?

A

Yes, except for
Products subject to sin taxes
Vehicles not exclusively used within ecozones

32
Q

Are subsequent sales of sin products exempt from excise tax?

A

Yes, because the tax was already paid at the point of importation.

33
Q

What may excise tax paid on exported goods be claimed as?

A

Tax refund or tax credit, except for excise tax on mineral products, except coal and coke

34
Q

What is net retail price (NRP)?

A

Price at which distilled spirits are sold on retail in at least five major supermarkets in the region

35
Q

What does a proof mean?

A

50% alcohol content

36
Q

What does 70 proof mean?

A

70/2 or 35% alcohol content

37
Q

Examples of Distilled Spirits

A 
Whisky
Brandy
Rum
Gin
Vodka
Other similar products or mixtures
38
Q

The excise tax (on distilled spirits) shall be computed as:

A

Total alcohol content in liters (alcohol content x liters per bottle x number of bottles produced)
Multiply by: 2
= Total proof liters
Multiply by: [specific tax]
= Total specific tax
Add: [Ad valorem tax (bottles produced x net retail price)]
= Total excise tax

39
Q

Which fortified wines shall be taxed as distilled spirits?

A

Fortified wines containing MORE THAN 25% of alcohol

40
Q

The excise tax (on wines) shall be computed as:

A 
Cases produces
Multiply by: [Bottles per case]
= Total bottles
Multiply by: Liters per bottle
= Total liters
Multiply by: [specific tax]
Add: [Total excise taxes from fortified wines > 50 proof]
= Total excise tax
41
Q

Are sparking wines / champagnes with alcoholic content > 25% taxed as distilled spirits?

A

No, the excise tax on champagne applies regardless of proof.

42
Q

Examples of fermented liquors

A

Beer, lager beer, ale, porter, and similar products,

except tuba, basi, tapuy, and similar products

43
Q

Conditional tax-free removal of alcohol products

A

Denaturation of alcohol
Rectification of spirits
Removal of fermented liquors to bonded warehouses
Removal of damaged liquors

44
Q

Is the sale of lose tobacco subject to excise tax?

A

Yes, if the sale is to end users,

but no, if the sale is to manufacturers

45
Q

Are cigarette packs withdrawn for exportation subject to excise tax?

A

Yes, but the taxpayer can claim tax refund or tax credit upon showing proof of actual exportation

46
Q

Which tobacco products may be removed tax-free for agricultural or industrial use?

A

Tobacco products entirely unfit for chewing or smoking

47
Q

Are all petroleum products subject to excise tax?

A

No, petroleum products are exempt from excise tax if they are used
as raw materials in the manufacture of other petroleum products or
as fuel for power plants

48
Q

Which petroleum product can be subject to creditable excise tax?

A

Basestock (bunker fuel) in the manufacture of excisable articles and forming part thereof

49
Q

What tests are conducted/rendered in relation to the mandator marking of all petroleum products?

A

Random field test

Confirmatory test

50
Q

Petroleum products sold to the ff. are exempt from excise taxes:

A

International carriers
Entities exempted under tax treaties
Entities which are exempt from direct and indirect tax

51
Q

[General Rule] Who are the persons liable to excise tax?

A

For domestically produced excisable article: Producers

For imported excisable article: Importers

52
Q

[Exception Rule] For domestically produced excisable article, who are the persons liable to excise tax on indigenous petroleum, natural gas or liquefied natural gas?

A

For local sale: The first buyer or assignee

For export sale: The owner, lessee, concessionaire, or operator of the mining claim

53
Q

[Exception Rule] For domestically produced excisable article, who are the persons liable to excise tax on excisable article removed without payment?

A

The owner or person having possession thereof

54
Q

[Exception Rule] For imported excisable article, who are the persons liable to excise tax on excisable article removed without payment?

A

The non-exempt buyer

Consumption Taxation (1 decks)

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