Revenue Regulations No. 3-2018 revised the tax rates on tobacco products according to the TRAIN Law by amending Sections 3(B)(4) and 3(B)(5) of RR No. 17-2012. The amendments increase the excise tax per pack of hand-packed and machine-packed cigarettes annually from January 2018 to January 2024, after which the tax will increase 4% every year.
Revenue Regulations No. 3-2018 revised the tax rates on tobacco products according to the TRAIN Law by amending Sections 3(B)(4) and 3(B)(5) of RR No. 17-2012. The amendments increase the excise tax per pack of hand-packed and machine-packed cigarettes annually from January 2018 to January 2024, after which the tax will increase 4% every year.
Revenue Regulations No. 3-2018 revised the tax rates on tobacco products according to the TRAIN Law by amending Sections 3(B)(4) and 3(B)(5) of RR No. 17-2012. The amendments increase the excise tax per pack of hand-packed and machine-packed cigarettes annually from January 2018 to January 2024, after which the tax will increase 4% every year.
3-2018 issued on January 15, 2018 provides the revised tax
rates on Tobacco Products pursuant to the provisions of Republic Act No. 10963 (Tax Reform for Acceleration and Inclusion or TRAIN Law), amending for the purpose Revenue Regulations (RR) No. 17-2012. The provisions of Section 3 Items B(4) and B(5) of RR No. 17-2012 is amended as follows:
“SEC. 3. REVISED RATES AND BASES OF THE SPECIFIC TAX. – There shall be levied, assessed and collected an Excise Tax on Tobacco Products, in accordance with the following schedule:
DATE OF EFFECTIVITY OF TAX RATES
January 1, July 1, 2018 January 1, January 1, January 1, PRODUCT 2018 until until 2020 until 2022 until 2024 onwards June 30, December December December 2018 31, 2019 31, 2021 31, 2023 xxx B. TOBACCO PRODUCTS xxx Per Pack Per Pack Per Pack Per Pack Effective (4) Cigarettes packed by Php 32.50 Php 35.00 Php 37.50 Php 40.00 1/1/2024, the hand specific tax (5) Cigarettes packed by Php 32.50 Php 35.00 Php 37.50 Php 40.00 rate shall be machine increased by 4% every year thereafter xxx