Are you curious about the excise tax Philippines? Do you want to know the tax rate of products in this country? Our article will provide detailed information on which products and goods are taxed in the Philippines.

The Philippines has taxes on several fields of goods and items. Some products are significantly taxed, while others are less. To know exactly about the goods and tax rate for each, let’s scroll down and read the full article!

Table of Contents

What Is Excise Tax Philippines?

Generally, a country imposes an excise tax on the manufacture, distribution, or consumption of certain goods. In the Philippines, products made or produced domestically for national purposes, such as sales, usage, and disposals, are taxed at different rates.

Besides, the Philippines government put a certain tax percentage on imported goods, meaning that domestic consumers have to pay a higher price to buy products from other countries.

There are two types of excise tax, including specific tax and ad valorem tax. A specific tax depends on the weight, volume, and other physical measurement units to determine the excise tax of a product. On the other hand, an ad valorem tax is a dependent excise tax levied on the products’ selling price or other items’ defined value.

What Goods And Products Are Subject To Excise Tax In The Philippines?

Alcoholic Beverages

Alcoholic drinks contain distilled spirits, wines, and fermented liquors. Distilled spirits include alcoholic beverages made by distillation, such as whiskey, rum, brandy, gin, vodka, and those made from coconut, syrup, sugar cane, cassava, etc.

According to the Philippine government, beer, porter, and other fermented drinks are considered fermented liquors, which have excise tax. However, domestically made fermented beverages, like basi and domtuba, aren’t taxed.

Similar to distilled alcoholic beverages, wines are also taxed in the Philippines. You will need to distinguish between distilled spirits and wines.

The remarkable examples of wines are champagnes and sparkling wines. Fortified and still wines are also listed in this group. Generally, wines are fermented alcoholic beverages made from fruit juice or other fruit products that use fermentation.

See also: Estate Tax Philippines – Everything you need to know

Tobacco Products, Cigarettes, and Cigars

Shag (rolling or loose tobacco), partially or entirely produced by machines, and smokeless tobacco are all considered tobacco products.

Meanwhile, cigarettes include manufactured cigarettes, hand-rolled cigarettes, and cigars. They are all taxed in the Philippines, and businesses have to pay a tax if they sell this kind of product.

Petroleum Products

In the Philippines, petroleum products have excise tax involving many fuel types. They are grease and lubricant substances, refined gas, petroleum jelly and wax, naphtha, premium gas, fuel for jet engines, diesel and other comparable fuels, kerosene, LP gas, fuel for bunkers, and asphalts.

The government also levied an excise tax on alcohol for enhancing propulsion, besides products made from petroleum.

Automobiles

Automobiles and motor vehicles are other fields taxed as they’re imported to the Philippine market for domestic consumption. In 2023, the Bureau of Internal Revenue (BIR) anticipates receiving ₱3.2 billion in excise duties from imported cars.

Non-essential Goods

As the name states, non-essential goods are mostly purchased for personal habits, like collection, entertainment, etc. They include jewelry, perfumes, yachts, and other watercraft used for enjoyment or athletic endeavors.

Mineral Products