The Ultimate Guide About Excise Tax Philippines

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. 

excise tax PHILIPPINES

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 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

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

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 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

Mineral Products

What Are The Tax Rates Of Goods And Products Subjected To Excise Tax Philippines? 

Alcoholic Beverages

1. Distilled Spirits

Excise Tax Due =  Specific tax + Ad valorem tax 
Effectivity Date  Specific tax (per proof liter) Ad valorem tax (based on the net retail price per proof)
January 1, 2023 59.00 22%

2. Fermented Liquors

Date of effectivity Specific tax (per liter)
January 1, 2023 41.00

3. Wines

Date of effectivity Specific tax (per liter)
Sparkling wines and champagne where the NRP per bottle of 750ml:

  • Less than or equal 500
  • More than 500

Carbonated wines and still wines containing less than or equal to 14% of alcohol by volume

Carbonated wines and still wines containing more than 14% but less than 25% of alcohol by volume





January 1, 2023 59.55

Tobacco Products, Cigarettes, and Cigars

1. Tobacco Products

Date of effectivity Quantity Excise tax
January 1, 2023 Per pack of 20 units or packages of less than 20 units 32.50

2. Cigarettes and Cigars

Excise Tax Due = Ad valorem tax plus + Specific tax plus
Product Type Date of effectivity Ad valorem tax Specific tax
Cigar January 1, 2023 20% 7.38


Product Type Date of effectivity Quantity Excise tax
Cigarettes packed by hand January 1, 2023 Per pack of 20 units or packages of less than 20 units packed by hands 60.00
Cigarettes packed by machine January 1, 2023 Per pack of 20 units or packages of less than 20 units packed by machine 60.00

Petroleum Products

Product Type Date of effectivity Excise tax rate
Lubricant substances January 1, 2020 10%
Refined gas 10%
Petroleum jelly and wax 10%
Alcohols used for enhancing propulsion 10%
Asphalts 10%
Naphtha 10%
Premium gas 10%
Kerosene 5%
Diesel and other comparable fuels 6%
Fuel for jet engines 4%
Fuel for bunkers 6%
LP gas 3%


Excise tax rate
Cost of production or importation for vehicles up to ₱600,000 4%
Vehicles costing over 600,000 but less than1 million 10%
Vehicles costing over 1 million but less than 4 million 20%
Vehicles costing over 4 million 50%

Non-essential Goods

Product Type Date of effectivity Excise tax rate
Jewelry, perfumes 2023 onwards 20-25%
Yachts and other watercrafts 20-25%

Mineral Products

Product Type Date of effectivity Excise tax rate
Coke and coal January 1, 2020, onwards 150.00
Mineral metals 4%
Resources for mining and non-metal minerals 4%
Domestic petroleum 6%


This article has provided the fullest information on the excise tax Philippines. They include tobacco, cigarettes, cigars, alcoholic drinks, petroleum, mineral products, cars, and non-essential goods. 

The Philippine government taxed these goods at different tax rates, which are listed in detail above. Hopefully, you’ll find it useful for your reference and businesses.

See also: The Ultimate Guide Of Income Tax Refund Philippines

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