BIR: Sin taxes apply in ecozones
By DENNIS C. SERFINO, The Manila Times Reporter
The importation of tobacco and alcohol products into special economic zones is subject to the excise tax, according to a new regulation released by the Bureau of Internal Revenue.
"The provision of any special or general law to the contrary notwithstanding, the importation of alcohol or tobacco products, even if destined for tax- and duty-free shops, shall be subject to all applicable taxes, duties, charges, including excise taxes thereon," Revenue Regulation 3-2006 said.
The new regulation challenges an injunction issued in June last year by the Regional Trial Court of Olongapo City that prevented the government from implementing Republic Act 9334, which increased the excise tax on alcohol and cigarettes in Subic Bay Freeport.
The court said R.A. 7227—which stipulates that no local or national taxes should be imposed within Subic Bay Freeport except the 5-percent tax on gross income earned—should prevail over R.A. 9334.
RR 3-2006 specifies that excise taxes will be collected on alcohol and tobacco products imported into Subic Special Economic and Freeport Zone, Cagayan Special Economic Zone and Freeport, Zamboanga City Special Economic Zone and such other free ports that will be created by law.
It also said that while the importation of these so-called sin products by government-owned and -operated duty-free shops is exempt from all applicable duties, it is still subject to the excise and value-added taxes.
The excise tax is imposed on goods manufactured in or imported into the Philippines for domestic sale or consumption
The importation of tobacco and alcohol products into special economic zones is subject to the excise tax, according to a new regulation released by the Bureau of Internal Revenue.
"The provision of any special or general law to the contrary notwithstanding, the importation of alcohol or tobacco products, even if destined for tax- and duty-free shops, shall be subject to all applicable taxes, duties, charges, including excise taxes thereon," Revenue Regulation 3-2006 said.
The new regulation challenges an injunction issued in June last year by the Regional Trial Court of Olongapo City that prevented the government from implementing Republic Act 9334, which increased the excise tax on alcohol and cigarettes in Subic Bay Freeport.
The court said R.A. 7227—which stipulates that no local or national taxes should be imposed within Subic Bay Freeport except the 5-percent tax on gross income earned—should prevail over R.A. 9334.
RR 3-2006 specifies that excise taxes will be collected on alcohol and tobacco products imported into Subic Special Economic and Freeport Zone, Cagayan Special Economic Zone and Freeport, Zamboanga City Special Economic Zone and such other free ports that will be created by law.
It also said that while the importation of these so-called sin products by government-owned and -operated duty-free shops is exempt from all applicable duties, it is still subject to the excise and value-added taxes.
The excise tax is imposed on goods manufactured in or imported into the Philippines for domestic sale or consumption
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