PDF Download: BIR Revenue Regulation RR 3-2018 (Tax on Tobacco Products)

James Ryan Jonas

BIR Revenue Regulations No. 3-2018

Issued on: January 5, 2018

Providing for the Revised Tax Rates on Tobacco Products Pursuant to the Provisions of Republic Act No. 10963, otherwise known as “Tax Reform for Acceleration and Inclusion (TRAIN) Law,” Amending for the Purpose Revenue Regulations No. 17-2012

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SECTION 1. SCOPE. – Pursuant to the provisions of Section 244 in relation to Section 245 of the National Internal Revenue Code of 1997 (NIRC), as amended and Section 84 of Republic Act No. 10963, otherwise known as “Tax Reform for Acceleration and lnclusion (TRAIN) Law”, these Regulations are hereby promulgated to provide for the revised tax rates on cigarettes, amending certain provisions of Revenue Regulations (RR) No. 17-2012.

SEC. 2. AMENDATORY PROVISIONS. – The provisions of Section 3 Items B(4) and B(5) of RR No. 17-2012 is hereby 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:

PRODUCTJanuary 1, 2018 until June 30, 2018July 1, 2018 until December 31, 2019January 1, 2020 until December 31, 2021January 1, 2022 until December 31, 2023January 1, 2024 onwards
Per PackPer PackPer PackPer PackEffective 1/1/2024,
(4) Cigarettes packed by handPhp 32.50Php 35.00Php 37.50Php 40.00the specific tax rate shall be increased
(5) Cigarettes packed by machinePhp 32.50Php 35.00Php 37.50Php 40.00by 4% every year therafter

SEC. 4. REPEALING CLAUSE. – All regulations, rulings or orders or portions thereof not consistent with the provisions of these Regulations are hereby revoked, repealed or amended accordingly.

SEC. 5. EFFECTIVITY CLAUSE. – These Regulations shall take effect immediately,
following its publication in a newspaper of general circulation.

Download here an official PDF copy of BIR Revenue Regulation No. 3-2018.

Source: Bureau of Internal Revenue (BIR), Department of Finance Philippines (DOF)

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James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.