[ REPUBLIC ACT NO. 589, September 22, 1950 ]
AN ACT TO AMEND SECTIONS ONE HUNDRED AND THIRTY-THREE, ONE HUNDRED AND THIRTY-FOUR, ONE HUNDRED AND THIRTY-FIVE, ONE HUNDRED AND THIRTY-SEVEN, ONE HUNDRED AND FORTY, AND ONE HUNDRED AND FORTY-SEVEN OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND SIXTY-SIX, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Section one hundred and thirty-three of Commonwealth Act Numbered Four hundred and sixty-six, as last amended by section one of Republic Act Numbered Two hundred and nineteen, is hereby further amended to read as follows:
Section 133. Specific tax on distilled spirits. - On distilled spirits there shall be collected, except as hereinafter provided, specific taxes as follows:
"(a) If produced from sap of the nipa, coconut, cassava, camote, or buri palm, or. from the juice, syrup, or sugar of the cane, per proof liter, sixty centavos.
"(b) If produced from any other materials, per proof liter, seven pesos.
"This tax shall be proportionally increased for any strength of the spirits taxed over proof spirits.
" 'Distilled spirits', as here used, include all substances known as ethyl alcohol, hydrated oxide of ethyl, or spirits of wines, which are commonly produced by the fermentation and subsequent distillation of grain, starch, molasses, orsugar, or of some syrup or sap, including all dilutions or mixtures; and the tax shall attach to this substance as soon as it is in existence as such, whether it be subsequently separated as pure or impure spirits, or be immediately or at any subsequent time transformed into any other substances either in process of original production or by any subsequent process.
" 'Proof spirits' is liquor containing one-half of its value of alcohol of a specific gravity of seven thousand nine hundred and thirty-nine ten-thousandths at fifteen degrees centigrade. A proof liter means a liter of proof spirits."
Section 2. Section one hundred and thirty-four of Commonwealth Act Numbered Four hundred and sixty-six, as last amended by section two of Republic Act Numbered Two hundred and nineteen, is hereby further amended to read as follows:
"Section 134. Specific tax on wines. - On wines and imitation wines there shall be collected, per liter of volume capacity, the following taxes;
"(a) Sparkling wines, regardless of proof, eight pesos.
"(b) Still wines containing fourteen per centum of alcohol or less, except those produced from casuy and duhat, seventy-five centavos.
"(c) Still wines containing more than fourteen per centum of alcohol, one peso and fifty centavos.
"Imitation wines containing more than twenty-five per centum of alcohol shall be taxed as distilled spirits."
Section 3. Section one hundred and thirty-five of Commonwealth Act Numbered Four hundred and sixty-six, as last amended by section three of Republic Act Numbered Two hundred and nineteen, is hereby further amended to read as follows:
"Section 135. Specific tax on fermented liquors. - On beer, lager beer, ale, porter, and other fermented liquors (except tuba, basi, tapuy and similar domestic fermented liquors), there shall be collected, on each liter of volume capacity, twenty centavos."
Section 4. Section one hundred and thirty-seven of Commonwealth Act Numbered Four hundred and sixty-six, asamended by section four of Republic Act Numbered Two hundred and nineteen, is hereby further amended to read as follows:
"Section 137. Specific tax on cigars and cigarettes. - On cigars and cigarettes there shall be collected the following taxes:
"(a) Cigars—
"(1) When the manufacturer's or importer's wholesale price, less the amount of the tax, does not exceed thirty pesos per thousand, on each thousand, two pesos and thirty centavos.
"(2) When the manufacturer's or importer's wholesale price, less the amount of the tax, exceeds thirty pesos but does not exceed sixty pesos per thousand, on each thousand, four pesos and sixty centavos.
"(3) When the manufacturer's or importer's wholesale price, less the amount of the tax, exceeds sixty pesos per thousand, on each thousand, seven pesos.1a⍵⍴h!1
"(B) Cigarettes—
"(1) On cigarettes wrapped in tinfoil or cellophane, or packed in cartons covered with paraffin or wax paper, when the manufacturer's or importer's wholesale price, less the amount of the tax, is five pesos or less per thousand, on each thousand, six pesos, but the tax shall be increased by one hundred per centum if the cigarettes are mechanically packed.
"(2) On cigarettes wrapped in tinfoil or cellophane, or packed in cartons covered with paraffin or wax paper, when the manufacturer's or importer's wholesale price, less the amount of the tax, exceeds five pesos but not more than six pesos per thousand, on each thousand, eight pesos, but the tax shall be increased by one hundred per centum if the cigarettes are mechanically packed.
"(3) On cigarettes wrapped in tinfoil or cellophane, or packed in cartons covered with paraffin or wax
paper, when the manufacturer's or importer's wholesale price, less the amount of the tax, exceeds six pesos per thousand, on each thousand, ten pesos, but the tax shall be increased by one hundred per centum if the cigarettes are mechanically packed.
"The maximum price at which the various classes of cigars and cigarettes are sold at wholesale in the factory or in the establishment of the importer to the public shall determine the rate of the tax applicable to such cigars and cigarettes; and if the manufacturer or importer also sells, or allows to be sold, his cigars and cigarettes at wholesale in another establishment of which he is the owner or in the profits of which he has an interest, the maximum sale price in such establishment shall determine the rate of the tax applicable to the cigars and cigarettes therein sold: Provided, however, That when such maximum wholesale price is less than the cost of manufacture or importation plus all expenses incurred until the cigars or cigarettes are finally sold by the manufacturer or importer, such cost plus expenses shall determine the amount of tax to be applied: And provided, further, That on all cigarettes of eighty millimeters or less in length not wrapped in tinfoil or cellophane nor packed in cartons covered with paraffin or wax paper, a tax of three pesos and fifty centavos per thousand shall be collected if the wholesale price, less the amount of the tax, does not exceed five pesos per thousand, and a tax of eight pesos per thousand shall be collected if the wholesale price, less the amount of the tax, exceeds five pesos per thousand, but the tax shall be increased by fifty per centum per thousand if such cigarettes are move than eighty millimeters in length. Cigarettes shall be considered as mechanically packed when at any stage of the packing, a machine or any mechanical contrivance shall have been used.
"Every manufacturer or importer of cigars and cigarettes shall file with the Collector of Internal Revenue, on the date or dates designated by the latter, a sworn statement showing the maximum wholesale prices of cigars
and cigarettes, together with the cost of manufacture or importation plus expenses incurred or to be incurred until the cigars or cigarettes are finally sold and it shall be unlawful to sell said cigars and cigarettes at wholesale at a price in excess of the one specified in the statement required by this Title without previous statement showing the maximum wholesale prices of cigars and cigarettes, together with the cost of manufacture or importation plus expenses incurred or to be incurred until the cigars or cigarettes are finally sold and it shall be unlawful to sell said cigars and cigarettes at wholesale at a price in excess of the one specified in the statement required by this Title without previous written notice to said Collector of Internal Revenue. In the case of imported cigars and cigarettes, the sworn statement required herein shall be accompanied by verified sales invoices of the manufacturers of the cigars and cigarettes as well as the consular invoice issued by a Philippine Consul, should one be available at the place of origin or shipment."
Section 5. Section one hundred and forty of Commonwealth Act Numbered Four hundred and sixty-six, as last amended by section nine of Republic Act Numbered Fifty-six, is hereby further amended to read as follows:
"Section 140. Specific tax on firecrackers. - On all firecrackers, there shall be collected for each kilogram a tax of five pesos."
Section 6. Section one hundred and forty-seven of Commonwealth Act Numbered Four hundred and sixty-six, as last amended by section thirty of Republic Act Numbered Fifty-six, is hereby further amended to read as follows:
"Section 147. Specific tax on playing cards. - (a) On each pack of cards containing not more than sixty cards, there shall be collected a tax of three pesos: Provided, however, That when the size of playing cards is two and one-half centimeters by six centimeters or less, there shall be collected a tax of three pesos, on each pack containing not more than sixty cards.
"(b) On each pack containing more than sixty cards, there shall be collected the tax established in subsection (a) and a proportionate additional tax on the number in excess of sixty."
Section 7. This Act shall take effect upon its approval but, unless otherwise expressly extended by Congress, the increased rates of tax provided for in this Act shall continue in force and effect only until December thirty-first, nineteen hundred and fifty-two, after which period the actual rates of tax shall again be in force.
Approved, September 22, 1950.
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