AN ACT RESTRUCTURING THE EXCISE TAX ON ALCOHOL AND TOBACCO PRODUCTS BY AMENDING SECTIONS 141, 142, 143, 144, 145, 8, 131 AND 288 OF REPUBLIC ACT NO. 8424. OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED BY REPUBLIC ACT NO. 9334, AND FOR OTHER PURPOSES

Fifteenth Congress

Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-three day of July, two thousand twelve.

REPUBLIC ACT NO. 10351

AN ACT RESTRUCTURING THE EXCISE TAX ON ALCOHOL AND TOBACCO PRODUCTS BY AMENDING SECTIONS 141, 142, 143, 144, 145, 8, 131 AND 288 OF REPUBLIC ACT NO. 8424. OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED BY REPUBLIC ACT NO. 9334, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Section 141 of the National Internal Revenue Code of 1997, as amended by Republic Act No. 9334, is hereby further amended to read as follows:

Section 2. Section 142 of the National Internal Revenue Code of 1997, as amended by Republic Act No. 9334, is hereby further amended to read as follows:

Section 3. Section 143 of the National Internal Revenue Code of 1997, as amended by Republic Act No. 9334, is hereby further amended to read as follows:

Section 4. Section 144 of the National Internal Revenue Code of 1997, as amended by Republic Act No. 9334, is hereby further amended to read as follows:

Section 5. Section 145 of the National Internal Revenue Code of 1997, as amended by Republic Act No. 9334, is hereby further amended to read as follows:

Section 6. Section 8 of Republic Act No. 8424 or the National Internal Revenue Code, as amended, is hereby further amended to read as follows:

Section 7. Section 131, Subsection A of the National Internal Revenue Code of 1997, as amended by Republic Act No. 9334, is hereby further amended as follows:

Section 8. Section 288, subsections (B) and (C) of the National Internal Revenue Code of 1997, as amended by Republic Act No. 9334, is hereby further amended to read as follows:

Section 9. Transitory Provision. – A special financial support for displaced workers in the alcohol and tobacco industries shall be allocated and included in the appropriations under the Department of Labor and Employment (DOLE) to finance unemployment alleviation program; and to the Technical Education and Skills Development Authority (TESDA) to finance the training and retooling programs of displaced workers, to be included in the General Appropriations Acts for the Fiscal Years 2014 to 2017.

Section 10. Annual Report. – The Department of Budget and Management (DBM), the Department of Agriculture (DA), the Department of Health (DOH) and the Philippine Health Insurance Corporation (PhilHealth) shall each submit to the Oversight Committee, created under Republic Act No. 8240, a detailed report on the expenditure of the amounts earmarked in this Section on the first week of August of every year. The reports shall be simultaneously published in the Official Gazette and in the agencies’ websites.

Section 11. Congressional Oversight Committee. – The composition of the Congressional Oversight Committee, created under Republic Act No. 8240, shall include the Agriculture and Health Committee Chairpersons of the Senate and the House of Representatives as part of the four (4) members to be appointed from each House.

Upon receipt of the annual reports from the DBM, DA, DOH, DOLE, PhilHealth and TESDA, the Committee shall review and ensure the proper implementation of this Act as regards the expenditures of the earmarked funds.

Starting the third quarter of Calendar Year 2016, the Committee is mandated to review the impact of the tax rates provided under this Act.

Section 12. Implementing Rules and Regulations. – The Secretary of Finance shall, upon the recommendation of the Commissioner of Internal Revenue, and in consultation with the Department of Health, promulgate the necessary rules and regulations for the effective implementation of this Act not later than one hundred eighty (180) days upon the effectivity of this Act.

Section 13. Separability Clause. – If any of the provisions of this Act is declared invalid by a competent court, the remainder of this Act or any provision not affected by such declaration of invalidity shall remain in force and effect.

Section 14. Repealing Clause. – All laws, decrees ordinances, rules and regulations, executive or administrative orders and such other presidential issuances that are inconsistent with any of the provisions of this Act are hereby repealed, amended or otherwise modified accordingly.

Section 15. Effectivity. – This Act shall take effect upon its publication in a newspaper of general circulation.

Approved,

This Act which is a consolidation of House Bill No. 5727 and Senate Bill No. 3299 was finally passed by the House of Representatives and the Senate on December 11, 2012.

Approved: DEC 19 2012

(Sgd.) BENIGNO S. AQUINO III
President of the Philippines