What Is Excise Tax in the Philippines? Goods Covered and the BIR Form 2200 Series

Excise tax is a Philippine tax imposed on specific goods — not all goods — manufactured or produced domestically for sale, consumption, or other disposition, and on imported goods, in addition to value-added tax (VAT). It applies only to categories the law names: alcohol, tobacco, petroleum, automobiles, minerals, sweetened beverages, and cosmetic procedures. Businesses in these industries file a BIR Form 2200 series return matching their product category, separate from their regular VAT or income tax returns.

What is excise tax and why does it exist alongside VAT? #

Excise tax is a selective levy the government imposes on goods it wants to discourage, regulate, or use as a stable revenue source — layered on top of VAT, not instead of it. Per Section 129 of the National Internal Revenue Code (NIRC), as amended by the TRAIN Law (Republic Act No. 10963):

“Excise taxes apply to goods manufactured or produced in the Philippines for domestic sales or consumption or for any other disposition and to things imported as well as services performed in the Philippines. The excise tax imposed herein shall be in addition to the value-added tax imposed under Title IV.”

That last sentence is the part businesses most often miss: a product subject to excise tax still carries VAT on top of it, computed on a base that already includes the excise tax paid. This is why a bottle of spirits or a pack of cigarettes shows a much bigger jump in price than a straight VAT increase would explain — excise tax and VAT compound on each other.

What goods are subject to excise tax in the Philippines? #

Philippine excise tax covers a fixed list of categories under NIRC Title VI, not a general class of “luxury” or “sin” products decided case by case. As amended by the TRAIN Law, the covered categories are:

• Alcohol products — distilled spirits, wines, and fermented liquors.
• Tobacco products — cigarettes, cigars, and other tobacco, plus heated tobacco and vapor products.
• Petroleum products — gasoline, diesel, LPG, and related fuels.
• Automobiles — passenger cars and certain other vehicles, taxed ad valorem.
• Mineral products — locally produced or extracted metallic and non-metallic minerals.
• Sweetened beverages — added by the TRAIN Law under NIRC Section 150-B.
• Non-essential or cosmetic procedures — added by the TRAIN Law under NIRC Section 150-A, covering invasive cosmetic procedures performed purely for aesthetic reasons.

For the sweetened-beverage rules specifically, see What Is BIR Form 2200-S? Excise Tax on Sweetened Beverages Explained, and for how excise tax interacts with fuel supply-chain monitoring, see BIR Fuel Marking Program.

How is excise tax computed: specific tax vs. ad valorem tax? #

The NIRC uses two different computation methods depending on the product, and mixing them up is a common source of underpayment. Specific tax is a fixed peso amount per unit of weight, volume, or other physical measurement — for example, a set amount per liter of a distilled spirit — so the tax owed does not change with the selling price. Ad valorem tax, used for goods like automobiles and non-essential goods, is instead a percentage of the item’s value or net selling price, so the tax rises and falls with how expensive the item is.

Worked example: specific tax on a batch of spirits #

A small distillery produces and removes 2,000 liters of a distilled spirit from its bonded warehouse in a given month, and the applicable specific excise tax rate for that spirit category is ₱52.00 per proof liter (an illustrative rate for this example, not a current published figure — always confirm the current per-liter rate against the latest BIR schedule before filing). At 2,000 proof liters, the distillery’s excise tax liability for that batch is:

Because specific tax is volume-based, this liability does not change whether the distillery sells the batch at a discount or at full price — only the physical quantity removed from the place of production matters. Under Section 130 of the NIRC, this amount is generally due before the goods leave the distillery, not at the time of sale.

Which BIR Form 2200 return applies to each product category? #

The BIR Form 2200 series is the family of excise tax returns, with one form per product category so the BIR can route each filing to the right examination group. Filing the wrong variant, or filing a VAT return instead of an excise return, does not satisfy the excise tax obligation. The current forms are:

A manufacturer producing more than one covered category — for example, a company that bottles both flavored spirits and sweetened beverages — files a separate BIR Form 2200-A and BIR Form 2200-S return for each category, not one combined return.

When and where is excise tax filed and paid? #

Section 130 of the NIRC ties excise tax filing to the place of production, not to a single centralized deadline the way income tax works. A taxpayer files a separate excise tax return for each place of production, and as a general rule, tax must be paid before removing the goods from that place of production — the BIR does not allow goods to leave the factory first and settle the tax later, except where a bond is posted to defer per-removal payment. Locally produced or extracted metallic minerals are the named exception: that return is filed quarterly, within 15 days after the end of the calendar quarter, rather than per removal.

What changed recently: RR No. 18-2025 and pick-up trucks #

Excise tax rules are not static, and automobile excise tax saw a concrete change in 2025 that illustrates how exemptions can be withdrawn. RR No. 18-2025, issued August 5, 2025, amended RR No. 25-2003 and removed the long-standing excise tax exemption for pick-up trucks, effective July 1, 2025, under the CMEPA law (Capital Markets Efficiency Promotion Act). Pick-up trucks that were previously excise-tax-free now fall under the same tiered ad valorem schedule applied to other automobiles. For the full bracket table and how this affects vehicle pricing, see car excise tax and VAT rules in the Philippines.

Frequently asked questions #

What is excise tax in the Philippines? #

Excise tax is a tax imposed on specific goods manufactured or produced in the Philippines for domestic sale, consumption, or other disposition, and on imported goods, in addition to value-added tax. It is not a general sales tax — it applies only to categories the National Internal Revenue Code names, such as alcohol, tobacco, petroleum, automobiles, minerals, sweetened beverages, and cosmetic procedures.

What is the legal basis for excise tax in the Philippines? #

Excise tax is governed by Title VI of the National Internal Revenue Code (NIRC), as amended by the TRAIN Law (Republic Act No. 10963). Section 129 sets the general scope and confirms excise tax applies in addition to VAT, while later sections define the rates and rules for each covered product category.

What is the difference between specific tax and ad valorem tax? #

Specific tax is a fixed peso amount charged per unit of weight, volume, or other physical measurement, such as a set amount per liter or per pack, regardless of price. Ad valorem tax is instead a percentage of the goods’ value or selling price, so the tax amount rises and falls with the price of the item, as used for automobiles and non-essential goods.

Which BIR form is used to file excise tax? #

The BIR Form 2200 series covers excise tax, with a separate form per product category: BIR Form 2200-A for alcohol products, BIR Form 2200-AN for automobiles and non-essential goods, BIR Form 2200-C for cosmetic procedures, BIR Form 2200-M for mineral products, BIR Form 2200-P for petroleum products, BIR Form 2200-S for sweetened beverages, and BIR Form 2200-T for tobacco, heated tobacco, vapor, and novel tobacco products.

When is Philippine excise tax due? #

Under Section 130 of the NIRC, excise tax is generally due and payable before removing the goods from the place of production, and a separate excise tax return must be filed for each place of production. An exception applies to locally produced or extracted metallic minerals, where the return is filed quarterly, within 15 days after the end of the calendar quarter.

Summary #

Excise tax in the Philippines is a targeted, category-specific levy under NIRC Title VI, as amended by the TRAIN Law — it sits on top of VAT rather than replacing it, and it only reaches the goods the law names: alcohol, tobacco, petroleum, automobiles, minerals, sweetened beverages, and cosmetic procedures. Whether a specific amount per unit or an ad valorem percentage applies depends on the category, and filing runs through the matching BIR Form 2200 variant, generally paid before goods leave the place of production. Because exemptions and rates change — as the pick-up truck exemption withdrawal under RR No. 18-2025 shows — always confirm the current rate and form against the BIR website or a tax professional before filing. For category-specific deep dives, see What Is BIR Form 2200-S? Excise Tax on Sweetened Beverages Explained, BIR Fuel Marking Program, and car excise tax and VAT rules in the Philippines.