BIR Released Tax Guidelines on Sugar Sweetened Beverages

The Bureau of Internal Revenue (BIR) has released the guidelines for the imposition of excise tax on sugar-sweetened beverages, pursuant to the Tax Reform for Acceleration and Inclusion (TRAIN) Act. The BIR issued Revenue Regulations 20-2018, dated July 25, 2018 and signed by Finance Secretary Carlos Dominguez and Internal Revenue Commissioner Caesar Dulay, prescribing the implementing rules and guidelines on sugar-sweetened beverage tax. 

Beverages containing purely coconut sap sugar and purely steviol glycosides are exempt from the excise tax. The issuance also exempts all milk products; soymilk or flavored soymilk; 100 percent natural fruit juices; 100 percent natural vegetable juices; meal replacement and medically indicated beverages; and ground coffee, instant soluble coffee and pre-packaged powdered coffee. 

Under the guidelines, beverages using purely caloric sweeteners, purely non-caloric sweeteners or a mix of both should be levied an excise tax rate of P6 per liter of volume capacity. Drinks with purely high fructose corn syrup or in combination with any caloric or non-caloric sweetener are also imposed an excise tax rate of P12 per liter.