The Bureau of Internal Revenue (BIR) estimates the tax liability from the seized excisable perfume products during its recent nationwide raid reached P604.3 million.
The BIR captured more than 390,000 bottles of excisable perfume and toilet water products during its countrywide raid last September 27 and 28.
In a statement yesterday, BIR commissioner Romeo Lumagui Jr. said more than 400 factories, warehouses and stores were raided due to violation of excise tax regulations.
A 20 percent excise tax is slapped on perfume. For locally-produced , the rate is 20 percent of wholesale price net of excise and valued added taxes. For imports, the rate is 20 percent based on value of imports
“Big or small, every business has to comply with excise tax regulations,” Lumagui said.
Revenue Regulations No. 9-2023 provides that every person, whether individual or juridical entity, who intends to engage in business as a manufacturer, producer or brand owner availing the services of a toll manufacturer, subcontractor or import-dealer of perfumes and toilet waters shall file an application in writing for a permit to engage in such business with the commissioner of Internal Revenue through his duly authorized representative.
Whether the individual or entity is a local manufacturer/producer, brand owner engaging toll manufacturers or subcontractors, importer, or toll manufacturer or subcontractor, permits should be secured from the Excise Large Taxpayers Regulatory Division, the BIR said.
“A Permit to Operate for Excise Tax Purposes, is a separate requirement from a BIR Certificate of Registration,” the agency added.
The tax bureau said the manufacturer, importer, owner or person having possession of the excisable articles can be made liable for lack of permit to operate, failure to file certain information returns and/or unlawful possession or removal of articles subject to excise tax without payment of the tax under the National Internal Revenue Code, as amended.
