For alcohol products, distilled spirits are now subject to an ad valorem tax equivalent to 22% of the Net Retail Price, in addition to a specific tax of PHP 74.16 per liter. Wine is imposed a specific tax of PHP 70.92 per liter.

For tobacco products, unmanufactured tobacco is taxed at PHP 2.92 per kilogram, while heated tobacco products are subject to an excise tax of PHP 37.63 per pack of 20 units.

For vapor products, nicotine salt or salt nicotine products are taxed at PHP 69.46 per 10 milliliters, while conventional freebase or classic nicotine products carry an excise tax of PHP 60.20 per milliliter.

Due to inherent system limitations, MISTG Memo No. 01-2026 said the computation of the ad valorem tax applicable to distilled spirits and cigars will be performed manually and as such, tax is determined based on the NRP of the product.

Moreover, the specific tax rate for vapor products depends on the specific nicotine category.

All importations, declarations, and customs assessments covering the above products and processed on or after January 15, 2026 are subject to the updated excise tax rates. Importers, customs brokers, and other stakeholders are advised to ensure that declarations are accurate and compliant with the revised rates to avoid delays, reassessments, or penalties.

The Bureau emphasized that the timely integration of the new rates into the E2M System supports efficient revenue collection and strengthens compliance with national tax laws.

The BOC reiterated its commitment to the faithful implementation of tax reforms and encouraged stakeholders to coordinate with concerned customs offices for further clarification or guidance.