1.

Removal of automobile for test run shall be subject to excise tax if not returned on the
same day.
T pp.397

2. Sale of gold to jewelers and collectors by gold traders are subject to 4% excise tax.
T pp.390

3. As a general rule, excise tax is imposed on goods domestically produced or imported

4. Imported excisable goods are taxable to excise tax at the point of sale.
F pp.375

5. 50% ad valorem tax is imposed jewelry.

6. Excise tax is a direct tax.

7. Fermented liquors include beer, lager beer, ale, porter & similar products, including
tuba, basi and tapuy.
F pp.380

8. Lorna T. had her liposuction procedure done by Dr. Bernal at UCMed. The hospital
charged P30,000 for supplies and facilities aside from the P75,000 professional fee of
Dr. Bernal which is inclusive of both VAT & excise tax. How much is the amount to be
collected from Lorna T.?
106,500

9. Hospital services are exempt from VAT, except those rendered by professionals.
T pp.401

10. Excise tax is a revenue tax with a regulatory purpose as it intends to curb health
risks, social, moral or environmental wrongs while business tax is purely levied to raise
revenue.
T pp.371

11. Locally produced goods imposed w/ad valorem tax is subject to tax on gross selling
price (wholesale).
T pp.371

12. Gateway, Inc. imported the following luxury vehicles and vessels:
Non-essential goods (e.g., yachts) are subject to excise tax of 20% on landed costs,
while hybrid sports cars are at a rate of 50% of 50% for those with selling price above
P4M.How much is excise tax due?
9,180,000
13. The importation of products into duty free shops, freeport zones & special economic
zones are subject to excise tax as a rule.
F pp.395 OR 376

14. Cigars are subject only to specific tax while cigarettes are subject to both specific
and ad valorem tax.
F pp.382

15. Pure electric vehicles shall be subject to excise tax.

16. Coca Cola Bottlers Philippines is about to remove 1,700 cases of Super Cola using
high fructose corn syrup and non caloric sweeteners. It sold 1,500 cases out of those
removed. Each case contains 12 bottles of 2 liters each. Applicable rate is P12/liter.
How much is excise tax?
489,600

17. As an environmental tax, excise tax is imposed to restrain luxury or extravagance.

18. Petroleum products used as raw materials in the manufacture of other petroleum
products or as fuel for power plants are not taxable.
T pp.384, SLIDE 42

19. As to amount imposed, excise taxes in the Philippines are all specific in nature.

20. All taxes on petroleum products are specific taxes.

21. Manny imported an automobile for personal use which had the following costs:
The importation is subject to 30% customs duties & 20% excise tax. How much is
excise tax?
797,500

22. Don Juan is an operator of a small-scale mining claim. His groups produced a total
of 3,400 grams of gold nuggets and discs w/specific gravity of 90% purity. He sold the
gold to BSP. Upon final assay, the BSP made a final settlement as follows:
 If applicable rate is 4%, how much is excise tax?
14,960

23. Sweetened milk products are subject to excise tax.

25. Yacht and sports car are both subject to excise tax using the rates applicable to
automobiles.
F pp.397

26. Importation of automobiles are subject to excise tax whether for use only inside
ecozones or outside ecozones.
F pp.395

27. Should gross selling price be less than the cost of manufacture & selling expenses,
a proportionate profit margin of not less than 10% shall be added to such costs &
expenses to arrive at tax base for excise tax.
T pp.372

28. Fortified wines containing more than 25% of alcohol shall be taxed as distilled
spirits.
T pp.379

29. An excise tax of 5% on gross receipts (net of VAT & excise) derived from the
performance of invasive cosmetic procedure, surgeries & body enhancement.
T pp.398

30. Imported vehicles not for sale shall be subject to excise tax on the total landed
value, including transaction value, customs duty and all other charges.
T pp.394

31. Dental gold or gold alloys & other precious metals used in filling, mounting or fitting
of the teeth are subject to excise tax.
F pp.397

32. Petroleum products sold to international carriers are subject to excise tax.
F pp.386

33. Manny imported an automobile for personal use which had the following costs:
The importation is subject to 30% customs duties & 20% excise tax. How much is VAT
on importation?
574,200

34. Excise tax on distilled spirits is a mixture of ad valorem and specific rates.
T pp.378, SLIDE 23

35. Cosmetic surgery and mineral products are subject to excise tax at the point of sale.
T pp. 386
36. Under RA 11256, small scale miners and accredited traders who are selling gold to
BSP are exempt from income tax, excise tax & business tax.
T SLIDE 48

37. As a sin tax, excise tax is imposed on products known to pose health risk.
T pp.370

38. Excise tax is collected before goods are removed from point of production or before
removal of goods from Customs warehouse.
T? SLIDE 42

39. VAT and excise tax are mutually exclusive.

40. Sweetened beverages consumed within the place of production are not subject to
payment of excise tax.
F SLIDE 88

41. Ad valorem tax on manufactured or imported automobiles with selling price of over
P4M is subject to excise tax of 4%.
F SLIDE 51

42. Autoworld, an ecozone locator, sold 2 company cars to Cebu Company for
P945,000 each. Details about the two cars were as follows:If applicable excise rate is
20% for both cars, how much is total excise tax due?
520,800

43. Zion Company produced 25,000 units of excisable goods. The goods are delivered
to consignees who sell them at P1,000 (VAT-inclusive) a unit to customers. The
consignees take 20% of the retail sales and 16% of wholesales. Consignees are
allowed to sell the units at P900 (VAT-inclusive) a unit at a minimum wholesale value of
100 units. The excisable goods are subject to 15% ad valorem tax. How much is excise
tax?
3,013,393

44. Cana Brewery produces its famous distilled spirits of 80 proof 750ml-bottle sold at
net retail price of P100/bottle. During the period, it produced a total of 15,000 bottles.
Applicable excise taxes are: Specific - P23.40 per proof liter; Ad valorem -20% of net
retail price (NRP).
510,600

45. Salem Company produced 1,000 units of an excisable goods that has a total
wholesale value of P5,600,000, inclusive of VAT. If sold retail, the goods would earn
P7,000,000. The goods are subject to a 20% ad valorem tax. How much is excise tax?
1,000,000
46. Sweetened juice drinks are subject to excise tax.
T SLIDE 79

47. If conditions are met, sweetened beverages intended for export may be removed
from the place of production without prepayment of excise tax.
T SLIDE 89

48. In the Philippines, excise tax applies only to certain physical goods and never for the
sale of services.
F pp.368

49. When automobiles imported by exempt persons are subsequently sold to taxable
persons, the same shall be subject to excise tax at the lower of the consideration paid
or depreciated cost.
F SLIDE 62

50. Transfer of semi-processed goods such as syrups, puree, concentrates sold to fast
food chains where they are mixed with carbonated water & sold to fast food chains are
subject to excise tax.
T SLIDE 88