President Ferdinand Marcos Jr. has signed into law Republic Act 12234, which exempts denatured ethyl alcohol from excise tax, benefiting certainJr. has signed into law Republic Act 12234, which exempts denatured ethyl alcohol from excise tax, benefiting certain personal care, cleaning, and health-related industries.
The law, which amends Section 134 and 168 of the National Revenue Code, allows the use of imported ethyl alcohol for denaturing which was previously limited to the locally produced product.
The amended section 134 also states that ethyl alcohol that are 180 degrees proof or higher or has a 90 percent alcohol volume, when suitably denatured and rendered unfit for oral intake, shall be exempted from excise tax but subject to the value added tax.
It added that the denatured alcohol shall also be taxed if it is used for motive power, or if it is deemed fit for oral intake after undergoing denaturing.
The amended Section 168 read that the denaturing of alcohol shall be undertaken in accordance with the rules and regulations to be issued by the Bureau of Internal Revenue (BIR) “which shall include the denaturant formulations to be used.”
The BIR shall monitor the denaturing process and conduct confirmatory testing of the denatured alcohol.
The enactment of eh law is expected to help lower production costs, make various products like cleaning agents and personal care items more affordable, and stimulate economic growth.
