Section 24
SEC. 24. Section one hundred and thirty-seven (b) of the same Act is hereby amended to read as follows: "SEC. 137. (a) * * * "(b) Cigarettes— "(1) On cigarettes containing Philippine-grown flue cured and/or redried Virginia type tobacco of seventy-one millimeters or less in length, on each thousand, eight pesos: Provided, That if the length exceeds seventy-one millimeters, the tax shall be increased by one hundred per centum. "(2), On cigarettes containing Philippine-grown Virginia type tobacco blended with imported Virginia type tobacco and/or flue-cured tobacco of seventy-one millimeters or less in length, on each thousand, twelve pesos: Provided, That if the length exceeds seventy-one millimeters, the tax shall be increased by one hundred per centum. "(3) On cigarettes made of leaf tobacco other than Philippine-grown flue-cured and/or re-dried Virginia type tobacco and imported Virginia type tobacco of eighty-one millimeters or less in length, packed in thirty cigarettes or more per pack, on each thousand, two pesos and fifty centavos: Provided, That if the length exceeds eighty-one millimeters, the tax shall be increased by fifty per centum.; Provided, further, That if the length exceeds one hundred twenty-one millimeters, on each thousand the tax shall be increased by one hundred per centum. If the cigarettes under this subparagraph are packed in twenty cigarettes or less per pack and the length does not exceed eighty-one millimeters, on each thousand the tax shall be three pesos: Provided, That if the length exceeds eighty-one millimeters, the tax shall be increased by fiftyper centum.: Provided, further, That if the length exceeds one hundred twenty-one millimeters, the tax shall be increased by one hundred per centum. "All duly registered and/or existing brands of cigarettes at the time of the approval of this Act, falling under subparagraphs (1) and (2), paragraph (6) of this section, shall not be allowed to be classified under sub-paragraph (3) hereof, regardless of the kind of leaf tobacco used. "(4) If the cigarettes are mechanically wrapped or packed or are manufactured purely out of imported leaf tobacco, the tax shall be increased by one hundred and twenty per centum per thousand cigarettes, "Cigarettes shall be considered as mechanically wrapped or packed when at any stage of the wrapping or packing, a machine or any mechanical contrivance shall have been used. "Any provision of Republic Act Numbered Twelve hundred eighty-seven to the contrary notwithstanding, any process of chemical treatment of tobacco leaves shall not be allowed. "The maximum price at which the various classes of cigars are sold at wholesale in the factory or in the establishment of the importer to the public shall determine the rate of the tax applicable to such cigars; and if the manufacturer or importer also sells, or allows to be sold, his cigars at wholesale in another establishment of which he is the owner or in the profits of which he has an interest, the maximum sale price in such establishment shall determine the rate of the tax applicable to the cigars therein sold: Provided, however, That when such maximum wholesale price is less than the cost of manufacture or importations plus all expenses incurred until the cigars are finally sold by the manufacturer or importer, such cost plus expenses shall determine the amount of tax to be applied. "Every manufacturer or importer of cigars shall file with the Commissioner of Internal Revenue on the date or dates designated by the latter, a sworn statement showing the maximum wholesale prices of cigars, together with the cost of manufacture or importation plus expenses incurred or to be incurred until the cigars are finally sold and it shall be unlawful to sell said cigars at wholesale at a price in excess of the one specified in the statement required by this Title without previous written notice to said Commissioner of Internal Revenue. In the case of imported cigars, the sworn statement required herein shall be accompanied by verified sales invoices of the manufacturers of the cigars as well as the consular invoice issued by a Philippine Consul, should one be available at the place of origin or shipment. "Every manufacturer or importer of cigarettes shall file with the Commissioner of Internal Revenue, on the date or dates designated by the latter, a sworn statement showing the quantity and value of sundried, flue-cured and/or re-dried or imported Virginia-type tobacco or other types of tobacco purchased, imported or manufactured; the brand or brands of cigarettes manufactured or imported; their corresponding length in millimeters, whether containing flue-cured tobacco; whether the cigarettes are mechanically wrapped or packed; and indicating the names and address of the person or persons from which purchased. Every producer of Philippine-grown sun-dried Virginia tobacco or Philippine-grown flue-cured and/or re-dried Virginia tobacco shall, likewise file with the Commissioner of Internal Revenue a statement of the quantity and value of sun-dried or flue-cured and/or re-dried Philippine-grown Virginia type tobacco produced by him and the names and addresses of his purchasers or the products. In the case of imported cigarettes, the sworn statement required herein shall, in addition to the above information, be accompanied by a verified commercial invoice of the manufacturer of the cigarettes as well as the consular invoice issued by a Philippine Consul, if any, containing the information that Philippine Internal Revenue strip stamps have been affixed to each and every pack of cigarettes and that such pack bears the inscription "for export to the Philippines." "If the government of a foreign country permits the revenue stamps of such country to be affixed in the Philippines to tobacco (including cigars) or snuff manufactured in the Philippines and imported into such foreign country, internal revenue stamps of the Philippines may be affixed to tobacco (including cigars) or snuff manufactured in such foreign country to be imported into the Philippines from such foreign country, under such rules and regulations as the Commissioner of Internal Revenue with the approval of the Secretary of Finance may prescribe, "Any producer, manufacturer or importer who, in violation of this section, knowingly misdeclares or misrepresents in his report the type of tobacco produced, and the tobacco contents of manufactured or imported cigarettes shall upon conviction be required to pay twice the amount of the tax evaded and punished by a fine of not less than one thousand pesos nor more than five thousand pesos and by imprisonment of not less than one year nor more than six years."