Republic Act No. 8184
AN ACT RESTRUCTURING THE EXCISE TAX ON
PETROLEUM PRODUCTS, AMENDING FOR THE PURPOSE PERTINENT SECTIONS OF THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED
SECTION
1. Section 145 of the National Internal Revenue
Code, as amended, is hereby further amended to read as follows:
“SEC.
145. Manufactured
oils and other fuels. – There shall
be collected on refined and manufactured mineral oils and motor fuels, the
following specific taxes which shall attach to the goods hereunder enumerated
as soon as they are in existence as such:
“(1)
Lubricating oils and greases including but not limited to base stock for lube
oils and greases, high vacuum distillates, aromatic extracts and other similar
preparations, and additives for lubricating oils and greases whether such
additives are petroleum based or not, per liter of volume capacity, Four pesos
and fifty centavos (P 4.50): Provided, however, That the specific
taxes paid on the purchased feedstock (bunker) used in the manufacture of
excisable articles and forming part thereof shall be credited against the
specific tax due there from: Provided, further, That lubricating oils
and greases produced from base stocks and additives on which the specific tax
had already been paid shall no longer be subject to specific tax;
“(2) Processed gas, per liter of volume capacity, Five centavos (P 0.05);
“(3) Waxes and petrolatum, per kilogram, Three pesos and fifty centavos (P
3.50);
“(4) On denatured alcohol to be used for motive power, per liter of volume
capacity, Five centavos (P 0.05): Provided, That unless otherwise provided
by special laws, if the denatured alcohol is mixed with gasoline, the specific
tax on which has already been paid, only the alcohol content shall be subject
to the tax herein prescribed. For
purposes of this subsection, the removal of denatured alcohol of not less than
one hundred eighty degrees proof (ninety percent absolute alcohol) shall be
deemed to have been removed for motive power, unless shown otherwise;
“(5) Naphtha, regular gasoline and other similar products of distillation, per
liter of volume capacity, Four pesos and eighty centavos (P 4.80): Provided,
however, That naphtha, when used as a raw material in the production of
petrochemical products or as replacement fuel for natural gas-fired combined
cycle power plant, in lieu of locally-extracted natural gas during the
non-availability thereof, subject to the rules to be promulgated by the
Secretary of Energy
in consultation with the
Secretary of Finance, per liter of
volume capacity, Zero (P 0.00): Provided, further, That the byproduct
including fuel oil, diesel fuel, kerosene, pyrolysis, gasoline, liquefied petroleum
gases and similar oils having more or less the same generating power, which are
produced in the processing of naphtha into petrochemical products shall be
subject to the applicable specific tax specified in this section, except when
such byproducts are transferred to any of the local oil refineries through
sale, barter, or exchange, for the purpose of further processing or blending
into finished products which are subject to specific tax under this section;
“(6) Leaded premium gasoline, per liter of volume capacity, Five pesos and
thirty-five centavos (P 5.35); unleaded premium gasoline, per liter of volume
capacity, Four pesos and thirty-five centavos (P 4.35);
“(7) Aviation turbo jet fuel, per liter of volume capacity, Three pesos and
sixty-seven centavos (P 3.67);
“(8) Kerosene, per liter of volume capacity, Sixty centavos (P 0.60): Provided,
That kerosene, when used as aviation fuel, shall be subject to the same tax on
aviation turbo jet fuel under the preceding paragraph (7), such tax to be assessed
on the user thereof;
“(9) Diesel fuel oil, and on similar fuel oils having more or less the same
generating power, per liter of volume capacity, One peso and sixty-three
centavos (P 1.63);
“(10) Liquefied petroleum gas, per liter, Zero (P 0.00): Provided,
That liquefied petroleum gas used for motive power shall be taxed at the
equivalent rate as the specific tax on diesel fuel oil;
“(11) Asphalts, per kilogram, Fifty-six centavos (P0.56); and
“(12) Bunker fuel oil, and on similar fuel oils having more or less the same
generating power, per liter of volume capacity, Thirty centavos (P 0.30).”
SEC. 2. Subparagraph (2) of paragraph
(a) of Section 151 of the National Internal Revenue Code, as amended, is hereby
further amended to read as follows:
“(2)
On all non-metallic minerals and quarry resources, a tax of two percent (2%)
based on the actual market value of the gross output thereof at the time of
removal, in the case of those locally extracted or produced; or the value used
by the
Bureau of
Customs in determining tariff and customs duties, net of excise tax
and value-added tax, in the case of importation.”
Notwithstanding the provision of subparagraph (4) of paragraph (a) of Section
151, locally extracted natural gas and liquefied natural gas shall be taxed at
the rate of two percent (2%).
SEC. 3. Subparagraph (4) of paragraph
(a) of Section 151 of the National Internal Revenue Code, as amended, is hereby
further amended to read as follows:
“(4)
On indigenous petroleum, a tax of three percent (3%) of the fair international
market price thereof, on the first taxable sale, such tax to be paid by the
buyer or purchaser within 15 days from the date of actual or constructive
delivery to the said buyer or purchaser.
The phrase ‘first taxable sale, barter, exchange or similar transaction’
means the transfer of indigenous petroleum in its original state to a first
taxable transferee. The fair
international market price shall be determined in consultation with an
appropriate government agency.
“For
the purpose of this subsection, ‘indigenous petroleum’ shall include locally
extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral gas and
all other similar or naturally associated substances with the exception of
coal, peat, bituminous shale and/or stratified mineral deposits.”
SEC. 4. Transitory Provision. –
Refined and manufactured products of petroleum produced from crude oil and/or
indigenous petroleum on which the ten percent (10%) ad valorem basic duty and the Ninety-five centavos (P 0.95) special
levy under Harmonized System Heading No. 27.09 of the Tariff and Customs Code
of the Philippines, as amended, or the fifteen percent (15%) tax imposed under
Section 151(a)(4) of the National Internal Revenue Code, as amended, have been
paid before the effectivity of this Act, but which shall be removed from the
place of production or released from customs’ custody, as the case may be, on
or after the effectivity of this Act, shall not be subject to specific tax
prescribed under Section 1 hereof but to the rates of specific tax under
Section 145 of the National Internal Revenue Code, as amended, prior to this
Act.
SEC. 5. If any provision of this Act is declared
unconstitutional and the application thereof to any person, circumstance or
transaction is held invalid, the validity of the remaining provisions of this
Act or the applicability of such provision to other persons, circumstances of
transactions shall not be affected thereby.
SEC. 6. The
Secretary of Finance shall, upon the
recommendation of the
Commissioner
of Internal Revenue, promulgate and publish the necessary rules and
regulations for the effective implementation of this Act.
SEC. 7. All laws, decrees, executive
orders, rules and regulations and other issuances or parts thereof which are
inconsistent with this Act are hereby repealed or modified accordingly.
SEC. 8. This Act shall take effect upon
the initial implementation of the automatic oil pricing formula provided for
under
Republic Act No. 8180.
Approved, June 11, 1996
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