Presidential Decree No. 1889
LEVYING A SURTAX ON EXTRAORDINARY GAINS REALIZED BY OIL COMPANIES FROM PETROLEUM PRODUCTS
WHEREAS, the immediate price increases on the whole range of refined or
blended petroleum products have brought about extraordinary gains for oil
companies on account of the sale at higher prices of finished products,
processed from crude oil and other base stocks, purchased or acquired by them
before the price adjustment; and
WHEREAS, a part of such extraordinary and unearned gains should be utilized
for the benefit of a greater number of our people.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue
of the powers vested in me by the Constitution, do hereby decree and order the
following:
SECTION 1. Surtax on Extraordinary Gains; Rate of Surtax. In
addition to the income tax imposed under Title II of the National Internal
Revenue Code, there is hereby imposed a surtax of sixty-five (65%) per cent
on extraordinary gains realized by oil companies as a result of price increases
authorized for petroleum products, which surtax shall be allowed as part of the
cost of petroleum product sold on or after November 3, 1983.
SEC. 2. Computation of Extraordinary Gains. The extraordinary
gains shall be measured by the difference between the approved wholesale posted
prices of refined petroleum products immediately before the authorized price
increases and the new posted prices multiplied by the number of units of
petroleum products existing as of the day of effectivity of the price
increases. Extraordinary gains shall also refer to the aggregate increases in
the value of crude oil and base stocks.
SEC. 3. Time, Manner and Place of Payment. The surtax herein
imposed shall be paid within thirty (30) days following the promulgation of this
Decree. The rules and regulations authorized under Section 5 hereof may provide
for installment payments.
A return shall be filed at the time of payment with the
Commissioner of Internal Revenue.
SEC. 4. Penalties. Failure to pay the tax and to file the
corresponding tax return as hereinabove specified, as well as any other
violations of this Decree, shall be subject to surcharges, interests and
penalties provided under Title II of the National Internal Revenue Code.
SEC. 5. Rules and Regulations. The Minister of Finance upon recommendation of the Commissioner of Internal Revenue and in consultation with the Minister of Energy shall promulgate rules and regulations to implement the provisions of this Decree.
SEC. 6. Repealing Clause. All acts, decrees, executive and
administrative orders and other issuances which are inconsistent herewith, are
hereby repealed or modified accordingly.
SEC. 7. Effectivity. This Decree shall take effect immediately.
Done in the City of Manila, this 3rd day of November nineteen hundred and
eighty-three.
What do you want to do now?
Go Back to the Top; Go back to arts home page; Laugh or Be Entertained; Destroy Cartels and Monopolies; Invest or Find a Job; Check Software or a Computer; Check out the latest News; Look for a School; Greet a Friend; Dip Into Black Gold and be Electrified; Express Yourself; Relive the Past; Get Involved in the Law, Government, & Politics; Read Some Classics; Meet New People; Consult the laws of the Philippine energy sector; Philosophize; or Search.
This page is best viewed using Microsoft Internet Explorer 4.0 or higher.
Last revised: February 19, 2009 01:42 PM.
Caveat Emptor: Owners of the sites included herein do not explicitly endorse this page.
Comments, suggestions, objections, or violent reactions?