Presidential Decree No. 1956
IMPOSING AN AD VALOREM TAX ON
CERTAIN MANUFACTURED OILS AND OTHER FUELS; BUNKER FUEL OIL AND DIESEL FUEL OIL;
REVISING THE RATES OF SPECIFIC TAX THEREON; ABOLISHING THE OIL INDUSTRY SPECIAL
FUND; AND FOR OTHER PURPOSES
WHEREAS,
the current economic crisis amounts to a grave emergency which affects the
stability of the nation and requires immediate action;
WHEREAS,
it is also desirable to stabilize the prices of petroleum products for a longer
period despite exchange rate adjustments or world market price changes;
WHEREAS,
the issuance of this decree is an essential and necessary component of the
national economic recovery program formulated to meet and overcome the
emergency;
NOW,
THEREFORE, I, FERDINAND E. MARCOS, President of the
SECTION
1. There is hereby imposed on certain
manufactured oils and other fuels, bunker fuel oil and diesel fuel oil, an ad
valorem tax, as follows:
(a) Kerosene, fourteen per centum;
(b) Naptha, regular gasoline and all similar products of distillation, twenty five per centum;
(c) Premium and aviation gasoline, twenty five per centum;
(d) Thinners and solvents, twenty five per centum;
(e) Liquefied petroleum gas, fourteen per centum;
(f) Asphalt, fourteen per centum;
(g) Aviation turbo jet fuel, twenty five per centum;
(h) Fuel oil, commercially known as bunker fuel oil, and on all similar fuel oils, having more or less the same generating power, seven per centum;
(i) Fuel oil, commercially known as diesel fuel oil, and on similar fuel oils, having more or less the same generating capacity, twenty two per centum.
SEC.
2. The ad valorem tax shall be based on
the wholesale posted price net of specific and domestic ad valorem taxes of the
oil product concerned, as approved by the
Board
of Energy.
SEC.
3. The ad valorem tax shall be paid by
the manufacturer, producer, owner, person having possession of importer, at the
same time, in the same manner and subject to the same penalties, as the specific
tax, as prescribed in Presidential Decree No. 1158, as amended.
SEC.
4. Proceeds realized from the ad valorem
tax shall accrue to the General Fund.
SEC.
5. Section 153 of Presidential Decree
No. 1158, as amended is hereby further amended to read as follows:
“SEC. 153. Specific Tax on manufactured oils and other
fuels. – On refined and manufactured
mineral oils and motor fuels, there shall be collected the following taxes
which shall attach to the articles hereunder enumerated as soon as they are in
existence as such:
“(a) Lubricating oil, per liter of
volume capacity, four pesos and fifty centavos;
“(b) Naphtha, regular gasoline and all
other similar products of distillation, per liter of volume, capacity, one peso
and twenty nine centavos; Provided, That on premium and aviation
gasoline the tax shall be one peso and eighteen and one half centavos per liter
of volume capacity;
“(c) On denatured alcohol to be used
for motive power, per liter of volume capacity, one centavo: Provided,
That unless otherwise provided for 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 the purposes of this subsection, the
removal of denatured alcohol of not less than one hundred eighty degrees proof
(ninety per centum absolute alcohol) shall be deemed to have been removed for
motive power, unless shown to the contrary;
“(d) Processed gas, per liter of
volume capacity, five centavos;
“(e) Thinners and solvents, per liter
of volume capacity, one peso and twenty centavos;
“(f) Liquefied petroleum gas, per
kilogram, sixty two and one half centavos:
Provided,
That liquefied petroleum gas used for motive power shall be taxed at a rate
equivalent to the specific and ad valorem tax on diesel fuel oil;
“(g) Greases, waxes and petrolatum,
per kilogram, four pesos and fifty centavos;
“(h) Aviation turbo jet fuel, per
liter of volume capacity, one peso and twenty centavos;
“(i) Fuel oil, commercially known as
bunker fuel oil, and on all similar fuel oils, having more or less the same
generating power, twenty five centavos per liter of volume capacity.”
SEC.
6. The payments of Special Fund as
provided in
Section 17 of Republic Act 6173, as amended,
shall be abolished:
Provided, That
petroleum products in the possession of the oil companies which had been
removed from the refinery or from the bonded terminal but not yet sold, shall
be subject to the same rate of special fund impost prevailing before the
effectivity of this Decree.
SEC.
7. The special fund created under
Section 8 paragraph (j), of
Republic Act No. 6173, as
amended, is hereby abolished.
Outstanding claims against the Special Fund shall be settled from the
existing resources and the balance, if any, shall be transferred to the General
Fund.
SEC.
8. There is hereby created a Special
Account in the General Fund to be designated as Oil Price Stabilization Fund
for the purpose of minimizing frequent price changes brought about by exchange
rate adjustments and/or an increase in world market prices of crude oil and
imported petroleum products.
The
Fund may be sourced from any of the following:
(a) Any increase in the tax collection from ad valorem tax or customs duty imposed on petroleum products subject to tax under this Decree arising from exchange rate adjustment, as may be determined by the Minister of Finance in consultation with the Board of Energy;
(b) Any increase in the tax collection as a result of the lifting of tax exemptions of government corporations under Presidential Decree No. 1931, as may be determined by the Minister of Finance in consultation with the Board of Energy;
(c) Any additional tax to be imposed on petroleum products to augment the resources of the Fund through an appropriate Order that may be issued by the Board of Energy requiring payment by persons or companies engaged in the business of importing, manufacturing and/or marketing petroleum products.
The
Fund created herein shall be used to reimburse the oil companies for cost
increases on crude oil and imported petroleum products resulting from exchange
rate adjustment and/or increase in world market prices of crude oil.
The Fund shall be administered by the Ministry of Energy.
SEC. 9. The Minister of Finance shall promulgate the necessary rules and regulations to implement this Decree.
SEC. 11. This Decree shall take effect on October 15, 1984.
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