Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1671)
The primary policy is to levy an annual privilege fixed tax on businesses dealing in goods subject to specific tax, particularly gasoline and LPG dealers, to stabilize the tax system and support the industry's viability.
Gasoline stations are classified as Service Stations, Filling Stations, and Curb Pumps, each with specific definitions and classifications (Class A, B, C for Service Stations) based on land area and facilities.
Class A Service Stations are subject to an annual fixed tax of P12,000.
A Service Station is a petroleum products retail outlet with a building and driveway near or abutting a street or highway, where gasoline, kerosene, diesel, lubricants, and derivatives including car care products are sold, and car care services are rendered to the public.
LPG dealers with annual sales exceeding 1,200,000 kilograms are subject to an annual fixed tax of 6,000 pesos.
A Filling Station is a petroleum retail outlet with building, driveway, and pump island primarily selling gasoline, kerosene, diesel, lubricants, and their derivatives, including marine outlets whether mobile or stationary.
A Curb Pump typically lacks a separate building and driveway and offers no additional services aside from selling petroleum products, with filling done at the curb side of a road.
Classification depends on land area in square meters, number of lube days, pump islands, wash racks, and hoists, with Class A being the largest and most equipped, and Class C the smallest with minimal facilities.
The Decree took effect beginning calendar year 1980.
The amendment stabilizes the annual privilege tax for gasoline and LPG dealers by imposing fixed taxes rather than graduated taxes based on gross sales, supporting industry viability amidst high oil prices.