QuestionsQuestions (PRESIDENTIAL DECREE NO. 1122)
It increases the specific tax rates on certain petroleum products—namely gasoline, aviation turbo jet fuel, diesel fuel oil, solvents and thinners—by amending Sections 142 and 145 of the National Internal Revenue Code.
Sections 142 and 145 of Commonwealth Act No. 466 (the National Internal Revenue Code), as amended.
Specific taxes attach to enumerated manufactured oils and fuels, including: kerosene, lubricating oils, naptha gasoline and similar products, premium on and aviation gasoline, denatured alcohol for motive power, process gas, thinners and solvents, liquefied petroleum gas (including a special rule for motive power), asphalts, greases/waxes/petroleum, and aviation turbo jet fuel.
Seven centavos per liter of volume capacity.
Sixty-five centavos per liter of volume capacity.
For naptha gasoline and similar products, the tax is fifty centavos per liter, but for premium on and aviation gasoline the tax is fifty-five centavos per liter of volume capacity (a higher rate).
Thirty centavos per liter of volume capacity.
Forty centavos per liter of volume capacity.
LPG is taxed at twelve centavos per kilogram. LPG used for motive power is taxed at the equivalent rate as the specific tax on diesel fuel oil.
Seventeen and one-half centavos per liter of volume capacity.
It applies not only to diesel fuel oil commercially known as such, but also to all similar fuel oils having more or less the same generating power.
Unless otherwise provided by special law, if denatured alcohol is mixed with gasoline (on which specific tax has already been paid), only the alcohol content is subject to the specific tax prescribed for denatured alcohol used for motive power.
The removal of denatured alcohol of not less than one hundred eight degrees proof (ninety percent absolute alcohol) is deemed removal for motive power, unless shown to the contrary.
It takes effect immediately.
Because there was a prevailing global oil crisis and the government intended to discourage wasteful consumption, with tax increases serving as an effective oil conservation measure and an equitable source of additional revenues for economic development.