QuestionsQuestions (Republic Act No. 1435)
RA 1435 is meant to provide a means for increasing the Highway Special Fund by increasing specific taxes on manufactured oils and diesel fuel. Section 3 provides that the proceeds of the increased taxes shall be exclusively set aside for amortizing highway-related loans or bonds and for liquidating toll bridges constructed from revolving funds, subject to recommendations and presidential approval.
Section 1 amends Section 142 of the National Internal Revenue Code. It specifies new rates for specific taxes on kerosene/petroleum, lubricating oils, naptha/gasoline and similar distillation products, and denatured alcohol for motive power.
Kerosene/petroleum: 2.5 centavos per liter; lubricating oils: 7 centavos per liter; naptha/gasoline and similar distillation products: 8 centavos per liter; denatured alcohol for motive power: 1 centavo per liter.
If denatured alcohol is mixed with gasoline (where the gasoline specific tax has already been paid), only the alcohol content is subject to the tax under Section 142(d).
Removal of denatured alcohol of not less than 180 degrees proof (90% absolute alcohol) is deemed to have been removed for motive power unless shown to the contrary.
Whenever certain oils are used in agriculture within the five years from June 18, 1952, 50% of the specific tax paid may be refunded upon submission of (1) a sworn affidavit of the producer and two disinterested persons proving actual use in agriculture, or (2) if the producer belongs to a duly registered producers association, an affidavit from the association president attesting actual use.
A 50% refund is available upon submission of a sworn certificate satisfactory to the Collector proving actual use in aviation. Refunds are not granted for aviation oils used by foreign citizens and corporations that do not grant equivalent refunds/exemptions for similar Philippine users.
Section 2 amends Section 145. It imposes a specific tax on diesel fuel oil and similar fuel oils having more or less the same generating power, at one peso per metric ton.
Section 3 directs that the proceeds be set aside exclusively for amortizing authorized loans or bonds for the construction, reconstruction, or improvement of highways including bridges, and for liquidating toll bridges from revolving funds when recommended by the Secretary of Public Works and Communications and approved by the President.
Municipal boards or councils may levy an additional tax on manufactured oils sold or distributed within the city or municipality. The additional tax must not exceed 25% of the rates fixed in Sections 142 and 145.
It ratifies and declares valid municipal taxes previously levied by cities through city ordinances on gasoline, airplane fuel, lubricating oil, and other fuels.
The method of collecting the additional tax shall be prescribed by the municipal board or council concerned.
They accrue to the road and bridge funds of the political subdivision for whose benefit the tax is collected.
Section 5 provides that when oils are used by miners or forest concessionaires, 25% of the specific tax paid may be refunded by the Collector upon proof of actual use of oils and under similar conditions enumerated in sub-paragraphs one and two of Section 1 (amending Section 142).
No new road shall be constructed unless the route/location is approved by the Commissioner of Public Highways after determining that the road can be made part of an integral and articulated route in the Philippine Highway System, as required by Section 26 of the Philippine Highway Act of 1953.
It takes effect upon approval. The act was approved on June 14, 1956.