QuestionsQuestions (Republic Act No. 8184)
RA 8184 restructures the excise tax on petroleum products and amends pertinent sections of the National Internal Revenue Code (NIRC), as amended—particularly Section 145 on manufactured oils and other fuels.
The tax is P4.50 per liter of volume capacity.
Specific taxes paid on purchased feedstock (bunker) used in manufacturing excisable articles and forming part thereof are credited against the specific tax due for the finished product.
They are no longer subject to specific tax.
The general rate is P4.80 per liter. Naphtha used as a raw material for petrochemical products is taxed at P0.00 per liter (subject to rules by the Secretary of Energy in consultation with the Secretary of Finance).
Byproducts (including fuel oil, diesel, kerosene, pyrolysis, gasoline, LPG, and similar oils) are subject to the applicable specific tax—except when transferred to local oil refineries through sale, barter, or exchange for further processing or blending into finished products subject to specific tax.
Leaded premium gasoline: P5.35 per liter. Unleaded premium gasoline: P4.35 per liter.
Kerosene used as aviation fuel is taxed at the same rate as aviation turbo jet fuel under Section 145(a)(7), assessed on the user.
LPG is taxed at P0.00 per liter. LPG used for motive power is taxed at the equivalent rate as the specific tax on diesel fuel oil.
P1.63 per liter of volume capacity.
If the products had already paid the 10% ad valorem basic duty and the P0.95 special levy under HS Heading 27.09, or the 15% tax under Section 151(a)(4), they are not subject to the specific tax rates under the amended Section 145, but instead use the specific tax rates under Section 145 prior to the Act.
A 2% tax. For locally extracted/produced: based on actual market value of gross output at removal. For importation: based on the Bureau of Customs value used to determine tariff/customs duties, net of excise tax and VAT.
Notwithstanding subparagraph (4) of Section 151(a) and despite the general scheme, locally extracted natural gas and liquefied natural gas are taxed at 2%.
A 3% tax on the fair international market price, paid by the buyer or purchaser within 15 days from actual or constructive delivery.
It is the transfer of indigenous petroleum in its original state to a first taxable transferee.
It includes locally extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral gas, and similar naturally associated substances; it excludes coal, peat, bituminous shale, and/or stratified mineral deposits.
It takes effect upon the initial implementation of the automatic oil pricing formula under RA 8180; the tax restructuring is tied to the operation of that pricing mechanism.