Tax on Gasoline and LPG Dealers

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PRESIDENTIAL DECREE NO. 1671: Tax on Gasoline and LPG Dealers

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Title Source: Supreme Court: Tax on Gasoline and LPG Dealers

Law: Presidential Decree No. 1671

Decision Date: Jan 28, 1980

Presidential Decree No. 1671 introduces fixed annual taxes for gasoline and LPG dealers in the Philippines, aiming to stabilize taxation and support the viability of the industry.

Law Summary

Amendment to Section 192 (3) of the National Internal Revenue Code

Addition of two new paragraphs (pp) and (qq) after paragraph (oo).
Introduction of fixed annual tax rates for dealers of gasoline, petroleum products, and liquefied petroleum gas (LPG).

Fixed Annual Privilege Tax for Gasoline and Petroleum Dealers

Classification of dealers into categories with corresponding fixed tax amounts:
1. Class "A" service stations: ₱12,000
2. Class "B" service stations: ₱6,000
3. Class "C" service stations: ₱3,000
4. Filling stations: ₱1,000
5. Curb pumps: ₱500

Definitions and Classification of Gasoline Stations

Service Station: Retail outlet with building, driveway, located near street or highway; sells gasoline, kerosene, diesel, lubricants, derivatives, and car care services.
Filling Station: Retail outlet with building, driveway, pump island; business mainly gasoline, kerosene, diesel, lubricants sales; includes marine outlets.
Curb Pumps: Outlet without separate building/driveway; sells petroleum products only at roadside.
Service Station Classes Based on Features:
- Class "A": Land area 1501+ sq.m., minimum 2 lube bays, minimum 3 pump islands, minimum 1 wash rack, hoist.
- Class "B": Land area 1001-1500 sq.m., maximum 2 lube bays, minimum 2 pump islands, 1 wash rack.
- Class "C": Land area 1000 sq.m. or less, maximum 1 lube bay, minimum 1 pump island, 1 wash rack.

Fixed Annual Privilege Tax for Dealers of Liquefied Petroleum Gas (LPG)

Tax rates based on annual sales volume in kilograms:
- Sales > 1,200,000 kg: ₱6,000
- Sales > 900,000 kg up to 1,200,000 kg: ₱4,000
- Sales > 600,000 kg up to 900,000 kg: ₱2,000
- Sales > 300,000 kg up to 600,000 kg: ₱1,000
- Sales ≤ 300,000 kg: ₱500

Effectivity

The decree takes effect starting the calendar year 1980.

Signatories

Signed by President Ferdinand E. Marcos and Presidential Assistant Juan C. Tuvera in Manila on January 28, 1980.

END