Legal basis and amendment scope
- Presidential Decree No. 1917 is issued under the President’s constitutional authority.
- The decree amends Title IV (Specific Tax) of the National Internal Revenue Code, specifically Sections 153, 155, and 156, as amended.
Policy and legislative intent
- The decree is premised on the need for a cutback in the volume of crude oil imports through stringent measures to conserve fuel and avoid wasteful consumption.
- The decree states that restructuring refined petroleum product prices is one of the most effective measures for fuel and energy conservation.
- The decree directs that tax component realignment is necessary to address demand imbalance by reshaping consumption of oil products.
- The decree states that revising specific tax rates will generate additional revenue to support the government’s economic programs.
Amended specific tax on manufactured oils
- Section 153 establishes specific tax on refined and manufactured mineral oils and motor fuels, collected as soon as the articles are in existence as such.
- The specific tax rates under Section 153 are measured per liter of volume capacity for the listed petroleum products, except where a different unit is stated.
- Kerosene is taxed at thirty two and three-fourth centavos per liter of volume capacity.
- Lubricating oils are taxed at one peso and fifty centavos per liter of volume capacity.
- Naphtha, regular gasoline and all other similar products of distillation are taxed at one peso and sixty six and one fourth centavos per liter of volume capacity.
- Premium gasoline and aviation gasoline are taxed at one peso and fifty four and one fourth centavos per liter of volume capacity.
- Denatured alcohol to be used for motive power is taxed at one centavo per liter of volume capacity.
- For denatured alcohol, removal for motive power is deemed to have occurred when removal is not less than one hundred eighty degrees proof (ninety per centum absolute alcohol), unless shown otherwise.
- Processed gas is taxed at four and one-half centavos per liter of volume capacity.
- Thinners and solvents are taxed at ninety one and one-half centavos per liter of volume capacity.
- Liquefied petroleum gas is taxed at eighty five centavos per kilogram.
- Liquefied petroleum gas used for motive power is taxed at the equivalent rate as the specific tax on diesel fuel oil.
- Asphalt is taxed at forty six centavos per kilogram.
- Greases, waxes and petroleum are taxed at eighty centavos per kilogram.
- Aviation turbo jet fuel is taxed at one peso and twenty three centavos per liter of volume capacity.
Denatured alcohol mixing rule
- Section 153 provides that if denatured alcohol is mixed with gasoline and the specific tax on which has already been paid, only the alcohol content is subject to the specific tax prescribed for denatured alcohol used for motive power.
Amended specific tax on bunker fuel oil
- Section 155 imposes specific tax on fuel oil, commercially known as bunker fuel oil, and on all similar fuel oils having more or less the same generating power.
- Section 155 sets the rate at thirty three and one-half centavos per liter of volume capacity.
- The tax under Section 155 attaches as soon as the fuel oil is in existence as such.
Amended specific tax on diesel fuel oil
- Section 156 imposes specific tax on fuel oil, commercially known as diesel fuel oil, and on all similar fuel oils having more or less the same generating power.
- Section 156 sets the rate at fifty seven and one-half centavos per liter of volume capacity.
- The tax under Section 156 attaches as soon as the fuel oil is in existence as such.
Duration and transitory effect
- The decree applies beginning May 17, 1984 (Section 2).
- All tax liabilities described in Sections 153, 155, and 156 attach at the moment the respective products are in existence as such.