Legal basis and covered tax provision
- The authority for issuance is based on the President’s powers vested by the Constitution and Section 158-A of the National Internal Revenue Code, as amended by Presidential Decree No. 1393.
- Section 1 revises the gasoline specific tax rates under Section 153(c) of the National Internal Revenue Code of 1977, as amended.
- The revision is specifically limited to the “rates of specific tax on gasoline” under the cited internal revenue provision.
Policy rationale for rate revision
- The Executive Order finds that increases in crude oil prices have adversely affected infrastructure projects.
- It states that constant price increases threaten the economic development of the country.
- The Executive Order directs rate revision to support continuing economic development despite rising costs of vital project materials and equipment.
Revised gasoline specific tax rates
- Section 1 revises the rates of specific tax on gasoline to PHP 0.62 per liter for Regular gasoline.
- Section 1 revises the rates of specific tax on gasoline to PHP 0.67 per liter for Premium gasoline.
- The revised rates apply by replacing the gasoline specific tax rates referenced under Section 153(c) of the National Internal Revenue Code of 1977.
Operative timing and implementation effect
- Section 2 sets the effectivity date as August 1, 1979.
- The revision becomes enforceable starting on August 1, 1979 for gasoline specific tax computed under Section 153(c).