Title
Tax Rates on Petroleum Products Revised
Law
Executive Order No. 672
Decision Date
Mar 21, 1981
Ferdinand E. Marcos revises specific tax rates on various petroleum products to generate additional revenue for government infrastructure projects and public services, effective immediately.
A

Tax Rate on Manufactured Oils and Other Fuels (Section 153)

  • Specific taxes apply to refined and manufactured mineral oils, motor fuels, and related fuel products, imposed at the point these products come into existence.
  • Tax rates include:
    • Kerosene: ₱0.09 per liter
    • Lubricating oils: ₱0.80 per liter
    • Naphtha, gasoline, and similar distillation products: ₱1.06 per liter
    • Premium gasoline: ₱1.10 per liter
    • Aviation gasoline: ₱1.00 per liter
    • Denatured alcohol for motive power: ₱0.01 per liter, with specific rules if mixed with gasoline
    • Processed gas: ₱0.03 per liter
    • Thinners and solvents: ₱0.61 per liter
    • Liquefied petroleum gas (LPG): ₱0.21 per kilogram; LPG used for motive power taxed equivalent to diesel fuel oil
    • Asphalts: ₱0.12 per kilogram
    • Greases, waxes, petroleum: ₱0.50 per kilogram
    • Aviation turbo-jet fuel: ₱0.64 per liter

Tax Rate on Bunker Fuel Oil (Section 155)

  • Bunker fuel oil and similar fuel oils are taxed at ₱0.05 per liter upon their existence.

Tax Rate on Diesel Fuel Oil (Section 156)

  • Diesel fuel oil and similar fuels are taxed at ₱0.255 per liter applied upon their existence.

Legal Authority and Effectivity

  • Authority for the revision is based on the President's powers under the Constitution and section 290-B of the National Internal Revenue Code as amended.
  • The Executive Order took effect immediately upon issuance on March 21, 1981.

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