AN ACT RESTRUCTURING THE EXCISE TAX ON PETROLEUM PRODUCTS, AMENDING FOR THE PURPOSE PERTINENT SECTIONS OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED

Tenth Congress

[ REPUBLIC ACT NO. 8184, June 11, 1996 ]

AN ACT RESTRUCTURING THE EXCISE TAX ON PETROLEUM PRODUCTS, AMENDING FOR THE PURPOSE PERTINENT SECTIONS OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Section 145 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows:

Section 2. Subparagraph (2) of paragraph (a) of Section 151 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows:

"(2) On all non-metallic minerals and quarry resources, a tax of two percent (2%) based on the actual market value of the gross output thereof at the time of removal, in the case of those locally extracted or produced; or the value used by the Bureau of Customs in determining tariff and customs duties, net of excise tax and value-added tax, in the case of importation."

Notwithstanding the provision of subparagraph (4) of paragraph (a) of Section 151, locally extracted natural gas and liquefied natural gas shall be taxed at the rate of two percent (2%).

Section 3. Subparagraph (4) of paragraph (a) of Section 151 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows:

"(4) On indigenous petroleum, a tax of three percent (3%) of the fair international market price thereof, on the first taxable sale, such tax to be paid by the buyer or purchaser within 15 days from the date of actual or constructive delivery to the said buyer or purchaser. The phrase 'first taxable sale, barter, exchange or similar transaction' means the transfer of indigenous petroleum in its original state to a first taxable transferee. The fair international market price shall be determined in consultation with an appropriate government agency.

"For the purpose of this subsection, 'indigenous petroleum' shall include locally extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral gas and all other similar or naturally associated substances with the exception of coal, peat, bituminous shale and/or stratified mineral deposits."

Section 4. Transitory Provision. – Refined and manufactured products of petroleum produced from crude oil and/or indigenous petroleum on which the ten percent (10%) ad valorem basic duty and the Ninety-five centavos (P0.95) special levy under Harmonized System Heading No. 27.09 of the Tariff and Customs Code of the Philippines, as amended, or the fifteen percent (15%) tax imposed under Section 151(a)(4) of the National Internal Revenue Code, as amended, have been paid before the effectivity of this Act, but which shall be removed from the place of production or released from custom's custody, as the case may be, on or after the effectivity of this Act, shall not be subject to specific tax prescribed under Section 1 hereof but to the rates of specific tax under Section 145 of the National Internal Revenue Code, as amended, prior to this Act.

Section 5. If any provision of this Act is declared unconstitutional and the application thereof to any person, circumstance or transaction is held invalid, the validity of the remaining provisions of this Act or the applicability of such provision to other persons, circumstances of transactions shall not be affected thereby.

Section 6. The Secretary of Finance shall, upon the recommendation of the Commissioner of Internal Revenue, promulgate and publish the necessary rules and regulations for the effective implementation of this Act.

Section 7. All laws, decrees, executive orders, rules and regulations and other issuances or parts thereof which are inconsistent with this Act are hereby repealed or modified accordingly.

Section 8. This Act shall take effect upon the initial implementation of the automatic oil pricing formula provided for under Republic Act No. 8180.

Approved, June 11, 1996.

"Section 145. Manufactured oils and other fuels. – There shall be collected on refined and manufactured mineral oils and motor fuels, the following specific taxes which shall attach to the goods hereunder enumerated as soon as they are in existence as such: