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EXECUTIVE ORDERS
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EXECUTIVE ORDER NO. 794 -
AUTHORIZING THE PRESIDENT OF THE PHILIPPINES THE IMPORTATION OF FUEL
OIL (LOI NO. 837), DIESEL FUEL AND KEROSENE (LOI NO. 839) FREE FROM
CUSTOMS DUTIES AND OTHER IMPORTATION TAXES AND CHARGES
WHEREAS,
aside from the President’s power under Sec. 401 of Presidential
Decree No. 1464, as amended, to adjust tariff rates in the interest of
national economy, general welfare and/or national security subject to
certain limitations, under Presidential Decree No. 1610 which took
effect on 28 February 1979, the President may, upon the recommendation
of the Minister of Energy, authorize the tax and duty free importation
of petroleum products the supply of which becomes critical during the
petroleum product supply emergency.
WHEREAS, pursuant to the latter law which also allowed the importation
of liquefied petroleum gas, motor gasoline, naphtha and natural gas
liquids free from customs duties and other importation taxes and
charges, the President had authorized the tax and duty free importation
of fuel soil (LOI No. 837) and diesel fuel and kerosene (LOI No.
839).
WHEREAS, with the easing of the supply shortage for some petroleum
products towards the end of 1980, the President directed under LOI No.
1068, the lifting of the tax and duty exemption on the importation of
premium and regular motor gasoline, naphtha, natural gas liquids and
kerosene.
WHEREAS, this was followed in May 1981, by the lifting of the tax and
duty exemption on liquefied petroleum gas under LOI No. 1135, thereby
leaving fuel oil and diesel fuel as the only petroleum products
enjoying exemption from duties and importation taxes and charges.
WHEREAS, presently, while the price and supply of fuel oil remains
unstable, the spot prices of diesel fuel has dropped to such levels
that the oil companies could now import diesel oil and make sufficient
profit even without the benefit of the tax and duty exemption
originally allowed under LOI No. 839.
WHEREAS, on the basis of a projected diesel fuel importation of about
860 MB for the rest of the year, if the tax and duty exemption on
diesel fuel were to continue, and spot prices remain at present levels,
the oil companies would realize a windfall profit of some P71 Million.
WHEREAS, it is however, recognized that the present price fluctuation
could be abnormal and it may be necessary to retain, to a certain
extent, the incentive mechanism to assure the country its supply of
diesel fuel.
WHEREAS, by limiting this incentive to the state owned by Philippine
National Oil Company, the government would be able to check the
realization of windfall profits by the oil companies and at the same
time indirectly recover the revenue loss resulting from the continued
exemption.
NOW, THEREFORE, by virtue of the powers vested in me by Sec. 401 of
Presidential Decree No. 1464, as amended, and by Section 1 of
Presidential Decree No. 1610, I, FERDINAND E. MARCOS, President of the
Republic of the Philippines, do hereby direct and order:
Section 1.
Sec. 2.
Sec. 3.
Done in the City of Manila,
this 6th day of April, in the year of Our Lord, nineteen hundred and
eighty-two.
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