EXECUTIVE ORDER NO. 1076 - IMPOSING SPECIFIC TAX ON CERTAIN PETROLEUM PRODUCTS IN ADDITION TO THE AD VALOREM TAX IMPOSED THEREON

WHEREAS, with the lifting of the 5% import surcharge, the 1% foreign exchange transaction tax and the 25% mark-up on the advance sales tax effective January 1, 1986, it is imperative to adopt certain measures to recoup the foregone revenues arising from the abolition of such imposts;

WHEREAS, a substantial portion of the revenue loss could be recouped by internalizing the import surcharge on crude oil through an adjustment of the tax rates and other components of the price structure of certain refined petroleum products; and

WHEREAS, the restructuring of the tax on these products under such scheme will not in any manner increase their existing authorized wholesale posted and retail prices.

NOW, THEREFORE, I, FERDINAND E. MARCOS, I resident of the Philippines, by virtue of the powers in me vested by the Constitution and by Sec. 290-B of the National Internal Revenue Code, as amended, do hereby direct and order that:

Section 1. Paragraph (b) of Section 128 of P. D. 1994 is hereby amended to read as follows:

“(b) For products subject to both specific and ad valorem taxes:
“Specific “Ad Valorem

“(1) Naphtha, regular gasoline
and similar products of
distillation P1.575/liter 25%

“(2) Premium and aviation  P1.49/liter 25%
gasoline

“(3) Kerosene    P0.268/liter 14%

“(4) Fuel Oil commercially
known as diesel fuel oil, and
on similar fuel oils, having
more or less the same generating
capacity, and liquefied petroleum
 gas used for motive power P0.269/liter 22%

“(5) Thinners and Solvents P1.491/liter 25%

“(6) Liquified Petroleum Gas
except those used for
motive power     P0.572/liter
or
P1.029/kilogram 14%

“(7) Aviation Turbo Fuel P1.509/liter 25%

“(8) Fuel Oil commercially
known as bunker fuel oil
and oils having more or less
the same generating power  P0.443/liter 7%

“(9) Asphalts     P0.226/liter 14%

Sec. 2. Paragraph (c) of Section 128 of P. D. 1994 is hereby deleted.

Sec. 3. This Executive Order shall take effect on January 1, 1986.

Done in the City of Manila, this 26th day of December, in the year of Our Lord, nineteen hundred and eighty-five.