EXECUTIVE ORDER NO. 21 - AMENDING SECTION 128 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, BY REVISING THE SPECIFIC TAX RATES ON PETROLEUM PRODUCTS

WHEREAS, the recent rollbacks in the prices of petroleum products have resulted in a substantial loss of revenue due to the reduction in the ad valorem tax collections;

WHEREAS, considering the expected budgetary deficits for the current year, it becomes imperative to revise the specific tax rates on these products to recoup the aforecited revenue loss;  

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Republic of the Philippines, do hereby direct and order that:

Section 1. Section 128 of the National Internal Revenue Code, as amended, is hereby further amended to read in its entirely as follows:

“Sec. 128. Manufactured Oils and Other Fuels. — There shall be collected on refined and manufactured mineral oils and motor fuels, the following excise taxes which shall be attached to the articles hereunder enumerated as soon as they are in existence as such:

“(a) For products subjects to specific tax only: 

“(1) Lubricating oils, per liter of volume capacity, four pesos and fifty centavos;

“(2) Processed gas, per liter of volume capacity, five centavos;

“(3) Greases, waxes and petroleum, per kilogram four pesos and fifty centavos; and

“(4) On denatured alcohol to be used for motive power, per liter of volume capacity, five centavos: Provided, That unless otherwise provided by special laws, if the denatured alcohol is mixed with gasoline, the excise tax on which has already been paid, only the alcohol content shall be subject to the tax herein prescribed. For purposes of this subsection, the removal of denatured alcohol of not less than one hundred eighty degrees proof (ninety per cent absolute alcohol) shall be deemed to have been removed from motive power, unless shown otherwise. 

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

Specific Ad
Valorem

“(1) Naphtha, regular gasoline and
similar products of distillation     P2.604/liter 25%

“(2) Premium and aviation gasoline P2.489/liter 25%

“(3) Kerosene   P.628/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 liquified
petroleum gas used for motive
power P.523/liter 22%

those used for motive P.697/liter or
power   1.247/kg 14%

as bunker fuel oil and oils
having more or less the same
generating power     P.511/liter 7%

“The ad valorem tax shall be based on the wholesale posted price, not of specific and domestic ad valorem taxes on the oil products as approved by the Board of Energy.”  

Sec. 2. This Executive Order shall take effect beginning May 22, 1986.

Done in the City of Manila, this 19th day of June, in the year of Our Lord, nineteen hundred and eighty-six.
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Since 19.07.98.