EXECUTIVE ORDER NO. 195 - AMENDING PARAGRAPH (b) OF SECTION 128 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, BY REVISING THE EXCISE TAX RATES OF CERTAIN PETROLEUM PRODUCTS

WHEREAS, the upward trend in the world prices of crude oil has made it necessary to adjust the prices of domestic petroleum products;  

WHEREAS, in the adjustment of oil prices, it is likewise necessary to restructure the excise tax components in order to cushion the impact of increased of petroleum products on the economy; and

WHEREAS, in restructuring the excise tax components of certain petroleum products, it become imperative to adopt the pure ad valorem tax scheme in order to provide for a built-in fibility to price changes and obviate frequent revisions of tax rates as a result of fluctuations in crude oil prices.

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

Section 1. Paragraph (b) of Section 128 of the National Internal Revenue Code, as amended, is hereby amended to read as follows:

“Par. (b) — For products subject to ad valorem tax only:

PRODUCT     AD VALOREM
TAX RATE

1. Naphtha, gasoline and other similar products of
  distillation 48%
2. Aviation turbo jet fuel 48%
3. Thinners and solvents    48%
4. Fuel oil, commercially known as bunker oil and on
   similar fuels oils having more or less the same  
   generating power 0%
5. Fuel oil, commercially known as diesel fuel oil, and
   on similar fuel oils having more or less the same
   generating power    24%
6. Kerosene 24%
7. Liquefied Petroleum gas     24%
8. Asphalts 24%

Sec. 2. All orders, issuances, rules and regulations or any part thereof which are inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

Sec. 3. This Executive Order shall take effect immediately.

Done in the City of Manila, this 17th day of June, in the year of Our Lord, nineteen hundred and eighty-seven.
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