Amending Section 128 Of The National Internal Revenue Code, As Amended, By Revising The Specific Tax Rates On Petroleum Products.

EXECUTIVE ORDER NO. 21 May 22, 1986

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:

Sec. 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...

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Summary of Executive Order No. 21 (May 22, 1986)

Amending Section 128 of the National Internal Revenue Code on Specific Tax Rates for Petroleum Products

- Rationale:
  - Recent rollbacks in petroleum product prices resulted in substantial revenue loss from reduced ad valorem tax collections.
  - Need to revise specific tax rates to recoup revenue loss and address expected budgetary deficits.

- Revised Specific Tax Rates (Section 1):
  - Products subject to specific tax only:
    - Lubricating oils: P4.50 per liter of volume capacity (Sec. 1(a)(1))
    - Processed gas: P0.05 per liter of volume capacity (Sec. 1(a)(2))
    - Greases, waxes, and petroleum: P4.50 per kilogram (Sec. 1(a)(3))
    - Denatured alcohol for motive power: P0.05 per liter of volume capacity (Sec. 1(a)(4))
  - Products subject to both specific and ad valorem taxes:
    - Naphtha, regular gasoline, and similar products: P2.604/liter + 25% ad valorem (Sec. 1(b)(1))
    - Premium and aviation gasoline: P2.489/liter + 25% ad valorem (Sec. 1(b)(2))
    - Kerosene: P0.628/liter + 14% ad valorem (Sec. 1(b)(3))
    - Diesel fuel oil, similar fuel oils, and liquified petroleum gas for motive power: P0.523/liter + 22% ad valorem (Sec. 1(b)(4))
    - Thinners and solvents: P2.472/liter + 25% ad valorem (Sec. 1(b)(5))
    - Liquified petroleum gas except for motive power: P0.697/liter or P1.247/kg + 14% ad valorem (Sec. 1(b)(6))
    - Aviation turbo fuel: P2.5671/liter + 25% ad valorem (Sec. 1(b)(7))
    - Bunker fuel oil and similar oils: P0.511/liter + 7% ad valorem (Sec. 1(b)(8))
    - Asphalts: P0.581/liter + 14% ad valorem (Sec. 1(b)(9))
    - Ad valorem tax based on wholesale posted price approved by the Board of Energy.

- Effectivity: May 22, 1986 (Section 2)