Republic of the Philippines
Congress of the Philippines
Metro ManilaEighth Congress
Republic Act No. 6965 September 19, 1990
AN ACT REVISING THE FORM OF TAXATION ON PETROLEUM PRODUCTS FROM AD VALOREM TO SPECIFIC, AMENDING FOR THE PURPOSE SECTION 145 OF THE NATIONAL INTERNAL REVENUE CODE AS AMENDED BY REPUBLIC ACT NUMBERED SIXTY-SEVEN HUNDRED SIXTY-SEVEN
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. Section 145 of the National Internal Revenue Code as amended by Republic Act Numbered Sixty-seven hundred sixty-seven, is hereby further amended to read as follows:
"Sec. 145. Manufactured oils and other fuels. – There shall be collected on refined and manufactured mineral oils and motor fuels, the following specific taxes which shall attach to the goods hereunder enumerated as soon as they are in existence as such:
"(1) Lubricating oils and greases including but not limited to basestock for lube oils and greases, high vacuum distillates, aromatic extracts and other similar preparations, and additives for lubricating oils and greases...
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Republic Acts
AN ACT REVISING THE FORM OF TAXATION ON PETROLEUM PRODUCTS FROM AD VALOREM TO SPECIFIC
Republic Act No. 6965
Summary of Republic Act No. 6965
Taxation on Petroleum Products
- Revises the form of taxation on petroleum products from ad valorem to specific tax rates.
- Amends Section 145 of the National Internal Revenue Code.
Specific Tax Rates:
• Lubricating oils and greases: ₱4.50 per liter of volume capacity (Section 1(1)).
- Credit for specific taxes paid on purchased feedstock used in manufacturing.
- Exemption for lubricating oils and greases produced from basestocks and additives on which specific tax has been paid.
• Processed gas: ₱0.05 per liter of volume capacity (Section 1(2)).
• Waxes and petroleum: ₱3.50 per kilogram (Section 1(3)).
• Denatured alcohol for motive power: ₱0.05 per liter of volume capacity (Section 1(4)).
- If mixed with gasoline, only the alcohol content is subject to tax.
• Naphtha, regular gasoline, and similar products: ₱2.28 per liter of volume capacity (Section 1(5)).
• Premium gasoline: ₱2.52 per liter of volume capacity (Section 1(6)).
• Aviation turbo jet fuel: ₱2.38 per liter of volume capacity (Section 1(7)).
• Kerosene: ₱0.50 per liter of volume capacity (Section 1(8)).
• Diesel fuel oil and similar fuels: ₱0.45 per liter of volume capacity (Section 1(9)).
• Liquefied petroleum: ₱0.00 per liter, except when used for motive power (Section 1(10)).
• Asphalts: ₱0.56 per kilogram (Section 1(11)).
• Bunker fuel oil and similar fuels: ₱0.00 per liter of volume capacity (Section 1(12)).
• Naphtha used as raw material for petrochemical products: ₱0.00 per liter of volume capacity (Section 1(13)).
- Domestic naphtha must be utilized before importing.
- By-products from processing naphtha into petrochemical products are subject to applicable specific taxes.
Repealing Clause and Effectivity
• Repeals or modifies inconsistent laws, decrees, executive orders, issuances, rules, and regulations (Section 2).
• Takes effect upon approval (Section 3).
Taxation on Petroleum Products
- Revises the form of taxation on petroleum products from ad valorem to specific tax rates.
- Amends Section 145 of the National Internal Revenue Code.
Specific Tax Rates:
• Lubricating oils and greases: ₱4.50 per liter of volume capacity (Section 1(1)).
- Credit for specific taxes paid on purchased feedstock used in manufacturing.
- Exemption for lubricating oils and greases produced from basestocks and additives on which specific tax has been paid.
• Processed gas: ₱0.05 per liter of volume capacity (Section 1(2)).
• Waxes and petroleum: ₱3.50 per kilogram (Section 1(3)).
• Denatured alcohol for motive power: ₱0.05 per liter of volume capacity (Section 1(4)).
- If mixed with gasoline, only the alcohol content is subject to tax.
• Naphtha, regular gasoline, and similar products: ₱2.28 per liter of volume capacity (Section 1(5)).
• Premium gasoline: ₱2.52 per liter of volume capacity (Section 1(6)).
• Aviation turbo jet fuel: ₱2.38 per liter of volume capacity (Section 1(7)).
• Kerosene: ₱0.50 per liter of volume capacity (Section 1(8)).
• Diesel fuel oil and similar fuels: ₱0.45 per liter of volume capacity (Section 1(9)).
• Liquefied petroleum: ₱0.00 per liter, except when used for motive power (Section 1(10)).
• Asphalts: ₱0.56 per kilogram (Section 1(11)).
• Bunker fuel oil and similar fuels: ₱0.00 per liter of volume capacity (Section 1(12)).
• Naphtha used as raw material for petrochemical products: ₱0.00 per liter of volume capacity (Section 1(13)).
- Domestic naphtha must be utilized before importing.
- By-products from processing naphtha into petrochemical products are subject to applicable specific taxes.
Repealing Clause and Effectivity
• Repeals or modifies inconsistent laws, decrees, executive orders, issuances, rules, and regulations (Section 2).
• Takes effect upon approval (Section 3).