MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 1089
PRESCRIBING THE SPECIFIC TAX ON DISTILLED SPIRITS OR ALCOHOL TO BE USED FOR BLENDING WITH GASOLINE OR OTHER MOTOR FUELS FOR MOTIVE POWER
WHEREAS, in view of escalating crude oil and petroleum prices, it is necessary that indigenous sources of energy be used to the fullest extent possible;
WHEREAS, one of the feasible alternatives is the preparation of an admixture of alcohol and motor gasoline for use in motive power;
WHEREAS, the taxation of distilled spirits or alcohol for the manufacture of intoxicating beverages is imposed for sumptuary reasons which is different from the purpose in taxing alcohol for blending with motor gasoline for motive power such that the latter alcohol shall pay the equivalent rate of specific tax on motor gasoline so that all motor fuels shall contribute equally to the cost of construction, maintenance and repair of highways and bridges;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by...
Details
Amends
n/a
Amended by
n/a
Presidential Decrees
Prescribing The Specific Tax On Distilled Spirits Or Alcohol To Be Used For Blending With Gasoline Or Other Motor Fuels For Motive Power
Presidential Decree No. 1089
Summary of Presidential Decree No. 1089
Taxation of Distilled Spirits or Alcohol for Blending with Gasoline or Other Motor Fuels
- Ethyl alcohol, denatured alcohol or distilled spirits produced domestically from local raw materials, when removed from production for delivery to oil companies for blending with motor gasoline or other motor fuels for motive power, shall be subject to specific tax at the same rate as the specific tax on automotive gasoline of the higher octane rating, regardless of proof or alcoholic strength. (Section 1)
- If denatured alcohol for motive power taxable under Section 142(d) of the National Internal Revenue Code is further mixed or blended with motor gasoline or other motor fuels, it shall be subject to specific tax at the same rate as the tax on motor gasoline of the higher octane rating instead of the rate prescribed under Section 142(d). (Section 1)
- If rectified or ethyl alcohol is to be blended with motor gasoline or other motor fuels for motive power, it must first be suitably denatured and rendered unfit for manufacturing intoxicating beverages before removal from the distillery, rectifying plant or place of production. (Section 1)
- The Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, shall promulgate appropriate rules and regulations to implement this Decree. (Section 2)
- This Decree shall take effect upon the issuance of rules and regulations. (Section 3)
Taxation of Distilled Spirits or Alcohol for Blending with Gasoline or Other Motor Fuels
- Ethyl alcohol, denatured alcohol or distilled spirits produced domestically from local raw materials, when removed from production for delivery to oil companies for blending with motor gasoline or other motor fuels for motive power, shall be subject to specific tax at the same rate as the specific tax on automotive gasoline of the higher octane rating, regardless of proof or alcoholic strength. (Section 1)
- If denatured alcohol for motive power taxable under Section 142(d) of the National Internal Revenue Code is further mixed or blended with motor gasoline or other motor fuels, it shall be subject to specific tax at the same rate as the tax on motor gasoline of the higher octane rating instead of the rate prescribed under Section 142(d). (Section 1)
- If rectified or ethyl alcohol is to be blended with motor gasoline or other motor fuels for motive power, it must first be suitably denatured and rendered unfit for manufacturing intoxicating beverages before removal from the distillery, rectifying plant or place of production. (Section 1)
- The Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, shall promulgate appropriate rules and regulations to implement this Decree. (Section 2)
- This Decree shall take effect upon the issuance of rules and regulations. (Section 3)