EXECUTIVE ORDER NO. 312 December 16, 1987
REDUCING THE RATE OF TAX ON INDIGENOUS PETROLEUM AS PROVIDED FOR UNDER SECTION 129, (AS RENUMBERED TO SECTION 151 (a) (4) UNDER EXECUTIVE ORDER NO. 273, OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED.
WHEREAS, the tax on indigenous petroleum is intended to equalize the tax and duty treatment of imported crude oil and indigenous petroleum;
WHEREAS, Executive Order No. 303 dated August 25, 1987 reduced from Twenty Percent (20%) Ad Valorem to Fifteen (15%) Ad Valorem the import duty on imported crude oil;
WHEREAS, Executive No. 311 dated December 10, 1987 reduced the tax on indigenous petroleum from Twenty-Two Percent (22%) to Fifteen Percent (15%) as a consequence of the reduction of the duty rate on imported crude oil under Executive Order No. 303 dated August 25, 1987;
WHEREAS, Executive Order No. 306 dated October 20, 1987 further reduced from Fifteen Percent (15%) Ad Valorem to Ten Percent (10%) Ad Valorem the import duty on imported crude oil;
WHEREAS, in order to...
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Executive Orders
Reducing the Rate of Tax on Indigenous Petroleum as Provided For Under Section 129, (As Renumbered To Section 151 (A) (4) Under Executive Order No. 273, of the National Internal Revenue Code, as Amended.
Executive Order No. 312
Summary of Executive Order No. 312
Reducing the Rate of Tax on Indigenous Petroleum
• Reduces the excise tax rate on indigenous petroleum from 15% to 10% of the fair international market price. (Sec. 1)
• Pending guidelines to determine the fair international market price, the contract price in an arms length transaction between the petroleum producer and buyer, including freight and insurance premium covering transportation to domestic refineries, shall be used as the tax base. (Sec. 2)
• Authorizes the Commissioner of Internal Revenue to promulgate rules, regulations, guidelines, or issuances necessary for effective implementation. (Sec. 3)
• Repeals or modifies inconsistent orders, issuances, rules, regulations, and other issuances. (Sec. 4)
• Takes effect immediately. (Sec. 5)
Reducing the Rate of Tax on Indigenous Petroleum
• Reduces the excise tax rate on indigenous petroleum from 15% to 10% of the fair international market price. (Sec. 1)
• Pending guidelines to determine the fair international market price, the contract price in an arms length transaction between the petroleum producer and buyer, including freight and insurance premium covering transportation to domestic refineries, shall be used as the tax base. (Sec. 2)
• Authorizes the Commissioner of Internal Revenue to promulgate rules, regulations, guidelines, or issuances necessary for effective implementation. (Sec. 3)
• Repeals or modifies inconsistent orders, issuances, rules, regulations, and other issuances. (Sec. 4)
• Takes effect immediately. (Sec. 5)