EXECUTIVE ORDER NO. 311 December 10, 1987
REDUCING THE RATE OF TAX ON INDIGENOUS PETROLEUM AS PROVIDED FOR UNDER SECTION 129, (AS RENUMBERED TO SECTION 151 (a) UNDER EXECUTIVE ORDER NO. 273) OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED
WHEREAS, under Section 129 (as renumbered to Section 151 (a) (4) under Executive Order No. 273), of the National Internal Revenue Code, as amended, indigenous petroleum is subject to excise tax equivalent to twenty-two percent (22%) of the fair international market price thereof;
WHEREAS, the said 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 Percent (15%) Ad Valorem the import duty on imported crude oil;
WHEREAS, in order to maintain the equal tax and duty treatment of indigenous petroleum and imported crude oil, there is likewise a need to decrease the excise tax on indigenous petroleum to match the reduced duty...
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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) Under Executive Order No. 273) of the National Internal Revenue Code, as Amended
Executive Order No. 311
Summary of Executive Order No. 311
Reduction of Tax Rate on Indigenous Petroleum
- The excise tax rate on indigenous petroleum is reduced from 22% to 15% of the fair international market price. (Section 1)
- For expediency, the contract price in an arm's 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 for computing the excise tax due. (Section 2)
- The Commissioner of Internal Revenue is authorized to promulgate rules, regulations, guidelines, or issuances necessary for effective implementation. (Section 3)
- All orders, issuances, rules, regulations, and other issuances inconsistent with this Executive Order are repealed or modified accordingly. (Section 4)
- This Executive Order takes effect immediately. (Section 5)
Reduction of Tax Rate on Indigenous Petroleum
- The excise tax rate on indigenous petroleum is reduced from 22% to 15% of the fair international market price. (Section 1)
- For expediency, the contract price in an arm's 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 for computing the excise tax due. (Section 2)
- The Commissioner of Internal Revenue is authorized to promulgate rules, regulations, guidelines, or issuances necessary for effective implementation. (Section 3)
- All orders, issuances, rules, regulations, and other issuances inconsistent with this Executive Order are repealed or modified accordingly. (Section 4)
- This Executive Order takes effect immediately. (Section 5)