WHEREAS,
the current economic crisis amounts to a grave emergency which effects
the stability of the nation and requires immediate action;chanroblesvirtualawlibrary
WHEREAS, it is also desirable to stabilize the prices of petroleum
products for a longer period despite exchange rate adjustments of world
market price changes;chanroblesvirtualawlibrary
WHEREAS, the issuance of this Decree is an essential and necessary
component of the national economic recovery program formulated to meet
and overcome the emergency;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
pursuant to the powers vested in me by the Constitution, do hereby
order and decree:cralaw:red
Section 1. There is hereby imposed on certain
manufactured oils and other fuels, bunker fuel oil and diesel fuel oil,
an ad valorem tax, as follows:cralaw:red
(a) Kerosene, fourteen per centum;chanroblesvirtualawlibrary
(b) Naptha, regular gasoline and all similar products
of distillation, twenty five per centum;chanroblesvirtualawlibrary
(c) Premium and aviation gasoline, twenty five per
centum;chanroblesvirtualawlibrary
(d) Thinners and solvents, twenty five per centum;chanroblesvirtualawlibrary
(e) Liquefied petroleum gas, fourteen per centum;chanroblesvirtualawlibrary
(f) Asphalt, fourteen per centum;chanroblesvirtualawlibrary
(g) Aviation turbo jet fuel, twenty five per centum;chanroblesvirtualawlibrary
(h) Fuel oil, commercially known as bunker fuel oil,
and on all similar fuel oils, having more or less the same generating
capacity, seven per centum;chanroblesvirtualawlibrary
(i) Fuel oil, commercially known as diesel fuel oil,
and on similar fuel oils, having more or less the same generating
capacity, twenty two per centum.
Section 2. The ad valorem tax shall be based on the
wholesale posted price net of specific and domestic ad valorem taxes of
the oil product concerned, as approved by the Board of Energy.
Section 3. The ad valorem tax shall be paid by the
manufacturer, producer, owner, person having possession of importer, at
the same time, in the same manner and subject to the same penalties, as
the Specific Tax, as prescribed in Presidential Decree No. 1158, as
amended.
Section 4. Proceeds realized from the ad valorem tax
shall accrue to the General Fund.
Section 5. Section 153 of Presidential Decree No.
1158, as amended, is hereby further amended to read as follows:cralaw:red
"Sec. 153. Specific Tax on manufactured oils and
other fuels. — On refined and manufactured mineral oils and motor
fuels, there shall be collected the following taxes which shall attach
to the articles hereunder enumerated as soon as they are in existence
as such:cralaw:red
"(a) Lubricating oil, per liter of volume capacity,
four pesos and fifty centavos;chanroblesvirtualawlibrary
"(b) Naptha, regular gasoline and all other similar
products of distillation, per liter of volume, capacity, one peso and
twenty nine centavos; Provided, That on premium and aviation gasoline
the tax shall be one peso and eighteen and one half centavos per liter
of volume capacity;chanroblesvirtualawlibrary
"(c) On denatured alcohol to be used for motive
power, per liter of volume capacity, one centavo: Provided, That,
unless otherwise provided for by special laws, if the denatured alcohol
is mixed with gasoline, the specific tax on which has already been
paid, only the alcohol content shall be subject to the tax herein
prescribed. For the purposes of this subsection, the removal of
denatured alcohol of not less than one hundred eighty degrees proof
(ninety per centum absolute alcohol) shall be deemed to have been
removed for motive power, unless shown to the contrary; chanroblesvirtualawlibrary
"(d) Processed gas, per liter of volume capacity,
five centavos;chanroblesvirtualawlibrary
"(e) Thinners and solvents, per liter of volume
capacity, one peso and twenty centavos;chanroblesvirtualawlibrary
"(f) Liquefied petroleum gas, per kilogram, sixty two
and one half centavos; Provided, That liquefied petroleum gas used for
motive power shall be taxed at a rate equivalent to the specific and ad
valorem tax on diesel fuel oil;chanroblesvirtualawlibrary
"(g) Greases, waxes and petrolatum, per kilogram,
four pesos and fifty centavos;chanroblesvirtualawlibrary
"(h) Aviation turbo jet fuel, per liter of volume
capacity, one peso and twenty centavos;chanroblesvirtualawlibrary
"(i) Fuel oil, commercially known as bunker fuel oil,
and on all similar fuel oils, having more or less the same generating
power, twenty five centavos per liter of volume capacity."
Section 6. The payments of Special Fund as provided
in Section 17 of Republic Act 6173, as amended, shall be abolished;
Provided, That petroleum products in the possession of the oil
companies which had been removed from the refinery or from the bonded
terminal but not yet sold, shall be subject to the same rate of special
fund impost prevailing before the effectivity of this Decree.
Section 7. The special Fund created under Section 8
paragraph (j), of Republic Act No. 6173, as amended, is hereby
abolished. Outstanding claims against the Special Fund shall be settled
from the existing resources and the balance, if any, shall be
transferred to the General Fund.
Section 8. There is hereby created a Special Account
in the General Fund to be designated as Oil Price Stabilization Fund
for the purpose of minimizing frequent price changes brought about by
exchange rate adjustments and/or an increase in world market prices of
crude oil and imported petroleum products. The Fund may be sources from
any of the following:cralaw:red
(a) Any increase in the tax collection from ad
valorem tax or customs duty imposed on petroleum products subject to
tax under this Decree arising from exchange rate adjustment, as may be
determined by the Minister of Finance in consultation with the Board of
Energy;chanroblesvirtualawlibrary
(b) Any increase in the tax collection as a result of
the lifting of tax exemptions of government corporations under
Presidential Decree No. 1931, as may be determined by the Minister of
Finance in consultation with the Board of Energy,
(c) Any additional tax to be imposed on petroleum
products to augment the resources of the Fund through an appropriate
Order that may be issued by the Board of Energy requiring payment by
persons or companies engaged in the business of importing,
manufacturing and/or marketing petroleum products.
The Fund created herein shall be used to reimburse the oil companies
for cost increases on crude oil and imported petroleum products
resulting from exchange rate adjustment and/or increase in world market
prices of crude oil.
The Fund shall be administered by the Ministry of Energy.
Section 9. The Minister of Finance shall promulgate
the necessary rules and regulations to implement this Decree.
Section 10. Sections 155 and 156 of Presidential
Decree No. 1158, as amended, and all laws, decrees, executive orders,
rules and regulations and other issuances, or parts thereof, which are
inconsistent herewith, are hereby repealed, amended or modified
accordingly. chanroblesvirtualawlibrary
Section 11. This Decree shall take effect on October
15, 1984.
Done in the City of Manila,
this 10th day of October, in the year of Our Lord, nineteen hundred and
eighty-four.
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