AN
ACT AMENDING SECTION 145, PARAGRAPH (B), OF THE NATIONAL INTERNAL
REVENUE
CODE, AS AMENDED.
Section
1. Section 145, paragraph (b),
of the National Internal Revenue Code, as amended, is hereby further
amended
by adding a new item (4) to read as follows: chan
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"Ad
Valorem
Tax
Rate
"(4) Naptha
when used as a raw material in the production of petrochemical products
_____ 0% Provided, That naphtha processed by domestic refineries, if
available
as determined by the Energy Regulatory Board, shall be utilized before
any naphtha may be imported for this purpose: Provided, further, That
the
by-product including fuel oil, diesel fuel, kerosene, pyrolysis
gasoline,
liquefied petroleum gases and similar oils having more or less the same
generating power, which are produced in the processing of naphtha into
petrochemical products shall be subject to the applicable ad valorem
tax
specified in paragraph (b) of this section, except when such
by-products
are transferred to any of the local oil refineries through sale,
barter,
or exchange, for the purpose of further processing or blending into
finished
products which are subject to ad valorem tax under the said paragraph
(b)
of this section."chan
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`Sec.
2. The Bureau of Internal Revenue
with the approval of the Department of Finance shall promulgate rules
and
regulations necessary for the effective implementation of this
Act. chan
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Sec.
3. This Act shall take effect
after fifteen (15) days following its publication either in the
Official
Gazette or a newspaper of general circulation in the Philippines. chan
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Approved:
October 30, 1989
