REPUBLIC ACT NO. 7729 - AN
ACT REDUCING THE EXCISE TAX RATES ON METALLIC AND NON-METALLIC MINERALS
AND QUARRY RESOURCES, AMENDING FOR THE PURPOSE SECTION 151(a) OF THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED
Section 1. Section 151(a) of the National Internal Revenue
Code, as amended, is hereby further amended to read as follows:
"Sec. 151. Mineral Products. — (a) Rates of Tax. —
There shall be levied, assessed and collected on mineral, mineral
products and quarry resources, excise tax as follows:
"(1) On coal and coke, a tax of ten pesos (P10.00)
per metric ton.
"(2) On non-metallic minerals and quarry resources, a
tax of two percent (2%) based on the actual market value of the annual
gross output thereof at the time of removal, in the case of those
locally extracted or produced; or the value used by the Bureau of
Customs in determining tariff and customs duties, net of excise tax and
value-added tax, in the case of importation.
"(3) On all metallic minerals, a tax based on the
actual market value of the gross output thereof at the time of removal,
in the case of those locally extracted or produced; or the value used
by the Bureau of Customs in determining tariff and customs duties, net
of excise tax and value-added tax, in the case of importation, in
accordance with the following schedule:
"(a) Copper and other metallic minerals:
"(i) On the first three (3) years upon the
effectivity of this Act, one percent (1%);
"(ii) On the fourth and fifth year, one and a half
percent (1 ½%); and
"(iii) On the sixth year and thereafter, two percent
(2%).
"(b) Gold and chromite, two percent (2%).
"(4) On indigenous petroleum, a tax of fifteen
percent (15%) of the fair international market price thereof, on the
first taxable sale, such tax to be paid by the buyer or purchaser
within 15 days from the date of actual or constructive delivery to the
said buyer or purchaser. The phrase 'first taxable sale, barter,
exchange or similar transaction' means the transfer of indigenous
petroleum in its original state to a first taxable transferee.
The fair international market price shall be determined in consultation
with an appropriate government agency.
"For the purpose of this subsection, 'indigenous petroleum' shall
include locally extracted mineral oil, hydrocarbon gas, bitumen, crude
asphalt, mineral gas and all other similar or naturally associated
substances with the exception of coal, peat, bituminous shale and/or
stratified mineral deposits."
Sec. 2. The Secretary of Finance shall, upon the
recommendation of the Commissioner of Internal Revenue, promulgate the
necessary rules and regulations for the effective implementation of
this Act.
Sec. 3. All laws, decrees, orders, rules, and
regulations, or parts thereof, inconsistent with the provisions of this
Act, are hereby repealed or modified accordingly.
Sec. 4. This Act shall take effect fifteen (15)
days after its complete publication in the Official Gazette or in at
least two (2) national newspapers of general circulation whichever
comes earlier.
Approved: June 2, 1994
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