THENATIONAL INTERNAL REVENUE CODEOF THE PHILIPPINES[Tax Reform Act of 1997]Republic Act No. 8424AN ACT
AMENDING
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR
OTHER
PURPOSES
TITLE VIEXCISE
TAXES
ON CERTAIN GOODS
CHAPTER
VIIEXCISE
TAX
ON MINERAL PRODUCTS
SEC.
151. Mineral Products. -
(A) Rates of Tax.
-
There shall be levied, assessed and collected on minerals, 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 all
nonmetallic
minerals and quarry resources, a tax of two percent (2%) based onthe actual market value of the gross output thereof at the time of
removal,
in the caseof those locally extracted or produced; or the value used by the Bureau
of Customs indetermining tariff and customs duties, net of excise tax and
value-added
tax, in the caseof importation.
Notwithstanding
the
provision of paragraph (4) of Subsection (A) of Section 151, locally
extracted
natural gas and liquefied natural gas shall be taxed at the rate of two
percent (2%);
(3) On all
metallic
minerals, a tax based on the actual market value of the gross output
thereofat the time of removal, in the case of those locally extracted or
produced;
or the value usedby the Bureau of Customs in determining tariff and customs duties, net
of excise tax andvalue-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 Republic Act No. 7729,one percent (1%);
(ii) On the
fourth
and the fifth years, 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 three percent (3%) of the fair international market pricethereof, on the first taxable sale, barter, exchange or such similar
transaction,
such taxto be paid by the buyer or purchaser before removal from the place of
production.
Thephrase "first taxable sale, barter, exchange or similar transaction"
means the transferof indigenous petroleum in its original state to a first taxable
transferee.
The fairinternational market price shall be determined in consultation with an
appropriategovernment 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.
(B) For Purposes
of This Section, the Term:
(1) "Gross output"
shall be interpreted as the actual market value of minerals or mineral
products or of bullion from each mine or mineral land operated as a
separate
entity, without any deduction from mining, milling, refining (including
all expenses incurred to prepare the said minerals or mineral products
in a marketable state), as well as transporting, handling, marketing or
any other expenses: Provided, That if the minerals or mineral
products
are sold or consigned abroad by the lessee or owner of the mine under
C.I.F.
terms, the actual cost of ocean freight and insurance shall be
deducted:
Provided, however, That in the case of mineral concentrate,
not
traded in commodity exchanges in the Philippines or abroad, such as
copper
concentrate, the actual market value shall be the world price
quotations
of the refined mineral products content thereof prevailing in the said
commodity exchanges, after deducting the smelting, refining and other
charges
incurred in the process of converting the mineral concentrates into
refined
metal traded in those commodity exchanges.
(2) "Minerals"
shall mean all naturally occurring inorganic substances (found in
nature)
whether in solid, liquid, gaseous or any intermediate state.
(3) "Mineral
products"
shall mean things produced and prepared in a marketable state by simple
treatment processes such as washing or drying, but without undergoing
any
chemical change or process or manufacturing by the lessee,
concessionaire
or owner of mineral lands.
(4) "Quarry
resources"
shall mean any common stone or other common mineral substances as the
Director
of the Bureau of Mines and Geo-Sciences may declare to be quarry
resources
such as, but not restricted to, marl, marble, granite, volcanic
cinders,
basalt, tuff and rock phosphate: Provided, That they contain no
metal or other valuable minerals in economically workable quantities.
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