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PRESIDENTIAL DECREE NO. 1889
PRESIDENTIAL DECREE NO. 1889 -
LEVYING A SURTAX ON EXTRAORDINARY GAINS REALIZED BY OIL COMPANIES FROM
PETROLEUM PRODUCTS
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WHEREAS,
the immediate price increases on the whole range of refined or blended
petroleum products have brought about extraordinary gains for oil
companies on account of the sale at higher prices of finished products,
processed from crude oil and other base stocks, purchased or acquired
by them before the price adjustment; and
WHEREAS, a part of such extraordinary and "unearned" gains should be
utilized for the benefit of a greater number of our people.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order the following:cralaw:red
Section 1. Surtax on Extraordinary Gains; Rate of
Surtax. — In addition to the income tax imposed under Title II of the
National Internal Revenue Code, there is hereby imposed a surtax of
sixty-five (65%) per cent on extraordinary gains realized by oil
companies as a result of price increases authorized for petroleum
products, which surtax shall be allowed as part of the cost of
petroleum product sold on or after November 3, 1983. chanroblesvirtualawlibrary
Section 2. Computation of Extraordinary Gains. — The
extraordinary gains shall be measured by the difference between the
approved wholesale posted prices of refined petroleum products
immediately before the authorized price increases and the new posted
prices multiplied by the number of units of petroleum products existing
as of the day of effectivity of the price increases. Extraordinary
gains shall also refer to the aggregate increases in the value of crude
oil and base stocks.
Section 3. Time, Manner and Place of Payment. — The
surtax herein imposed shall be paid within thirty (30) days following
the promulgation of this Decree. The rules and regulations authorized
under Section 5 hereof may provide for installment payments.
A return shall be filed at the time of payment with the Commissioner of
Internal Revenue.
Section 4. Penalties. — Failure to pay the tax and
to file the corresponding tax return as hereinabove specified, as well
as any other violations of this Decree, shall be subject to surcharges,
interests and penalties provided under Title II of the National
Internal Revenue Code.
Section 5. Rules and Regulations. — The Minister of
Finance upon recommendation of the Commissioner of Internal Revenue and
in consultation with the Minister of Energy shall promulgate rules and
regulations to implement the provisions of this Decree.
Section 6. Repealing Clause. — All acts, decrees,
executive and administrative orders and other issuances which are
inconsistent herewith, are hereby repealed or modified
accordingly. chanroblesvirtualawlibrary
Section 7. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 3rd day of November nineteen hundred and eighty-three.
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