Amending Par. (B) of Sec. 128 of the NIRC Re: Revised Excise Tax Rates of Certain Petroleum Products

June 17, 1987 EXECUTIVE ORDER NO. 195 AMENDING PARAGRAPH (b) OF SECTION 128 OF THE NATIONALINTERNAL REVENUECODE, AS AMENDED, BY REVISING THE EXCISE TAX RATES OF CERTAIN PETROLEUM PRODUCTS WHEREAS, the upward trend in the world prices of crude oil has made it necessary to adjust the prices of domestic petroleum products; WHEREAS, in the adjustment of oil prices, it is likewise necessary to restructure the excise tax components thereof in order to cushion the impact of increased prices of petroleum products on the economy; and WHEREAS, in restructuring the excise tax components of certain petroleum products, it become imperative to adopt the pure ad valorem tax scheme in order to provide for a built-in flexibility to price changes and obviate frequent revisions of tax rates as a result of fluctuations in crude oil prices. NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order that: SECTION 1. Paragraph (b) of Section 128 of the National Internal Revenue Code, as amended, is hereby amended to read as follows: "Par. (b) For products subject to ad valorem tax only: PRODUCT AD VALOREM TAX RATE 1. Naphtha, gasoline and other similar products of distillation 48% 2. Aviation turbo jet fuel 48% 3. Thinners and solvents 48% 4. Fuel oil, commercially known as bunker oil and on similar fuel oils having more or less the same generating power 0% 5. Fuel oil, commercially known as diesel fuel oil, and on similar fuel oils having more or less the same generating power 24% 6. Kerosene 24% 7. Liquefied Petroleum gas 24% 8. Asphalts 24% "The ad valorem tax imposed in this paragraph shall be based on the company take or netback on the product as approved by the Energy Regulatory Board including the said ad valorem tax." SECTION 2. All orders, issuances, rules and regulations or any part thereof which are inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly. SECTION 3. This Executive Order shall take effect immediately. DONE in the City of Manila, this 17th day of June, in the year of Our Lord, Nineteen Hundred and Eighty-Seven. Published in the Official Gazette, Vol. 83 No. 25 Page 2912 on June 29, 1987.