Publishing Letter of Instructions No. 663 Dated January 27, 1978

February 28, 1978 REVENUE MEMORANDUM CIRCULAR NO. 026-78 SUBJECT : Publishing Le tter of Instructions No. 6 63 Dated January 27, 1978 TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is quoted below Letter of Instructions No. 663 providing subsidy to petroleum dealers affected by the new rates of privilege tax provided for in Presidential Decree No. 1158-A: "MALACAANG Manila "LETTERS OF INSTRUCTIONS NO. 663 "TO : The Secretary, Department of Energy The Secretary, Department of Finance The Director-General, National Economic & Development Authority In view of the representations of the gasoline dealers with respect to the new rate of privilege tax provided under Presidential Decree No. 1158-A, the following instructions are hereby issued: 1. Out of the funds of the Department of Energy, the affected petroleum dealers shall receive subsidy to the extent of the additional privilege tax. The Department of Energy shall, in consultation with the Department of Finance, formulate the rules and regulations to implement the subsidy operations. 2. The Director-General, National Economic and Development Authority, in coordination with the Department of Energy and the Department of Finance shall submit within ninety (90) days from receipt of this instruction recommendations with respect to the taxation of petroleum dealers. Done in the City of Manila, this 27th day of January in the year of Our Lord, Nineteen hundred and seventy-eight. (SGD) FERDINAND E. MARCOS" Pursuant to and by way of implementing the aforesaid decree, there is likewise quoted hereunder the letter dated January 30, 1978 of the Secretary of Energy, addressed to the Deputy Commissioner of Internal Revenue. aisa dc "Republika ng Pilipinas KAGAWARAN NG ENERHIYA Tanggapan ng Kalihim Manila January 30, 1978 "Deputy Commissioner Conrado Diaz Bureau of Internal Revenue BIR Building, Diliman Quezon City Dear Commissioner Diaz, "I summarize below the course of action agreed between the Department of Energy and the Bureau of Internal Revenue regarding the implementation of LOI 663: "1. The Department of Energy shall extend subsidy to service stations, filling stations, and curb pumps registered and licensed by the Oil Industry Commission to retail gasoline/diesel/kerosene for the year 1977 to the extent of the difference between the privilege tax imposed under Presidential Decree No. 1158-A and the previous privilege tax. "2. The BIR shall collect from these dealers partial payment of the privilege tax by an amount equal to the privilege tax under the old rates. Subsequently, the BIR shall determine the corresponding amount of subsidy, and submit a summary report and supporting documents, as may be required, to the Department of Energy. "3. The Department of Energy shall settle with the BIR for the account of the dealers the amount of subsidy after receipt and verification of foregoing report. "Very truly yours, "(SGD) GERONIMO Z. VELASCO It is to be noted that only service stations, filling stations and curb pumps registered and licensed by the Oil Industry Commission to retail gasoline/diesel/kerosene are entitled to subsidy by the Department of Energy to the extent of the difference between the graduated fixed annual tax imposed under the National Internal Revenue Code of 1977 and that prescribed under the Old Code. All Internal Revenue Officers and others concerned are enjoined to be guided accordingly and to give this circular as wide a publicity as possible. aisa dc EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8