Requiring Gasoline and Liquified Petroleum Gas Dealers to Segregate their Sales of Gasoline and Liquified Petroleum Gas Respectively, from their Sales of Other Articles for Purposes of Implementing LOI 663 in 1979

November 23, 1978 REVENUE MEMORANDUM CIRCULAR NO. 103-78 SUBJECT : Requiring Gasoline and Liquified Petroleum Gas Dealers to Segregate their Sales of Gasoline and Liquified Petroleum Gas Respectively, from their Sales of Other Articles for Purposes of Implementing LOI 663 in 1979 TO : All Internal Revenue Officers and Others Concerned Under LOI 663, gasoline dealers registered with the Ministry of Energy are granted a subsidy equivalent to the difference between the graduated annual fixed tax imposed under PD 1158-A, as amended by PD 1457, and that previously imposed under PD 69. In a subsequent communication the President approved the inclusion of liquified petroleum gas dealers within the coverage of said Letter of Instructions. Since the subsidy is limited only to sales of gasoline and liquified petroleum gas (LPG), it is imperative that the sales in 1978 of these subsidized articles should be segregated from the sales of other articles in the same year for purposes of computing the fixed tax due in 1979. Accordingly, in preparing BIR Form 2528 [Business (Fixed) Tax Return] for 1979 on the basis of 1978 sales, the said dealers should be guided by the following computation: Gross Sales for 1978: Gasoline P1,500,000 Other Articles 800,000 Total Gross Sales P2,300,000 ======== Graduated fixed tax due on P2,300,000 under the new rates prescribed by P.D. 1158-A as amended by P.D. 1457 P9,000 Less: Amount of Subsidy Sales of gasoline P1,500,000 ========= Graduated fixed tax due under: New rates P5,000 Old rates 2,625 Amount of subsidy P2,375 Amount payable to the BIR P6,625 ========= Gasoline dealers who fail to segregate their sales of gasoline from their sales of other articles will not be entitled to the subsidy. The same shall hold true with respect to liquified petroleum gas dealers. BIR Form 2528 should be filed in triplicate, with the triplicate copy to be attached to the report of the Regional Director concerned. To avoid delay in processing claims for subsidy to be filed with the Ministry of Energy, Regional Directors, thru the Chiefs of Assessment Branches, are enjoined to observe strictly the procedure illustrated hereon. They should submit to the Commissioner, through the Indirect Taxes Division, not later than March 31, 1979, two tabulated reports, one for dealers of gasoline and the other for dealers in liquified petroleum gas, each report containing the following information: cdt 1. Name, TAN and Address of dealers; 2. 1978 total gross sales; 3. 1978 sales of gasoline or of LPG, as the case may be; 4. RTR/ROR No.; 5. Name and address of bank where paid; 6. Date Paid; 7. Amount Paid; 8. Amount due under new rate; 9. Amount due under old rate; and 10. Amount to be subsidized. All internal revenue officers concerned are hereby enjoined to be guided accordingly and to give this circular as wide a publicity as possible. EFREN I. PLAN Acting Commissioner