Providing Guidelines for the Collection of the Specific and Ad Valorem Tax on Certain Petroleum Products under P.D. 1994 as Amended by Executive Order No. 1076

January 2, 1986 REVENUE MEMORANDUM ORDER NO. 01-86 SUBJECT : Providing Guidelines for the Collection of the Specific and Ad Valorem Tax on Certain Petroleum Products under P.D. 1994 as Amended by Executive Order No. 1076 TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, Presidential Decree No. 1994 as amended by Executive Order No. 1076 was issued revising the specific and ad valorem taxes on certain petroleum products in order to recoup the foregone revenues arising in the reduction from 27.5% to 22% customs duties imposed on crude oil effective January 1, 1986. Since the stock inventories of all oil companies as of December 31, 1985 were manufactured out of crude oil which was previously taxed on a higher rate of duty, it is fair and equitable that the imposition of the new rates imposed under P.D. 1994 as amended, be made in a manner as not to result in the double-taxation of such stock inventories. Accordingly, the new rates provided for under P.D. 1994, as amended shall not apply to such inventories. aisa dc A. General Procedure - In implementing this Order, the following measures must be adopted and strictly enforced: 1. Require all the oil companies to submit their stock inventories ending December 31, 1985; 2. The Bureau of Internal Revenue should set up separate books for this purpose; 3. A periodic verification must be conducted by the Bureau of Internal Revenue to monitor all movements of the stock inventories concerned; and 4. A report should be made thereon upon the final dispositions of the stock inventories of all the oil companies. cd B. Repealing Clause. - All revenue memorandum orders, general circulars and memoranda inconsistent herewith are hereby repealed and/or amended accordingly. C. Effectivity - This Order shall take effect immediately. (SGD.) RUBEN B. ANCHETA Acting Commissioner