AMENDING SECTION 192 (3) OF THE NATIONAL INTERNAL REVENUE CODE OF 1977

• Number: Presidential Decree No. 1671
• Sections: 3

Preamble

WHEREAS, it is

the policy of the government to levy an annual privilege fixed tax on

business dealing in goods subject to specific tax;

WHEREAS, gasoline and LPG dealers

although selling

products that are subject to specific tax are presently subjected to a

graduated annual privilege tax based upon their annual gross

sales;

WHEREAS, the said dealers are

performing a function

vital to the country and a tax on them which is made dependent on the

price of oil products is not conducive to the viability of the

industry;

WHEREAS, due to the high cost of

oil products, there

is a need to stabilize the tax and to classify the industry under the

same category as other dealers of goods subject to specific

tax;

NOW, THEREFORE, I, FERDINAND E.

MARCOS, President of

the Philippines by virtue of the powers vested in me by the

Constitution, do hereby order and decree the following:

Section 1

SECTION 1. Section 192 (3) of the

National Internal

Revenue Code of 1977, as amended by Presidential Decree No. 1671 is

hereby amended by adding two new paragraphs after paragraph (oo) as

follows:

"(pp) Dealers of gasoline and/or petroleum products shall be

subject to an annual fixed tax as follows:

1.

Class

"A'' service stations

P12,000

2.

Class "B" service

stations

6,000

3.

Class "C" service

stations

3,000

4.

Filling Stations

1,000

5.

Curb pumps

500

For the above purposes, gasoline stations shall be defined as

follows:

Service Station

— petroleum products

retail outlet with a building and driveway located on premises near or

abutting a street or highway where gasoline, kerosene, diesel,

lubricants and any of their derivatives including car care products may

be dispensed and sold and car care services rendered to motorists and

the general public.

Filling Station — petroleum

retail outlet with

building, driveway and pump island. Its business is generally confined

to the sale of gasoline, kerosene, diesel, lubricants and any of their

derivatives. It includes marine outlets, whether mobile or stationery.

Curb Pumps — petroleum

products retail outlet which

generally has no separate building and driveway and offers no other

services except to sell gasoline, kerosene, diesel, lubricants and any

of their derivatives. Filling of the customer's vehicle or a purchaser's

receptacle is done at the curb side of a road.

Service stations are further classified into Class A, B and C with

following general description:

Land

Area

(in sq. m.)

__________

Lube

Days

Pump

Island

Wash

Rack

Hoist

_____________

Class "A"

1501

or

more

2(minimum)

3(minimum) (minimum)

Class "B"

1001

—

1500

2(maximum)

2(minimum) 1

Class "C"

1000

or less

l(maximum)

l(minimum) 1

"(qq) Dealers of liquefied petroleum gas, six thousand pesos,

if

the annual sales during the preceding year exceeds 1,200,000 kilograms;

four thousand pesos if the sales exceeds 900,000 kilograms but does not

exceed 1,200,000 kilograms; two thousand pesos if the sales exceeds

600,000 kilograms but does not exceed 900,000 kilograms; one thousand

pesos if the sales exceed 300,000 kilograms but does not exceed 600,000

kilograms; and five hundred pesos if the sales does not exceed 300,000

kilograms."

Section 2

SECTION 2. This Decree shall take

effect beginning calendar year 1980.

Done in the City of Manila, this 28th day of January in the

year of Our Lord, nineteen hundred and eighty.

(Sgd.)

FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.) JUAN C.

TUVERA

Presidential Assistant