INCREASING THE SPECIFIC TAX ON KEROSENE, LUBRICATING OIL, GASOLINE, BUNKER FUEL OIL AND DIESEL FUEL OIL AND IMPOSING SPECIFIC TAX ON OTHER REFINED AND MANUFACTURED MINERAL OILS BY AMENDING SECTIONS 142, 144 AND 145 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED.<SUP STYLE="COLOR: RGB(255, 0, 0);">[*]</SUP>

• Number: Presidential Decree No. 392
• Sections: 3

Preamble

WHEREAS, in order to accelerate the economic and social

development of the country, the Government must provide the construction

and improvement of highways, roads, bridges and other infrastructures;

WHEREAS, the expected tax revenues based on the present

rates of specific taxes are still inadequate to carry on the present

program of highway improvement and development;

WHEREAS, notwithstanding the last increase in the rate of

specific tax on gasoline, the tax on gasoline in the Philippines is

still one of the lowest in the world as revealed in a comparative study

of the gasoline taxes in several countries/cities;

WHEREAS, in order to improve and simplify tax

administration, it is desirable to adopt a uniform tax treatment for all

refined and manufactured petroleum products; and

WHEREAS, the increase in tax on motor fuels and oil is

consistent with the present policy to conserve fuel;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution as

Commander-in-Chief of all the Armed Forces of the Philippines, and

pursuant to Proclamation No. 1081, dated September 21, 1972, and General

Order No. 1, dated September 22, 1972, do hereby order and decree the

following:

Section 1

SECTION 1. Sections 142, 144 and 145 of the National

Internal Revenue Code, as amended, are hereby further amended to read as

follows:

"SEC. 142. Specific tax on manufactured oils and other

fuels. — On refined and manufactured mineral oils and motor fuels, there

shall be collected the following taxes:

(a) Kerosene and aviation turbo jet fuel, per liter of volume

capacity, five centavos;

(b) Lubricating oils, per liter of volume capacity, thirty

centavos;

(c) Naphtha, gasoline and all other similar products of

distillation, per liter of volume capacity, twenty-five centavos;

(e) Process gas, per liter of volume capacity, two centavos;

(f) Thinners and solvents, per liter of volume capacity, fifteen

centavos;

(g) Liquefied petroleum gas, per kilogram, nine centavos;

(h) Asphalts, per kilogram, five centavos; and

(i) Greases, waxes and petroleum, per kilogram, thirty-five

centavos."

"SEC. 144. Specific tax on bunker fuel oil. — On

fuel oil, commercially known as bunker fuel oil, and on all similar fuel

oils, having more or less the same generating power, there shall be

collected, per liter, one centavo."

"SEC. 145. Specific tax on diesel fuel oil. — On

fuel oil, commercially known as diesel fuel oil, and on all similar fuel

oils, having more or less the same generating power, there shall be

collected, per liter, ten centavos."

Section 2

SEC. 2. This Decree shall take effect at 12:01 a.m.,

February 18, 1974.

Done in the City of Manila, this 17th day of February, in the

year of Our Lord, nineteen hundred and seventy-four.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ALEJANDRO MELCHOR

Executive Secretary

[*] Amended by Presidential

Decree No. 436.