INCREASING THE SPECIFIC TAX ON LUBRICATING OILS, GASOLINE, BUNKER FUEL OIL, DIESEL FUEL OIL, AND OTHER SIMILAR PETROLEUM PRODUCTS LEVIED UNDER SECTIONS 142, 144 AND 145 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND GRANTING PROVINCES, CITIES AND MUNICIPALITIES CERTAIN SHARES IN THE SPECIFIC TAX ON SUCH PRODUCTS

• Number: Presidential Decree No. 436
• Sections: 9

Preamble

WHEREAS, in order to accelerate the prosecution of

nationwide infrastructure programs the local governments must

participate more actively and to a greater extent;

WHEREAS, local government revenues arc found to be

inadequate for purposes of financing the maintenance and repair of

existing roads and bridges, as well as new construction and improvement

projects; and

WHEREAS, it is the policy to provide the local governments

with sufficient resources in areas of governmental operations that

cannot be supported by local funds;

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

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

do hereby decree, order and make as part of the law of the land:

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 minerals and

other fuels. — On refined and manufactured mineral oils and motor

fuels, there shall be collected the following taxes:

X X X

"(b) Lubricating oils, per liter of volume capacity, fifty

centavos;

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

per liter of volume capacity, twenty-nine centavos."

X X X

"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 of volume capacity, one and one-half centavos.

"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, per liter of

volume capacity, ten and one-half centavos."

Section 2

SEC. 2. In addition to the internal revenue allotments

under Presidential Decree No. 144 and the Highway Special Fund

allotments under Republic Act No. 917, as amended by Presidential Decree

No. 17, and further amended by Presidential Decree Nos. 130 and 320,

provinces, cities and municipalities shall share in the specific taxes

on the following petroleum products in such amounts as may be equivalent

to the collections therefrom at the rates indicated hereunder:

Lubricating oils, per liter of volume capacity — twenty

centavos;

Naphtha, gasoline and all other similar products of

distillation, per liter of volume capacity — four centavos;

On bunker fuel oil, and on all similar fuel oils, having

more or less the same generating power, per liter of volume capacity —

one-half centavo.

On diesel fuel oil, and on all similar fuel oils, having

more or less the same generating power, per liter of volume capacity —

one-half centavo.

The additional allotment is in lieu of local taxes imposed on

petroleum products and for this purpose, Section 24 of Presidential

Decree No. 231, otherwise known as the Local Tax Code, has been repealed

by Presidential Decree No. 426 on March 30, 1974.

Section 3

SEC. 3. The shares of provinces, cities and

municipalities shall be allotted on the basis of the collections in

specific taxes during the second fiscal year immediately preceding the

current fiscal year in the following proportions:

20% of total shares to provinces

30% of total shares to municipalities

50% of total shares to chartered cities

Section 4

SEC. 4. The allotment of each province, city and

municipality shall be determined on the basis of the following formula:

Seventy percent (70%) — Population

Twenty percent (20%) — Land Area

Ten percent (10%) — Equal Sharing

Section 5

SEC. 5. The shares of provinces, cities and municipalities

shall accrue entirely to their respective Road and Bridge Funds.

Section 6

SEC. 6. The Secretary of Finance shall issue the

necessary rules and regulations for the prompt and effective

implementation of this Decree.

Section 7

SEC. 7. All laws or parts of laws inconsistent herewith

are hereby revoked or modified accordingly.

Section 8

SEC. 8. This Decree shall take effect on April 16, 1974.

Done in the City of Manila, this 13th day of April, 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

Finance Department Order No. 13-74, dated April 29, 1974, was

issued by the Department of Finance for the implementation of

Presidential Decree No. 436.