Presidential Decree No. 436 (PD 436) — 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
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. 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."
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.
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
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
SEC. 5. The shares of provinces, cities and municipalities
shall accrue entirely to their respective Road and Bridge Funds.
SEC. 6. The Secretary of Finance shall issue the
necessary rules and regulations for the prompt and effective
implementation of this Decree.
SEC. 7. All laws or parts of laws inconsistent herewith
are hereby revoked or modified accordingly.
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.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
