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 …

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. 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.”

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.