Article 61p. 61

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

refineries

through

sale,

barter

or exchange, for the

purpose of further processing or blending into finished

products which are subject to excise tax under this

Section.

For the period covering 2018 to 2020, the scheduled

increase in the excise tax on fuel as imposed in this

Section shall be suspended when the average Dubai

crude oil price based on Mean of Platts Singapore (MOPS)

for three (3) months prior to the scheduled increase of the

month reaches or exceeds Eighty dollars (USD80) per

barrel.

Provided , That the Department of Finance shall perform

an annual review of the implementation of the excise tax

on fuel and shall, based on projections provided and

recommendations

of

the

Development

Budget

Coordination

Committee,

as

reconciled

from

the

conditions

as

provided

above,

recommend

the

implementation or suspension of the excise tax on fuel:

Provided, further, That the recommendation shall be

given

on

a

yearly

basis:

Provided,

finally,

That any

suspension of the increase in excise tax shall not result in

any reduction of the excise tax being imposed at the time

of the suspension.

(as amended by RA No 10963)

SEC.

148-A.

Mandatory

Marking

of

All

Petroleum

Products. — In accordance with rules and regulations to

be issued by the Secretary of Finance, in consultation

with

the

Commissioner

of

Internal

Revenue

and

Commissioner of Customs and in coordination with the

Secretary of Energy, the Secretary of Finance shall require

the use of an official fuel marking or similar technology

on petroleum products that are refined, manufactured, or

imported into the Philippines, and that are subject to the

payment of taxes and duties, such as but not limited to,

unleaded premium gasoline, kerosene, and diesel fuel oil

after the taxes and duties thereon have been paid. The

mandatory marking of all petroleum products shall be in

accordance with the following:

(a) Official Markers. — There shall be a list of

chemical additives and corresponding quantitative

ratio as identified by the Secretary of Finance as

official fuel markers. The official fuel markers shall be

distinct

and,

to

the

greatest

degree

possible,

impossible to imitate or replicate: Provided , That the

official fuel marker must be unique to the Philippines

and that its chemical composition and quantitative

ratio must persist for at least three (3) years from their

application or administration to the unmarked fuel;

(b) The person, entity, or taxpayer who owns or enters

the petroleum products into the country, or the

person

to

whom

the

petroleum

products

are

consigned

shall

cause

and

accommodate

the

marking of the petroleum products with the official

marking agent;

(c) Internal revenue or customs officers shall be on

site to administer the declaration of the tax and

duties imposed on the petroleum products and to

oversee the application of the fuel marking;

(d) Absence of Official or Dilution of the Official

Marker; Presumptions. — In the event that the

petroleum products which do not contain the official

marker or which contain the official marker but are

diluted beyond the acceptable percentage approved

by the Secretary of Finance are found in the domestic

market or in the possession of anyone, or under any

situation where said petroleum products are subject

to duties and taxes, it shall be presumed that the

same were withdrawn with the intention to evade the

payment of the taxes and duties due thereon;

(e) The use of fraudulent marker on the petroleum

products shall be considered prima facie evidence

that the same have been withdrawn or imported

without

the

payment

of

taxes

and

duties

due

thereon;

(f) Engagement of Fuel Marking Provider. — The

government shall engage only one fuel marking

provider

who

shall,

under

the

supervision

and

direction of the Commissioners of Internal Revenue

and

Customs,

be

responsible

for

providing,

monitoring,

and

administering

the

fuel markers,

provide equipment and devices, conduct field and

confirmatory tests, and perform such other acts

incidental or necessary to the proper implementation

of the provisions of this Act: Provided , That the fuel

marking

provider

shall

provide

an

end-to-end

solution

to

the

Government,

including

the

establishment and operation of testing facilities that

are certified to ISO 17025;

(g) All costs pertaining to the procurement of the

official fuel markers shall be borne by the refiner,

manufacturer or importer, of petroleum products, as

the case may be: Provided , That the government may

subsidize the cost of official fuel markers in the first

year of implementation;

(h) Fuel Marking Program Funds . — In addition to

any appropriation to implement this Section and the

last paragraph of Section 171 of this Act, fees or

charges collected in relation to the fuel marking

program may be recorded as trust receipts of the

implementing

agencies,

and

shall

be exclusively

disbursed to defray the cost of services or equipment

required to fully implement the said program, subject

to

rules

and

regulations

to

be

issued

by

the

DOF-DBM-COA permanent committee;

(i)

The marking of petroleum products shall be

mandatory within five (5) years from the effectivity of

this Act; and

(j) The term 'random field test' shall refer to periodic

random inspections and tests performed to establish

qualitative and quantitative positive result of fuel

trafficking, which are conducted on fuels found in the

warehouses, storage tanks, gas stations and other

retail

outlets,

and

in

such

other

properties

or

equipment, including mechanisms of transportation,

of persons engaged in the sale, delivery, trading,

transportation, distribution, or importation of fuel

intended for domestic market.

The term 'confirmatory tests' shall refer to the accurate

and

precise

analytical test of the tested unmarked,

adulterated,

or

diluted

fuel

using

a

device,

tool or

equipment which will validate and confirm the result of

the field test, that is immediately conducted in an

accredited testing facility that is certified to ISO 17025.

(as amended by RA No 10963)

CHAPTER VI EXCISE TAX ON MISCELLANEOUS

ARTICLES

SEC. 149. Automobiles. - There shall be levied, assessed

and collected an ad valorem tax on automobiles based on

the manufacturer's or importer's selling price, net of

excise and value-added tax, in accordance with the

following schedule:

Net manufacturer's price/ importer's

selling price

Up to P 600,000

Over P 600,000 to P 1 Million

Over P1. Million to P 4 Million

Over P 4 Million

Rate

4%

10%

20%

50%

Provided , That, hybrid vehicles shall be subject to fifty

percent

(50%) of the applicable excise tax rates on

automobiles under this Section: Provided, further, That

© Compiled by RGL

61 of 201