December 16, 1987

EXECUTIVE ORDER NO. 312

REDUCING THE RATE OF TAX ON INDIGENOUS PETROLEUM AS PROVIDED FOR UNDER SECTION 129, (AS RENUMBERED TO SECTION 151 (a) (4) UNDER EXECUTIVE ORDER NO. 273), OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED

WHEREAS, the tax on indigenous petroleum is intended to equalize the tax and duty treatment of imported crude oil and indigenous petroleum;

WHEREAS, Ad Valorem to Fifteen (15%) Ad Valorem the import duty on imported crude oil;

WHEREAS,

WHEREAS, Ad Valorem to Ten Percent (10%) Ad Valorem the import duty on imported crude oil;

WHEREAS, in order to maintain the equal tax and duty treatment of indigenous petroleum and imported crude oil, there is likewise a need to decrease the excise tax on indigenous petroleum to match the reduced duty on imported crude oil.

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, pursuant to Section 241 of the

SECTION 1. The rate of excise tax imposed on indigenous petroleum as provided for under Section 129, (as renumbered to Section 151 (a) (4) under cd

SECTION 2. For expediency and pending promulgation of guidelines to determine the fair international market price of indigenous petroleum, the contract price in an arms length transaction between the petroleum producer and the buyer including freight and insurance premium covering the transportation of the indigenous petroleum to the domestic refineries shall be used as the tax base in computing the excise tax due thereon.

SECTION 3. The Commissioner of Internal Revenue is hereby authorized to promulgate such rules and regulations, guidelines or issuances necessary to ensure effective implementation of the provisions of this Order.

SECTION 4. All orders, issuances, rules and regulations and other issuances or parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 5. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 16th day of December, in the year of Our Lord, Nineteen Hundred and Eighty-Seven.

Published in the Official Gazette, Vol. 83 No. 51 Page 6631-A on December 21, 1987.