NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE 
Senate Bill No. 71
^cnm'E
72 JUL-7 P2®0
Introduced by Senator Aquilino ”Kokoff Pimentel III
AN ACT SUSPENDING THE IMPOSITION OF VALUE- 
ADDED TAX AND EXCISE TAXES ON FUEL, AMENDING 
SECTIONS 106,107, AND 148 OF THE NATIONAL 
INTERNAL REVENUE CODE OF 1997, AS AMENDED
EXPLANATORY NOTE
Fuel prices have been rising. This can be attributed to geopolitical 
developments and other factors.
Based on Department of Energy monitoring as of 18 June 2022, the 
net increase in fuel prices since the start of the year 2022 stands at P28.70 
per liter for gasoline, P41.15 per liter for diesel, and P37.95 per liter for 
kerosene.1 Rising fuel prices have impacted the lives of the Filipino people 
as high fuel prices have led to higher inflation and increased the prices of 
essential goods and services. Annual inflation rate in the Philippines 
climbed to 5.4% in May 2022 from 4.9% in April, pointing to the highest 
level since November 2018.2
The Filipino People are suffering now. Therefore, we must do some 
remedial measures as soon as we can.
Danessa Rivera, "Another Oil Price Hike Looms - DOE," 18 June 2022, available at 
https: / /WWW.onenews.ph/articles/ another-oil-price-hike-looms-doe. Last accessed on 
22 June 2022.
See Summary Inflation Report of the Philippine Statistics Agency available at 
https: / / psa. gov, ph/statistics/survev/price/summary-inflation-report-consumer-price-
index-20 181 OO-mav-2022. Last accessed on 22 June 2022.


The passage of Republic Act No. 10963, otherwise known as the Tax 
Reform for Acceleration and Inclusion (TRAIN) Law, increased the excise 
tax rates on all petroleum products in three (3) incremental tranches 
beginning 1 January 2018 to 1 January 2020. Currently, the excise tax adds 
an extra 10 pesos to a liter of gasoline, and 6 pesos to diesel. This is 
excluding the Value-Added Tax which adds another 12% to the total cost of 
fuel.
The TRAIN Law allows for suspension of the scheduled increase in 
the excise tax on fuel for the period 2018 to 2020 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 US$ 
80 per barrel. As of 21 June 2022, the MOPS for Dubai crude oil already 
stood at US$ 113.34 per barrel.3 The DBCC estimates the benchmark price 
of Dubai crude oil to be within $90 to $110 per barrel in 2022.4
While the government of the Republic of the Philippines has no 
control over external factors, it does have control over its exactions on 
petroleum products. As a means of contributing to the easing of the adverse 
impact of rising fuel prices, now and in the future, this bill proposes to 
provide a mechanism for the automatic suspension of the imposition of 
value-added tax and excise tax on fuel to help alleviate the almost midnight 
gargantuan increase in prices which severely affect the entire Filipino 
Nation and is causing worrisome inflation right now as we are recovering 
from the effects of economic recession caused by the COVID-19 pandemic. 
The immediate relief, economic and financial, to the Filipino people and to 
businesses brought by an automatic suspension of the said VAT and excise 
tax on fuel in times of unanticipated or extra-ordinary rise in fuel prices, 
justifies the temporary foregoing of revenue for the government. Vnahin 
natin ang kapakanan ng taong bayan.
In view of the foregoing, the immediate passage of this bill is earnestly 
sought.
• V V
AQUILINb fkOKOM ^PIMENTEL III
3 See https: / / ph. investing, com / commodities / dubai-crude-oil-platts-futures-historical- 
data. Last accessed on 22 June 2022.
Id.


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE 
Senate Bill No. 71
§t tlje r.
72 JUL-7 P2m
mmmm:
Introduced by Senator Aquilino MKokon Pimentel HI
AN ACT
SUSPENDING THE IMPOSITION OF VALUE-ADDED TAX 
AND EXCISE TAXES ON FUEL, AMENDING SECTIONS 106, 
107, AND 148 OF THE NATIONAL INTERNAL REVENUE 
CODE OF 1997, AS AMENDED
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled:
1 
SECTION 1. Section 106 of the National Internal Revenue
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Code of 1997 (NIRC), as amended, is hereby further amended to read
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as follows:
"SEC. 106. Value-Added Tax on Sale of Goods or 
Properties. —
"(A) Rate and Base of Tax. - There shall be levied, 
assessed and collected on every sale, barter or exchange of 
goods or properties, value-added tax equivalent to twelve 
percent (12%) of the gross selling price or gross value in money 
of the goods or properties sold, bartered or exchanged, such tax 
to be paid by the seller or transferor: PROVIDED, THAT 
THE VALUE-ADDED TAX ON THE SALE OF FUEL AS 
USED IN SECTION 148 OF THIS ACT SHALL BE


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SUSPENDED WHEN THE DUBAI CRUDE OIL PRICE 
BASED ON MEAN OF PLATTS SINGAPORE (MOPS) 
REACHES OR EXCEEDS EIGHTY DOLLARS (USD 80) 
PER BARREL.”
XXX
SEC. 2. Section 107 of the National Internal Revenue Code of 
1997 (NIRC), as amended, is hereby further amended to read as 
follows:
"SEC. 107. Value-Added Tax on Importation of Goods.
"(A) In General. - There shall be levied, assessed and 
collected on every importation of goods a value-added tax 
equivalent to twelve percent (12%) based on the total value used 
by the Bureau of Customs in determining tariff and customs 
duties plus customs duties, excise taxes, if any, and other 
charges, such tax to be paid by the importer prior to the release 
of such goods from customs custody: Provided, That where the 
customs duties are determined on the basis of the quantity or 
volume of the goods, the value-added tax shall be based on the 
landed cost plus excise taxes, if any: PROVIDED, 
FURTHER, THAT THE VALUE-ADDED TAX IMPOSED 
ON THE IMPORTATION OF FUEL AS USED IN 
SECTION 148 OF THIS ACT SHALL BE SUSPENDED 
WHEN THE DUBAI CRUDE OIL PRICE BASED ON 
MEAN OF PLATTS SINGAPORE (MOPS) REACHES 
OR EXCEEDS EIGHTY DOLLARS (USD 80) PER 
BARREL.”
XXX
SEC. 3. Section 148 of the National Internal Revenue Code of 
1997 (NIRC), as amended, is hereby further amended to include the 
following as the last paragraph thereof:


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MSec. 148. Manufactured Oils and Other Fuels. — There 
shall be collected on refined and manufactured mineral oils and 
motor fuels, the following excise taxes which shall attach to the 
goods hereunder enumerated as soon as they are in existence 
such as:
XXX
THE EXCISE TAX ON FUEL AS IMPOSED IN THIS 
SECTION SHALL BE AUTOMATICALLY SUSPENDED 
WHEN THE AVERAGE DUBAI CRUDE OIL PRICE 
BASED ON MOPS REACHES OR EXCEEDS EIGHTY 
DOLLARS (USD 80) PER BARREL.”
SEC. 4. Implementing Rules and Regulations. — Within thirty 
(30) days from the effeetivity of this Act, the Secretary of Finance 
shall, upon the recommendation of the Commissioner of Internal 
Revenue, promulgate the rules and regulations necessary for its 
effective implementation.
SEC. 5. Separability Clause. - Should any provision or part of 
this Act be declared unconstitutional or invalid, the other provisions 
and parts hereof, insofar as they are separable from the invalid ones, 
shall remain in full force and effect.
SEC. 6. Repealing Clause. - All laws, decrees, orders, issuances, 
rules and regulations or parts thereof which are inconsistent with this 
Act are hereby repealed or modified accordingly.
SEC. 7. Effeetivity. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in at least two (2) 
newspapers of general circulation.
Approved,