VA
Republic of the Philippines hese of
HOUSE OF REPRESENTATIVES / RECEIVED
Batasan Hills, Quezon City

NINETEENTH CONGRESS.
First Regular Session

HOUSE BILL No. 563

Introduced by
ACT Teachers Party-List Rep. FRANCE L. CASTRO,
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,
nd KABATAAN Party. it Rep. RAOUL DANNIEL A. MANUEL

AN ACT
REVERSING REGRESSIVE AND ANTI-POOR TAXATION, REPEALING
FOR THE PURPOSE CERTAIN SECTIONS OF REPUBLIC ACT NO. 10963
Rie OTHERWISE KNOWN AS TAX REFORM FOR ACCELERATION AND
INCLUSION ACT

EXPLANATORY NOTE

On January 1, 2018, Republic Act 10963 or the Tax Reform for Acceleration
and Inclusion (TRAIN) Law was implemented

In the first few months of the implementation of TRAIN Law. prices of
petroleum products rose, and prices of basic goods and services followed suit. Rice,
which is supposed to be VAT exempt, became more expensive by PI-2 per kilo.
according to the Kilusang Magbubukid ng Pilipinas, There was a P10 increase per kilo
for beet. meat and pork lean meat and P2 to P20 per kilo increase for dressed chicken.

Fares for Uber and Grab taxis have increased. and fare hikes for public utility
jeepneys and buses are in the offing. Electricity charges increased by February 2018.

Using 2018 as the base year period, the Philippine Statistics Authority reported
an inflation rate of 6.9% in September and October : 2018, a lot higher from the 3.4%
in January, The inflation hit successive three-year of 3.4% and 3.7% in January
and February 2018, coinciding with the initial implementation of the TRAIN law

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Citing the data from the PSA, dean of University of the Philippines (UP) Diliman
School of Statistics Dennis Mapa said that the tax reform law has both direct and indirect
effects on the cost of goods. with price hikes “particularly felt by the poor during the start
of the year.” He said that current cash transfers of P200 per family per month may not be
enough. Four years and repeated price hikes later, the amount of assistance remain nailed
at a paltry 200 per family per month

Yet, the Department of Finance on March 4. 2018 said that except for sugar-
sweetened beverages TRAIN had no impact on inflation.

The impact of TRAIN among the poor Filipinos could never be denied, While the
‘TRAIN law provides higher income tax exemption for those earning below P250,000
annually, it actually levies higher tax burden to the poor majority with the removal of
some VAT exemptions and introduction of new excise taxes on petroleum products and
sugar-sweetened beverages

According to IBON Databank in 2018, 60% poorest families or some 13.7 million
families will have decreased income while those in the upper 40% or the rich and high
income group comprising some 9.1 million families will have higher take home pay

Some 15.2 million families who earn minimum wages or below belong to the
informal sector who are already exempted from paying income taxes will not benefit
from income tax cuts, But these poor families are actually shouldering the higher cost of
goods and services as a result of the TRAIN Law.

The TRAIN Law contradicts a progressive and pro-poor taxation. The aim w
lower taxes for the poor and improve the quality of life of our people was negated by the
government’s drive to increase revenues. Instead of easing the burden of over-taxation.
the TRAIN Law worsens the misery of our people.

Instead of heavily taxing the poor through VAT and excise taxes on petroleum
products and sugar-sweetened beverages, higher taxes should be levied on those who
have more capacity. in our case. the big foreign and local corporations and landlords.
The poor and low-income families, on the other hand, should be taxed as lightly as
possible while provided with the much needed publicly-provided social and economic
services. Now after more than four years of its implementation, the inflation is again at
the uptake of 5.4% based on the PSA report for May 20: ind more price hikes are
bound to follow.

This Bill aims to reduce the tax burden on the poor majority by amending the
TRAIN Law. It repeals regressive taxes including the expansion of VAT coverage.
additional excise taxes on petroleum products and the excise taxes on sugar-sweetened
beverages. Repealing the regressive provisions of the TRAIN Law will help alleviate the
suffering of the people, especially the poor, from the soaring prices of food and basic
commodities, and the looming price hikes amid the ongoing COVID-19 pandemic.
Philippines economic crisis and international oil crisis



This Bill was first filed as House Bill 243 during the 18th Congress by the Bayan
Muna Partylist Reps. Carlos Zarate, Ferdinand Gaite and Eufemia Cullamat, ACT
Teachers Party-List Rep. France Castro, Gabriela Women’s Party Rep. Arlene Brosas and
Kabataan Partylist Rep. Sarah Elago.

‘The passage of this urgent Bill is earnestly sought.

Caml JO
R& ARLENE D. BROSAS Rep. RAOUL DANNIEL A. MANUEL
GABRIELA Women’s Party KABATAAN Party-List



Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Batasan Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No. 568

Introduced by

ACT Teachers Party-List Rep. FRANCE L. CASTRO,

GABRIELA Women’s Party Rep. ARLENE D. BROSAS,
and KABATAAN Party-List Rep. RAQUL DANNIEL A. MANUEL.

AN ACT
REVERSING REGRESSIVE AND ANTI-POOR TAXATION, REPEALING FOR
THE PURPOSE CERTAIN SECTIONS OF REPUBLIC ACT NO. 10963
OTHERWISE KNOWN AS TAX REFORM FOR ACCELERATION AND
INCLUSION ACT

Be it enacted by the Senate and House of Representatives of the Republic of the
Philippines in Congress assembled:

SECTION L. Section 12 of Republic Act 10963, otherwise known as the Tax Reform for
Acceleration and Inclusion Act, is hereby amended to read as follows:

SEC. 12 [Section 35 of the NIRC, as amended, is hereby repealed]
ALLOWANCE OF PERSONAL EXEMPTION FOR INDIVIDUAL
TAXPAYER. -

(A) IN GENERAL. - FOR PURPOSES OF DETERMINING THE
TAX PROVIDED IN SECTION 24 (A) OF THIS TITLE, THERE
SHALL BE OWED A BASIC PERSONAL EXEMPTION
AMOUNTING TO FIFTY THOUSAND PESOS (P50,000) FOR
EACH INDIVIDUAL TAXPAYER.

IN THE CASE OF MARRIED INDIVIDUALS WHERE ONLY ONE
OF THE SPOUSES IS DERIVING GROSS INCOME, ONLY SUCH
SPOUSE SHALL BE ALLOWED THE SONAL EXEMPTION.

(B) ADDITIONAL EXEMPTION FOR DEPEND! - THERE
SHALL BE ALLOWED AN ADDITIONAL EXEMPTION OF



TWENTY-FIVE THOUSAND PESOS (P25,000) FOR EACH
DEPENDENT NOT EXCEEDING FOUR (4).

THE ADDITIONAL EXEMPTION FOR D!
CLAIMED BY ONLY ONE OF TH
MARRIED INDIVIDUALS.

IN THE CASE OF LEGALLY SEPARATED SPOUSES,
ADDITIONAL EXEMPTIONS MAY BE CLAIMED ONLY BY THE
SPOUSE WHO HAS CUSTODY OF THE CHILD OR CHILDREN:
PROVIDED, THAT THE TOTAL AMOUNT OF ADDITIONAL
EXEMPTIONS THAT MAY BE CLAIMED BY BOTH SHALL NOT
EXCEED THE MAXIMUM ADDITIONAL EXEMPTIONS HEREIN
ALLOWED.

FOR PURPOSES OF THIS § A ‘DEPENDENT’
MEANS A_ LEGITIMATE, OR LEGALLY
ADOPTED CHILD CHIEFLY DEPENDENT UPON AND LIVING
WITH THE TAXPAYER IF SUCH DEPENDENT IS NOT MORE
THAN TWENTY-ONE (21) YEARS OF At UNMARRIED AND
Y EMPLOYED OR IF SUCH DEPENDENT,
S OF AGE, IS INCAPABLE OF SELF-SUPPORT
BECAUSE OF MENTAL OR PHYSICAL DEFECT.

(C) CHANGE OF STATUS. - IF THE TAXPAYER MARRIES OR
SHOULD HAVE ADDITIONAL DEPENDENT(S) AS DEFINED
ABOVE DURING THE TAXABLE YEAR, THE TAXPAYER MAY
CLAIM THE CORRESPONDING ADDITIONAL EXEMPTION, AS
THE CASE MAY BE, IN FULL FOR SUCH YEAR.

IF THE TAXPAYER DIES DURING THE TAXABLE YEAR, HIS
ESTATE MAY IM THE PERSONAL
ADDITIONAL — EX’ FOR HIMSELF AND
DEPENDENT(S) AS IF HE DIED AT THE CLOSE OF SUCH YEAR.

IF THE SPOUSE OR ANY OF THE DEP
ANY OF SUCH DEPENDENTS MARRIE!
ONE (21) YEARS OLD OR BECOM

NDENTS DIES OR IF
, BECOMES TWENTY-
AINFULLY EMPLOYED

DURING TE TAXABLE YEAR, TH AXPAYER MAY STILL.
CLAIM THE SAME EXEMPTIONS AS IF THE SPOUSE OR ANY
OF THE DEP! ENTS DIED, OR AS IF SUCH DEPENDENTS

MARRIED, BECAME TWE)
BECAME GAINFULLY EMPLé
YEAR.

-ONE (21) YEARS OLD OR
AT THE CLOSE OF SUCII

(D) PERSONAL EXEMPTION ALLOWABLE TO NONRESIDENT
ALIEN INDIVIDUAL. - A NONRESIDENT ALIEN INDIVIDUAL
AGED IN TRADE, BUSINESS OR IN THE EXERCISE OF A



PROFESSION IN THE PHILIPPINES SHALL BE ENTITLED TO A
PERSONAL EXEMPTION IN THE AMOUNT EQUAL TO THE
EXEMPTIONS ALLOWED IN THE INCOME TAX LAW IN THE
COUNTRY OF WHICH HE IS A SUBJECT - OR CITIZEN, TO
CITIZENS OF THE PHILIPPINES NOT RESIDING IN SUCH
COUNTRY, NOT TO EXCEED THE AMOUNT FIXED IN THIS
SECTION AS EXEMPTION FOR C! ENS OR RESIDENT OF
THE PHILIPPINES: PROVIDED, THAT ID NONRESIDENT
ALIEN SHOULD FILE A TRUE AND ACCURATE RETURN OF
THE TOTAL INCOME RECEIVED BY HIM FROM ALL SOURCES
IN THE PHILIPPINES, AS REQUIRED BY THIS TITLE.

SEC. 2. Section 33 of the same Act is hereby amended to read as follows:

SEC. 33. Section 108 of the NIRC, as amended, is hereby further amended
to read as follows:

SEC 108. Value-added Tax on Sale of Services and Use or Lease of
Properties. -

(A) Rate and Base of Tax. - There shall be levied, assessed and
collected, a value-added tax equivalent to twelve percent (12%) of
gross receipts derived from the sale or exchange of services,
including the use or lease of properties

The phrase “sale or exchange of services” means the performance of
all kinds or services in the Philippines for others for a fee,
remuneration or consideration, including those performed or
rendered by construction and service contractors, stock, real estate.
commercial, customs and immigration brokers; lessors of property,
whether personal or real; warehousing services; lessors or
distributors of cinematographic films; persons engaged in milling
processing. manufacturing or repacking goods for others.
proprietors, operators or keepers of hotels, motels, resthouses,
pension houses, inns, resorts; proprietors or operators of restaurants,
refreshment parlors, cafes and other eating places, including clubs
and caterers, dealers in securities; lending investors, transportation
contractors on their transport of goods or cargoes, including persons
who transport goods or cargoes for hire another domestic common
carriers by land relative to their transport of goods or cargoes;
common carriers by air and sea relative to their transport of
passengers, goods or cargoes from one place in the Philippines to
another place in the Philippines: [sales of electricity by generation
companies, transmission by any entity, and distribution companies
including electric cooperatives:] services of franchise grantees of
telephone and telegraph, radio and television broadcasting and all
other franchise grantees except those under Section 119 of this
Code; services of banks. non-bank financial intermediaries and



finance companies; and non-life insurance companies (except their
crop insurances), including surety, fidelity, indemnity and bonding
companies; and similar services regardless of whether or not the
performance thereof calls for the exercise or use of the physical or
mental faculties. The phrase “sale or exchange of services” shall
likewise include:

XXX
SEC. 3. Section 34 of the Same Act shall be amended to read as follows:

SEC. 109. Exempt Transactions.

(1) Subject to the provisions of Subsection (2) hereof, the following
transactions shall be exempt from the value-added tax:

XXX

(P) Sale of real properties not primarily held for sale to customers or held
for lease in the ordinary course of trade or business or real property utilized
for low-cost and socialized housing as defined by Republic Act No, 7279,
otherwise known as the Urban Development and Housing Act of 1992, and
other related laws, residential lot valued at One million pesos (P1,500,000)
and below, house and lot, and other residential dwellings valued at Two
million five hundred thousand pesos (P2, 500, 000) and below: [Provided,
That beginning January 1, 2021, the VAT exemption shall only apply to
sale of real properties not primarily held for sale to customers or held for
lease in the ordinary course of trade or business, sale of real property
utilized for socialized housing as defined by Republic Act No. 7279, sale of
house and lot, and other residential with selling price of not more than Two
million pesos (P2, 000, 000) and below:| Provided, [further,] That every
three (3) years thereafter, the amount herein stated shall be adjusted to their
present values using the Consumer Price Index. as published by the
Philippine Statistics Authority (PSA),

XXX
SEC. 4. Section 38 of the same Act is hereby amended to read as follows:

SEC. 38. Section 116 of the NIRC, as amended, is hereby further amended
to read as follows:

SEC. 116. TAX ON PERSONS EXEMPT FROM VALUE-
ADDED TAX (VAT). — ANY PERSON WHOSE SALES OR
RECEIPTS AR' XEMPT UNDER SECTION 109 (BB) OF
THIS CODE FROM THE PAYMENT OF VALUE-ADDED
TAX AND WHO IS NOT A VAT-REGISTERED PERSON
SHALL PAY A TAX EQUIVALENT TO THREE PERC



(3%) OF HIS GROSS QUARTERLY SALES OR RECEIPTS:
PROVIDED, THAT COOPERATIVES, AND BEGINNING
JANUARY 1, 2019 SELF-EMPLOYED AND
SSIONALS WITH TOTAL ANNUAL GROSS SALES.
AND/OR GROSS RECEIPTS NOT EXCEEDING TWO
MILLION (P2,000,000) SHALL BE EXEMPT FROM THE
THREE PERCENT (3%) GROSS RECEIPTS TAX HEREIN.
IMPOSED.

SEC. 5. Section 43 of the same Act is hereby amended to read as follows:

SEC. 43. Section 148 of the NIRC,
to read as follows:

amended, is hereby further amended

SEC. 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 as such:

[Effective January 1, 2018]

(a) Lubricating oils and greases, including but not limited to, base
stock for lube oils and greases, high vacuum distillates, aromatic
extracts, and other similar preparations, and additives for lubricating
oils and greases, whether such additives are petroleum based or not,
per liter and kilogram respectively, of volume capacity or weight,
[Eight pesos (P8.00)] FOUR PESOS AND FIFTY CENTAVOS.
(P4.50): Provided, however, That the excise taxes paid on the
purchased feedstock (bunker) used in the manufacture of excisable
articles and forming part thereof shall be credited against the excise
tax due therefrom: Provided, further, That lubricating oils and
greases produced from base stocks and additives on which the excise
tax has already been paid shall no longer be subject to excise tax:
Provided, finally, That locally produced or imported oils previously
taxed as such but are subsequently reprocessed, refined or recycled
shall likewise be subject to the tax imposed under this Section.

(b) Processed gas, per liter of volume capacity, [Eight pesos (P8.00)]
FIVE CENTAVOS (P0.05):

(c) Waxes and petrolatum, per
THREE PESOS AND FIFTY C

[Eight pesos (P8.00)]
5 (P3.50):

(4) On denatured alcohol to be used for motive power, per liter of
volume capacity, [Eight pesos (8.00)] FIVE CENTAVOS (P0.05)
Provided, That unless otherwise provided by special laws, if the
denatured alcohol is mixed with gasoline, the excise tax on which
has already been paid, only the alcohol content shall be subject to the


tax herein prescribed. For purposes of this Subsection. the removal
of denatured alcohol of not less than one hundred eighty degrees
(1800) proof (ninety percent (90%) absolute alcohol) shail be
deemed to have been removed for motive power, unless shown
otherwise,

(e) Naphtha, regular gasoline and other similar products of
distillation. per liter of volume capacity, [Eight pesos (P8.00)]
FOUR PESOS AND THIRTY CENTAVOS (P4.35): Provided,
however, That naphtha, and pyrolysis gasoline, when used as a raw
material in the production of petrochemical products, or in the
refining of petroleum products, or as replacement fuel for natural-
gas-fired-combined cycle power plant, in lieu of locally-extracted
natural gas during the non-availability thereof, subject to the rules
and regulations to be promulgated by THE SECRETARY OF
ENERGY, IN CONSULTATION WITH the Secretary of Finance,
per liter of volume capacity, zero (P0.00): Provided, further, That the
production of petroleum products of distillation and for use solely
for the production of gasoline shall be exempt from excise tax:
Provided, finally, That the by-product including fuel oil, diesel fuel,
kerosene, pyrolysis gasoline, liquefied petroleum gasses and similar
oils having more or less the same generating power, which are
produced in the processing of naphtha into petrochemical products
shall be subject to the applicable excise tax specified in this Section,
except when such by-products are transferred to any of the local oil
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;

[(1) Unleaded premium gasoline, per liter of volume capacity, Seven
pesos (P7.00):|

(F) LEADED PREMIUM GASOL! PER LITER OF
VOLUME CAPACITY, FIVE PESOS AND THIRTY-FIVE
CENTAVOS (P5.35); UNLEADED PREMIUM GASOLINE,
PER LITER OF VOLUME CAPACITY, FOUR PESOS AND
THIRTY-FIVE CENTAVOS (P4.35),

(g) Aviation turbo jet fuel, per liter of volume capacity, [Four pesos
(P4.00)] THREE PESOS AND SIXTY-SEVEN CENTAVOS
(P3.67);

(h) Kerosene, per liter of volume capacity, [Three pesos (P3.00)]
ZERO (P0.00): Provided, That kerosene. when used as aviation
fuel, shall be subject to the same tax on aviation turbo jet fuel under
the preceding paragraph (g), such tax to be assessed on the user
thereof:


(i) Diesel fuel oil, an on similar fuel oils having more or less the
same generating power. per liter of volume capacity. [Two pesos and
fifty centavos (P2.50)] ZERO (PO.00).

(j) Liquefied petroleum gas. per kilogram. [One peso (P1.00)]
ZERO (P0.00): Provided, That liquefied petroleum gas when used
as raw material in the production of petrochemical products. subject
to the rules and regulations to be promulgated by the Secretary of
Finance, shall be taxed zero (P0.00) per kilogram,

Provided. finally, That liquefied petroleum gas used for motive
power shall be taxed at the equivalent rate as the excise tax on diesel
fuel oil:

sphalts. per kilogram, [Eight pesos (P8.00)| FIFTY-SIX
\TAVOS (PO0.56): and

(1) Bunker fuel oil. and on similar fuel oils having more or less the
same generating power. per liter of volume capacity, [Two pesos and
fifty centavos (P2.50)| ZERO (P0.00):

(m) Petroleum coke. per metric ton, Two pesos and fifty centavos
(P2.50): Provided, however, That petroleum coke, when used as
feedstock to any power generating facility, per metric ton, zero
(P0.00).

[Effective January 1.2019

(a) Lubricating oils and greases. including but not limited to, base
stock for lube oils and greases. high vacuum distillates. aromatic
extracts, and other similar preparations, and additives for lubricating
oils and greases. whether such additives are petroleum based or not,
per liter and kilogram respectively, of volume capacity or weight.
Nine pesos (P9.00): Provided, however. That the excise taxes paid
on the purchased feedstock (bunker) used in the manufacture of
excisable articles and forming part thereof shall be credited against
the excise tax due therefrom: Provided, further. That lubricating oils
and greases produced from base stocks and additives on which the
excise tax has already been paid shall no longer be subject to excise
tax: Provided, finally, That locally produced or imported oils
previously taxed as such but are subsequently reprocessed, refined or
recycled shall likewise be subject to the tax imposed under this
Section

(b) Processed gas. per liter of volume capacity. Nine pesos (P9.00):

(c) Waxes and petrolatum, per kilogram, Nine pesos (P9.00);


(d) On denatured alcohol to be used for motive power, per liter of
volume capacity, Nine pesos (P9.00): Provided, That unless
otherwise provided by special laws, if the denatured alcohol is mixed
with gasoline, the excise tax on which has already been paid, only
the alcohol content shall be subject to the tax herein prescribed. For
purposes of this Subsection, the removal of denatured alcohol of not
less than one hundred cighty degrees (1800) proof (ninety percent
(90%) absolute alcohol) shall be deemed to have been removed for
motive power, unless shown otherwise,

(e) Naphtha, regular gasoline and other similar products of
distillation, per liter of volume capacity, Nine pesos (P9.00)

Provided, however, That naphtha, and pyrolysis gasoline, when used
as a raw material in the production of petrochemical products, or in
the refining of petroleum products, or as replacement fuel for
natural-gas-fired-combined cycle power plant. in lieu of locally-
extracted natural gas during the non-availability thereof. subject to
the rules and regulations to be promulgated by the Sccretary of
Finance, per liter of volume capacity, zero (P0.00): Provided,
further, That the production of petroleum products of distillation and
for use solely for the production of gasoline shall be exempt from
excise tax, Provided. finally. That the by-product including fuel oil

diesel fuel, kerosene, pyrolysis gasoline, liquefied petroleum gases
and similar oils having more or less the same generating power,
which are produced in the processing of naphtha into petrochemical
products shall be subject to the applicable excise tax specified in this
Section, except when such by-products are transferred to any of the
local oil 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;

(1) Unleaded premium gasoline, per liter of volume capacity, Nine
pesos (P9.00):

(g) Aviation turbo jet fuel, per liter of volume capacity, Four pesos
(P4.00).

(h) Kerosene. per liter of volume capacity. Four pesos (P4.00):
Provided, That kerosene, when used as aviation fuel, shall be subject
to the same tax on aviation turbo jet fuel under the preceding
paragraph (g), such tax to be assessed on the user thereof,

(i) Diesel fuel oil, an on similar fuel oils having more or less the
same generating power. per liter of volume capacity. Four pesos and
fifty centavos (P4.50).

(j) Liquefied petroleum gas, per kilogram, Two pesos (P2.00)
Provided, That liquefied petroleum gas when used as raw material in


the production of petrochemical products, subject to the rules and
regulations to be promulgated by the Secretary of Finance. shall be
taxed zero (P0.00) per kilogram: Provided. finally, That liquefied
petroleum gas used for motive power shall be taxed at the equivalent
rate as the excise tax on diesel fuel oil

(k) Asphalts, per kilogram, Nine pesos (P9.00):

(1) Bunker fuel oil, and on similar fuel oils having more or less the
same generating power. per liter of volume capacity, Four pesos and
fifty centavos (P4.50): and

(m) Petroleum coke, per metric ton. Four pesos and fifty centavos
(P4.50): Provided, however, That petroleum coke, when used as
feedstock to any power generating facility, per metric ton. zero
(P0.00).|

[Effective January 1, 2020

(a) Lubricating oils and greases, including but not limited to, base
stock for lube oils and greases. high vacuum distillates. aromatic
extracts, and other similar preparations, and additives for lubricating
oils and greases. whether such additives are petroleum based or not,
per liter and kilogram respectively, of volume capacity or weight,
Ten pesos (P10.00): Provided, however. That the excise taxes paid
on the purchased feedstock (bunker) used in the manufacture of
excisable articles and forming part thereof shall be credited against
the excise tax due therefrom: Provided. further, That lubricating oils
and greases produced from base stocks and additives on which the
excise tax has already been paid shall no longer be subject to excise
tax: Provided, finally. That locally produced or imported oils
previously taxed as such but are subsequently reprocessed, refined or
recycled shall likewise be subject to the tax imposed under this
Section.

(b) Processed gas. per liter of volume capacity. Ten pesos (P 10.00),
(c) Waxes and petrotatum, per kilogram, Ten pesos (10.00);

(d) On denatured alcohol to be used for motive power, per liter of
volume capacity, Ten pesos (P10.00): Provided, That unless
otherwise provided by special laws, if the denatured alcohol is mixed
with gasoline. the excise tax on which has already been paid, only
the alcohol content shall be subject to the tax herein prescribed. For
purposes of U ibsection, the removal of denatured alcohol of not
less than one hundred eighty degrees (1800) proof (ninety percent
(90%) absolute alcohol) shall be deemed to have been removed for
motive power. unless shown otherwise,



(ec) Naphtha, regular gasoline and other similar products of
distillation, per liter of volume capacity, Ten pesos (10.00):
Provided, however, That naphtha, and pyrolysis gasoline. when used
as a raw material in the production of petrochemical products, or in
the refining of petroleum products, or as replacement fuel for
natural-gas-fired-combined cycle power plant, in licu of locally-
extracted natural gas during the non-availability thereof, subject to
the rules and regulations to be promulgated by the Secretary of
per liter of volume capacity, zero (P0.00): Provided,
Phat the production of petroleum products of distillation and
for use solely for the production of gasoline shall be exempt from
excise tax; Provided. finally. That the by-product including fuel oil,
diesel fuel, kerosene, pyrolysis gasoline. liquefied petroleum gases
and similar oils having more or less the same generating power,
which are produced in the processing of naphtha into petrochemical
products shall be subject to the applicable excise tax specified in this
Section, except when such by-products are transferred to any of the
local oil 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:

(1) Unleaded premium gasoline, per liter of volume capacity, Ten
pesos (P10.00):

(2) Aviation turbo jet tuel, per liter of volume capacity, Four pesos
(P4.00):

(h) Kerosene, per liter of volume capacity, Five pesos (P5.00)
Provided, That kerosene. when used as aviation fuel, shall be subject
to the same tax on aviation turbo jet fuel under the preceding
paragraph (g), such tax to be assessed on the user thereof’

(i) Diesel fuel oil. an on similar fuel oils having more or less the
same generating power. per liter of volume capacity. Six pesos
(P6.00):

(j) Liquefied petroleum gas, per kilogram, Three pesos (P3.00)
Provided, That liquefied petroleum gas when used as raw material in
the production of petrochemical products, subject to the rules and
regulations to be promulgated by the Secretary of Finance. shall be
taxed zero (P0.00) per kilogram: Provided, finally, That liquefied
petroleum gas used for motive power shall be taxed at the equivalent
rate as the excise tax on diesel fuel oil;

(k) Asphalts, per kilogram, Ten pesos (P10.00).


() Bunker fuel oil, and on similar fuel oils having more or less the
same generating power. per liter of volume capacity, Six pesos
(P6.00); and
(m) Petroleum coke, per metric ton, Six pesos (P6.00): Provided,
however, That petroleum coke, when used as feedstock to any power
generating facility, per metric ton, zero (P0.00).]

SEC. 6. Section 47 of the same Act is hereby repealed

SEC. 7. Section 82 of the same Act is hereby repealed

SEC. 8. Repeating Clause. ~ All laws inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SEC. 9. Separability Clause. — if any of the sections or provisions of this Act is held
invalid, all the other provisions not affected thereby shall remain valid

SEC. 10. Effectivity Clause. — This Act shall take effect fifteen (15) days from the date
of its publication in at least two (2) newspapers of general circulation in the Philippines.

Approved,