Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS:
First Regular Session

House Bio. 495

Introduced by Representative Stella Luz A. Quimbo

AN ACT
AMENDING SECTION 148 AND ADDING SECTIONS 148-B, 148-C, AND 148-D IN
THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED

EXPLANATORY NOTE

On July 2017, the President signed Republic Act No. 10963, otherwise known as the Tax
Reform Acceleration and Inclusion (TRAIN) Law. The law was the first package of the
Comprehensive Tax Reform Program (CTRP), which is one of the key programs of the
previous administration. The TRAIN Law aims to rational the internal revenue tax system
to make it more progressive and conducive to sustainable and inclusive economic growth.
It accomplishes this primarily through the reduction of personal income taxes for majority
of taxpayers.

One of the features of TRAIN Law involved the gradual increase of excise tax rates on oil
products from 2018 to 2020. These include products such as processed gas, unleaded
premium gas, kerosene, diesel fuel, and LPG.

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beginning of 2020, the global price of oil was USD53.07 per barrel, and local prices
of gasoline, kerosene, and diesel were at P47.20, P39.91, and P37.15, respectively
By the start of 2022, these prices would rise drastically. The price of oil in the global
market was at USD78.43 per barrel, while the local prices of gasoline, kerosene, and
diesel have risen to P65.30, P53.03, and P49.40

The increase in oil prices have been further exacerbated by the ongoing conflict
between Russia and Ukraine. As the 3 largest producer of oil in the world, the
sanctions placed on Russia's oil exports have significantly limited the global oil
supply. Consequently, as of June 18, 2022, global prices were at a staggering
USD115.71 per barrel, while local prices of gasoline, kerosene, and diesel were at
P85.00, P88.48, and P87.30, respectively.

The country has been reeling from the effects of these continued increases in oil
prices. Bangko Sentral ng Pilipinas revised its inflation estimate to 5 percent, which
is higher than its earlier forecast of 4.6 percent. In a House Fuel Crisis Ad Hoc
Committee hearing earlier in the year, NEDA also staied that the increase of oil
prices in the country will lead to a 0.3-0.9 percentage point decrease in GDP, which
is equivalent to about P330 billion. Transport workers are experiencing the brunt of
the fuel price increases, and have been signifying intentions to hold transport strikes
throughout the country.

itis essential that the government response to this fuel crisis is immediate, sufficient,
and non-inflationary. The bill aims to achieve this by temporarily reducing or
suspending the collection excise taxes on selected petroleum products, namely,
diesel, LPG, and kerosene. The proposal provides immediate relief to all income
groups, with bigger relief for lower income classes. The bill also mandates a price
USD65 per barrel based on the Dubai MOPS pricing as a threshold global prices
must go down to before excise tax on oil revert to their original rates

This bill was deliberated upon and approved by the House Committee on Ways and
Means of the 18 Congress. In view of the foregoing, the passage of this bill is
earnestly sought

STELLA LUZ A. QUIMBO, PhD
Representative
Second District, Marikina City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

House ito. 495.

Introduced by Representative Stella Luz A. Quimbo

AN ACT

AMENDING SECTION 148 AND ADDING SECTIONS 148-B, 148-C, AND 148-D IN
THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED

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

SECTION 1. Section 148 of the National Internal Revenue Code, as amended, is
hereby further amended to read as follows:

“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, basestock 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): Provided, That lubricating oils and greases
produced from basestocks and additives on which the excise tax has already been
paid shall no longer be subject to excise tax: Provided, further, That locally
produced or imported oils previously taxed as such but are subsequently
reprocessed, re-refined or recycled shall likewise be subject to the tax imposed
under this Section


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(b) Processed gas, per liter of volume capacity, Eight pesos (P8.00)
(c) Waxes and petrolatum, per kilogram, Eight pesos (P8.00);

(d) On denatured alcohol to be used for motive power, per liter of volume capacity,
Eight pesos (8.00): 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 eighty degrees (180+) proof (ninety percent (90%) absolute alcohol)
shall be deemed to have been removed for motive power, unless shown otherwise;

(e) Naphtha, regular gasoline, pyrolysis gasoline and other similar products of
distillation, per liter of volume capacity, Seven pesos (P7.00): Provided, however,
That naphtha and pyrolysis gasoline, when used as a raw material in the
reproduction of petrochemical products or in 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 Finance, per liter of volume
capacity, zero (P0.00): Provided, further, That the production of petroleum
products, whether or not they are classified as products of distillation and for use
solely for the production of gasoline shail 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;

(f) Unleaded premium gasoline, per liter of volume capacity, Seven pesos (P7.00)

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

(h) Kerosene, per liter of volume capacity, Three pesos (P3.00): 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, 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)


() Liquefied petroleum gas, per kilogram, One peso (P1.00): 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, Eight pesos (P8.00)

(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):
Provided, however, That the excise taxes paid on the purchased barestock
(bunker) used in the manufacture of excisable articles and forming part thereof
shall be credited against the excise tax due therefrom; and

(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, basestock 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, That lubricating oils and greases
produced from basestocks and additives on which the excise tax has already been
paid shall no longer be subject to excise tax: Provided, further, That locally
produced or imported oils previously taxed as such but are subsequently
reprocessed, re-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 (9.00): 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


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hundred eighty degrees (180+) proof (ninety percent (90%) absolute alcohol) shalt
be deemed to have been removed for motive power, unless shown otherwise;

(e) Naphtha, regular gasoline, pyrolysis 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
reproduction of petrochemical products or in 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 Finance, per liter of volume
capacity, zero (P0.00): Provided, further, That the production of petroleum
products, whether or not they are classified as 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;

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

(g) Aviation turbo jet fuel, aviation gas, 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, 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):

(i) 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):
Provided, however, That the excise taxes paid on the purchased barestock
(bunker) used in the manufacture of excisable articles and forming part thereof
shall be credited against the excise tax due therefrom; 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, basestock 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 (P1000): Provided, That lubricating oils and greases
produced from basestocks and additives on which the excise tax has already been
paid shall no longer be subject to excise tax: Provided, further, That locally
produced or imported oils previously taxed as such but are subsequently
reprocessed, re-refined or recycled shall likewise be subject to the tax imposed
under this Section.

“(b) xxx
“(C)KxXx
“(d) xxx

“(e) Naphtha, [regular] gasoline, WITH NINETY-ONE (91) RESEARCH OCTANE
NUMBER (RON) AND BELOW, pyrolysis gasoline and other similar products of
distillation, per liter of volume capacity, Ten pesos (P10.00): PROVIDED, THAT
FOR THE PERIOD OF SIX (6) MONTHS AFTER THE EFFECTIVITY OF THIS
ACT, THE EXCISE TAX ON GASOLINE WITH NINETY-ONE (91) RON AND
BELOW SHALL BE FOUR PESOS AND THIRTY FIVE CENTAVOS (P4.35):
PROVIDED, FURTHER, THAT THIS RATE SHALL REVERT TO TEN PESOS
(P10.00) WHEN THE AVERAGE DUBAI CRUDE OIL BASED ON MEAN OF
PLATTS SINGAPORE (MOPS) FOR FOUR (4) SUCCESSIVE WEEKS
DECLINES TO SIXTY-FIVE DOLLARS (USD65) OR LOWER; Provided,
however, That naphtha and pyrolysis gasoline, when used as a raw material in the
reproduction of petrochemical products or in refining of petroleum products, or as
replacement fuel for natural-gas-fired-combined cycle power plant in lieu of locally-

7


extracted natural gas during the non-availability thereof, subject to the rules and
regulations to be promulgated by the Secretary of Finance, per liter of volume
capacity, zero PESOS (P0.00): Provided, [further|FURTHERMORE, That the
production of petroleum products, whether or not they are classified as 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, diese! 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;

“() (Unleaded premium gasoline] GASOLINE WITH OCTANE NUBER ABOVE
NINETY-ONE (91) RON, per liter of volume capacity, Ten pesos (P10.00)
PROVIDED, THAT FOR THE PERIOD OF SIX (6) MONTHS AFTER THE
EFFECTIVITY OF THIS ACT, THE EXCISE TAX UNDER THIS PARAGRAPH
SHALL BE SEVEN PESOS (P7.00): PROVIDED, FURTHER, THAT THIS RATE
SHALL REVERT TO TEN PESOS (P10.00) WHEN THE AVERAGE DUBAI
CRUDE OIL BASED ON MEAN OF PLATTS SINGAPORE (MOPS) FOR FOUR
(4) SUCCESSIVE WEEKS DECLINES TO SIXTY-FIVE DOLLARS (USD 65) OR
LOWER;

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

“(h) Kerosene, per liter of volume capacity, Five pesos (P5.00): PROVIDED, THAT
FOR THE PERIOD OF SIX (6) MONTHS AFTER THE EFFECTIVITY OF THIS
ACT, THE EXCISE TAX UNDER THIS PARAGRAPH SHALL BE ZERO PESOS
(P0.00): Provided, FURTHER, 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; PROVIDED, FINALLY, THAT
THE RATE OF TAX UNDER THIS PARAGRAPH SHALL REVERT TO FIVE
PESOS (P5.00) WHEN THE AVERAGE DUBAI CRUDE OIL PRICE BASED ON
MOPS FOR FOUR (4) SUCCESSIVE WEEKS DECLINES TO SIXTY-FIVE
DOLLARS (USD 65) OR LOWER.

“(i) Diesel fuel oil, and on similar fuel oils having more or less the same generating
power, per liter of volume capacity, Six pesos (P6.00): PROVIDED, THAT FOR
THE PERIOD OF SIX (6) MONTHS AFTER THE EFFECTIVITY OF THIS ACT,
THE EXCISE TAX UNDER THIS PARAGRAPH SHALL BE ZERO PESOS
(P0.00); PROVIDED, FURTHER, THAT THE RATE OF TAX UNDER THIS

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PARAGRAPH SHALL REVERT TO SIX PESOS (P6.00) WHEN THE AVERAGE
DUBAI CRUDE OIL PRICE BASED ON MOPS FOR FOUR SUCCESSIVE
WEEKS DECLINES TO SIXTY-FIVE DOLLARS (USD 65) OR LOWER.

“() Liquefied petroleum gas, per kilogram, Three pesos (P3.00): PROVIDED,
THAT FOR THE PERIOD OF SIX (6) MONTHS AFTER THE EFFECTIVITY OF
THIS ACT, THE EXCISE TAX UNDER THIS PARAGRAPH SHALL BE ZERO
PESOS (P0.00); PROVIDED, FURTHER, THAT THIS RATE SHALL REVERT TO
THREE PESOS (P3.00) WHEN THE AVERAGE LIQUEFIED PETROLEUM GAS
PRICE PRICE BASED ON SAUD! ARAMCO’S CONTRACT PRICE FOR TWO
(2) SUCCESSIVE MONTHS DECLINES TO FIVE HUNDRED EIGHTY DOLLARS
(USD 580) PER METRIC TON OR LOWER: 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) xxx
“xxx
“(m) xxx

“Petroleum products, including naptha, LPG, petroleum coke, refinery fuel
and other products of distillation, when used as input, feedstock or as raw material
in the manufacturing 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 Finance, per liter
of volume capacity, zero PESO (P0.00): Provided, That the by-product including
fuel oil, diesel fuel, kerosene, pyrolysis, gasoline, liquefied petroleum gases, and
similar oils having more or les the same generating power; which are produced in
the processing of naptha 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.

“[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
(USD 80) per barrel}


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“[Provided, That the Department of Finance] THE DEVELOPMENT BUDGET
COORDINATION COMMITTEE (DBCC) shall perform an annual review of the
implementation of the excise tax on fuel and shall, based on projections AND
ASSESSMENT OF [provided and recommendations of the Development Budget
Coordination Committee, as reconciled from] the conditions as provided above,
recommend TO THE PRESIDENT the [implementation or] suspension OR
REDUCTION of the excise tax [on fuel] UNDER THIS SECTION: 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. ]

SEC. 2. A new section designated as Section 148-B of the National Internal

Revenue Code of 1997, as amended, is hereby added, to read as follows:

“SEC. 148-B. PRICE MONITORING - OIL COMPANIES SHALL NOTIFY THE
DEPARTMENT OF ENERGY (DOE) AND THE DEPARTMENT OF FINANCE
(DOF) OF THE RETAIL PRICES, INCLUDING TAXES, OF GASOLINE,
KEROSENE, DIESEL FUEL OIL, LPG, AND SIMILAR FUEL OILS HAVING
MORE OR LESS THE SAME GENERATING POWER A DAY BEFORE THE
IMPLEMENTATION OF THE SIX-MONTH EXCISE TAX RATE ADJUSTMENT,
AND OF EVERY CHANGE IN THE RETAIL PRICE UNTIL THE END OF THE
SAID SIX-MONTH PERIOD, STATING IN EACH NOTIFICATION THE
JUSTIFICATION FOR SUCH CHANGES. THE DOE AND THE DOF SHALL
JOINTLY ISSUE GUIDELINES PROVIDING A REPORTING MECHANISM FOR
THIS PURPOSE.

THE DOE AND DOF SHALL FURNISH DATA SUBMITTED UNDER THIS.
SECTION TO THE DOE-DOJ TASK FORCE CREATED UNDER SECTION 14(D)
OF REPUBLIC ACT NO. 8479, OTHERWISE KNOWN AS THE DOWNSTREAM
OIL INDUSTRY DEREGULATION ACT OF 1998, FOR APPROPRIATE
ACTION.

SEC. 3. A new section designated as Section 148-C of the National Internal

Revenue Code of 1997, as amended, is hereby added, to read as follows:

SEC. 148-C, SOCIAL IMPACT STABILIZATION FUND. - NOTWITHSTANDING
THE EXCISE TAX IMPOSED UNDER SECTION 148 (E), (F), AND (I) OF THIS
ACT, AN ADDITIONAL EXCISE TAX OF TWO PESOS (P2.00) PER LITER OF
VOLUME SHALL BE COLLECTED ON GASOLINE, DIESELFUEL OIL, AND ON
SIMILAR FUEL OILS HAVING MORE OR LESS THE SAME GENERATING
POWER, WHEN THE AVERAGE DUBAI CRUDE OIL PRICES BASED ON
MOPS FOR THREE (3) SUCCESSIVE MONTHS DECLINES TO FORTY-FIVE
DOLLARS (USD 45) OR LOWER. THE REVENUE COLLECTED FROM THE
ADDITIONAL EXCISE TAX SHALL CONSTITUTE THE SOCIAL IMPACT

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STABILIZATION FUND WHICH SHALL BE UTILIZED BY THE DEPARTMENT
OF SOCIAL WELFARE AND DEVELOPMENT (DSWD) FOR DISTRIBUTIING
CASH AID TO AFFECTED LAND PUBLIC TRANSPORT ENTITIES SUCH AS
THE OPERATORS OF PUBLIC UTILITY VEHICLES, TAXIS, TRANSPRT
NETWORK VEHICLE SERVICES, AND TRICYCLES, DURING THE PERIODS
OF HIGH PETROLEUM PRICES: PROVIDED, THAT THE DSWD AND THE
DEPARTMENT OF TRANSPORTATION SHALL JOINTLY PREPARE THE
IMPLEMENTING RULES AND REGULATIONS FOR THE ADMINISTRATION
OF THE SOCIAL IMPACT STBILIZATION FUND.

SEC. 4. Implementing Rules and Regulations. — Within thirty (30) days from the
effectivity of this Act, the Secretary of Finance shall, upon the recommendation of the
Commissioner of Internal Revenue, promulgate the necessary rules and regulations for
its effective implementation

SEC. 5. Separability Clause. — If any of the sections or provisions of this Act is held
invalid, all the other provisions not affected thereby shall remain in full force and effect.

SEC. 6. Repealing Clause - The provisions of the National Internal Revenue Code
of 1997, as amended, shall continue to have full force and effect, except insofar as they
are inconsistent with this Act.

SEC. 7. Effectivity. —This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,

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