 What is the excise tax on petroleum products?

 What is the excise tax on minerals?

 What is the excise tax on miscellaneous articles?

EXCISE TAX ON PETROLEUM PRODUCTS

  EFFECTIVITY (RA 10963-TRAIN Law)

PRODUCT TYPE January 1, January 1, January 1, 2020

2018 2019

(a) Lubricating oils and greases, including but   Php9.00 Php10.00

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  

(a.1) Locally produced or imported oils previously  

taxed but are subsequently reprocessed, re-refined or
recycled, per liter and kilogram of volume capacity  
or weight.
Php8.00
(b)Processed gas, per liter of volume capacity
 
(c)Waxes and petrolatum, per kilogram

(d)Denatured alcohol to be used for motive

power , per liter of volume capacity

(e)Asphalt, per kilogram

(f)Naphtha, regular gasoline, pyrolysis    Php9.00   Php10.00 

gasoline and other similar products of
distillation, per liter of volume capacity  

Php7.00
(g)Unleaded premium gasoline, per liter of
volume capacity  

(h)Kerosene, per liter of volume capacity  Php3.00  Php4.00  Php5.00

(i)Aviation turbo jet fuel,aviation gas, per liter Php4.00     Php4.00   Php4.00
of volume capacity

(j)Kerosene when used as aviation fuel, per

liter of volume capacity

(k)Diesel fuel oil, and on similar fuel oils     Php4.50    Php6.00 

having more or less the same generating
power, per liter of volume capacity  

 
(l)Liquified petroleum gas used for motive
power, per kilogram  
(m)Bunker fuel oil, and on similar oils having Php2.50
more or less the same generating power, per
 liter of volume capacity

(n)Petroleum coke, per metric ton  

(o)Liquified petroleum gas, per kilogram Php1.00  Php2.00  Php3.00

(p)Naphtha and pyrolysis gasoline, when used      Php0.00    Php0.00

as 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 lacally-extracted natural gas during  
the non-availability thereof, per liter of volume
capacity  Php0.00

(q)Liquified petroleum gas, when used as raw  

material in the production of petrochemical
products, per kilogram

(r)Petroleum coke when used as feedstock to

any power generating facility, per metric ton

Petroleum product to be used as raw materials 

roducts
materials
acture of
oleum NOT TAXABLE
s fuel for
ants

a. Naphtha and pyrolysis gasoline used as raw materials

in the manufacture of petrochemicals or as replacement
fuels for power plants.
b. Liquefied petroleum gas used in the production of
petrochemicals.
c. Petroleum coke used as feed stocks to power
generation facilities.
Bioethanol products to be subject to the excise tax
Creditable excise tax
herein must be denatured before the release thereof
 The excise taxfrom
paid onCustoms
the purchaseinof the
basestock
case(bunker) in the manufacture
of importation of excisable articles
or before
and formingremoval
part thereof from
shall bethe
credited
placeagainst
of the excise tax dueifthereon.
production domestically
produced.
  Any excess of excise tax paid on raw materials resulting from manufacturing, blending,
processing, storage and handling losses shall not give rice to a tax refund or credit.

Used in production or Used as replacement us for

processing of products power plants
subject to excise tax
Naphtha, gasoline and other Exempt Exempt
similar products
Liquefied petroleum gas Exempt Exempt
Petroleum coke - Exempt
Bunker fuel Taxable but creditable -

Mandatory marking of all petroleum products

Random field tests will be periodically

conducted in the warehouses storage tank
gas station and other retail outlets to
inspect the quality and quantity of fuel to
check incidence of human trafficking.

A confirmatory test will be rendered on

tested unmarked adult third or diluted fuel
to validate the findings of the field test

Sale of petroleum Products to exempt entities

1. 2. 3.
International carriers Entities exempted under tax Entities which are exempt
treaties, conditional on from direct and indirect
reciprocal tax exemption tax.
treatment.
EXCISE TAX ON MINERAL AND MINERAL PRODUCTS

PRODUCT TYPE TAX RATES (RA 10963-TRAIN Law)

Coal and coke (Domestic and Imported) January 1, 2018 - Php50.00

January 1, 2019 - Php100.00

January 1, 2020 - Php150.00

   and onwards

Nonmetallic Minerals and Quarry Resources (Locally extracted Four percent (4%) based on the actual market value of the gross
or produced)  output thereof at the time of removal

Nonmetallic Minerals and Quarry Resources (Imported) Four percent (4%) based on the value used by the Bureau of Customs
(BOC) in determining tariff and customs duties, net of excise tax and
value-added tax

Locally-extracted natural gas and liquefied natural gas Exempt

All Metallic Minerals (locally extracted or produced copper, Four percent (4%) based on the actual market value of the gross
gold, chromite and other metallic minerals) output thereof at the time of removal

Imported copper, gold, chromite and other metallic minerals Four percent (4%) based on the value used by BOC in determining
tariff and customs duties, net of excise tax and value added tax

On indigenous petroleum Six percent (6%) of the fair international market price thereof, on the
first taxable sale, barter, exchange or such similar transaction, such
tax to be paid by the buyer or purchaser before removal from the
place of production. The phrase “first taxable sales, barter, exchange
or similar transaction’' means the transfer of indigenous petroleum in
its original, state to a first taxable transferee. The fair international
market price shall be determined in consultation with appropriate
government agency.

          For the purpose of this Subsection, “indigenous petroleum”

shall include locally-extracted mineral oil, hydrocarbon gas, bitumen,
crude asphalt. Mineral gas and all other similar or naturally associated
substances with the exception of coal, peat, bituminous shale and/or
stratified mineral deposits."

NOTE:

In the case of mineral concentrates not traded in commodity exchanges in the Philippines or abroad, such as copper concentrate, the
actual market value shall be the world price quotations of the refined mineral products content thereof prevailing in the said
commodity exchanges, after deducting the smelting, refining and other charges incurred in the process of converting the mineral
concentrates into refined metal traded in those commodity exchanges.

On minerals and mineral products sold or consigned abroad, the actual cost of ocean freight and insurance shall be deducted from the
tax base.

 
 I n d ig e n o u s p e tr o le u m s h a ll in c lu d e lo c a lly e x tra c te d m in e ra l o il,
h y d r o c a r b o n g a s , b itu m e n , c r u d e a s p h a lt, m in e ra l g a s a n d a ll o th e r s im ila r
o r n a tu ra lly a s s o c ia te d s u b s ta n c e s w ith th e e x c e p tio n o f c o a l p e a t
b itu m in o u s s h a le a n d o r s tra tifie d m in e ra l d e p o s its .

M in e r a ls m e a n a ll n a tu ra lly o c c u rrin g in o rg a n ic s u b s ta n c e s
fo u n d in n a tu r e w e a th e r in s o lid liq u id g a s e o u s o r a n y
in te rm e d ia te s ta te .

M in e r a l p r o d u c ts m e a n th in g s p ro d u c e d a n d p r e p a r e d in a
m a rk e ta b le s ta te b y s im p le tre a tm e n t p ro c e s s e s s u c h a s
w a s h in g o r d ry in g , b u t w ith o u t u n d e rg o in g a n y c h e m ic a l
c h a n g e o r p ro c e s s o r m a n u fa c tu rin g b y th e le s s e e ,
c o n c e s s io n a ire o r o w n e r o f m in e ra l la n d .

Q u a r r y r e s o u r c e s s h a ll m e a n a n y c o m m e n ts to n e r o th e r
c o m m o n m in e r a l s u b s ta n c e s a s th e d ir e c to r o f th e B u r e a u o f
M in e s a n d G e o s c ie n c e m a y d e c la re to b e q u a rry re s o u rc e s s u c h
a s b u t n o t r e s tric te d to m a l, m a r b le g r a n ite v o lc a n ic c in d e rs
b a s e s a lt to u g h a n d r o c k p h o s p h a te .

C o k e is a f u e l w ith h ig h c a r b o n c o n te n t d e r iv e d f r o m th e a n a e ro b ic
d is tilla tio n o f c o a l o r o il. m a y a ls o b e fo rm e d b y n a tu ra l g e o lo g ic
p ro c e s s e s it is u s e d in ir o n s m e ltin g o r f u e l in s to v e s a n d f o r g e s .

Ad valorem tax on mineral products

EXCISE TAX ON METALLIC AND NON- EXCISE TAX ON INDIGENOUS

METALLIC MINERALS PETROLEUM
 is based on the actual market value of the based on the fair international market price
gross output upon removal. If imported, it is on the first taxable sale, barter or exchange of
based on value used by the BOC in such similar transaction or the transfer of
determining tariff and customs duties, net of indigenous petroleum in its original state to a
excise tax and VAT. first taxable transferee.

RA 11256 exempt registered

small scale miners and
accredited traders who are
selling call to the Bangko
Sentral ng Pillipinas (BSP)
Small scale miners
from paying income tax and
excise tax.

EXCISE TAX ON MISCELLANEOUS ARTICLES

Automobile refers to any four or more

build motor vehicle regardless of
seating capacity which is propelled by
gasoline, diesel, electricity, or other
motive power.
 NET MANUFACTURER'S PRICE/IMPORTER'S SELLING PRICE TAX RATES (RA 10963 (TRAIN
Law)

OVER UP TO RATE

0 Php600,000 4%

Php600,000 Php1,000,000 10%

Php1,100,000 Php4,000,000 20%

Php4,000,000 over 50%

Exception to the excise tax rates

Hybrid vehicles shall be
subject to 50% of the
NET MANUFACTURER'S OR IMPORTER'S SELLING PRICE
applicable excise tax.
This refers to the price, net of excise tax and VAT at which locally manufactured/assembled or imported
automobiles are offered for sale to dealers, or the public directly or through their sales agents, as reflected in the
manufacturer's or importer's sworn declaration or in their sales invoice, whichever is higher.
Purely electric vehicles
and shall be exempt on
excise tax on automobiles.

MINIMUM PRICES
The net manufacturer's or importer's selling price shall include the value of air conditioning unit, radio and mag
Pick-ups
wheels including the installation cost thereof whether or not the same is actually installed in the automobile.
The net manufacturer's selling price shall not be less than: 1. 80% x (Suggested retail price - excise tax - VAT); and 2.
110% x (Cost of manufacture or import + selling expenses)
The suggested retail price shall not be less than the actual selling price of the automobile when sold in the market.

Hybrid vehicle means a motor vehicle

IMPORTED VEHICLE NOT FOR SALE
powered by electric energy, with or
Imported vehicles not for sale shall bewithout
subject to provision
the excise taxfor
on the total landedinvalue,
charging,
including transaction value, customs duty and all other charges.
combination with gasoline, diesel, or any
other motive power.

TECHNICAL IMPORTATION
Automobiles imported by exempt persons such as ecozone locators, the same is not
subject to excise tax. When the same is subsequently sold to taxable persons, the same
shall be subject to excise tax at the higher of the consideration paid and the depreciated
cost.
A 10% depreciation expense shall be provided but not in excess of 50% of the original
cost or value.