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Executive Order No. 311 (1987)
WHEREAS, under Section 129 (as renumbered to Section 151 (a) (4) under Executive Order No. 273), of the National Internal Revenue Code, as amended, indigenous petroleum is subject to excise tax equivalent to twenty-two percent (22%) of the fair international market price thereof;
Sec. 1. The rate of excise tax imposed on indigenous petroleum as provided for under Section 129 (as renumbered to Section 151 (a) (14) under Executive Order No. 273), of the National Internal Revenue Code, as amended, is hereby reduced from twenty-two percent (22%) to fifteen percent (15%) of the fair international market price thereof.
Sec. 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.
Sec. 3. The Commission of Internal Revenue is hereby authorized to promulgate such rules and regulations, guidelines or issuance necessary to ensure effective implementation of the provisions of this Order.
Sec. 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and other issuances or parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.
Sec. 5. This Executive Order shall take effect immediately.
DONE in the City of Manila, this 10th day of December in the year of Our Lord, nineteen hundred and eighty-seven.