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Executive Order No. 312 (1987)
WHEREAS, Executive No. 311 dated December 10, 1987 reduced the tax on indigenous petroleum from Twenty-Two Percent (22%) to Fifteen Percent (15%) as a consequence of the reduction of the duty rate on imported crude oil under Executive Order No. 303 dated August 25, 1987;
Sec. 1. The rate of excise tax imposed on indigenous petroleum as provided for under Section 129, (as renumbered to Section 151 (a) (4) under Executive Order No. 273), of the National Internal Revenue Code, as amended, is hereby reduced from fifteen percent (15%) to ten percent (10%) 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 Commissioner of Internal Revenue is hereby authorized to promulgate such rules and regulations, guidelines or issuances 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and other issuances or parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.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 16th day of December in the year of Our Lord, nineteen hundred and eighty-seven.