EXCISE taxes on liquefied petroleum gas (LPG) and kerosene have again been suspended with the Bureau of Internal Revenue (BIR) implementing an order issued by Malacañang last week.
Revenue Memorandum Circular (RMC) 100-2026 followed the Sept. 25 issuance of Executive Order (EO) 125, which suspended excise taxes on LPG, except when it is used as raw material for the production of petrochemical products or for motive power.
The excise tax on kerosene was likewise suspended, except when it is used as aviation fuel.
The temporary tax suspension was implemented pursuant to Republic Act (RA) 12316, which amended Section 148 of the Tax Code and provided the legal basis for the temporary suspension of excise taxes on specific petroleum products.
The Department of Energy had certified that the one-month average Dubai crude oil price based on the Mean of Platts Singapore reached $99.41 per barrel from Aug. 13 to Sept. 11, exceeding the $80 per barrel threshold prescribed under RA 12316.
The suspension will be lifted if either of two conditions is met: Dubai crude falling below $80 per barrel, as certified by the DOE, or EO 125’s lapse after three months.
The DOE and the Department of Finance, through the BIR and the Bureau of Customs (BOC), have also been directed to conduct an inventory of existing LPG and kerosene stocks.
They are required to submit monthly information to the House of Representatives on the declared value and volume of petroleum products covered by EO 125.
The government previously suspended excise taxes on LPG and kerosene in April following a surge in global oil prices due to the war in the Middle East.
The suspension was lifted on July 8 after the DOE certified that Dubai crude prices had fallen below the $80 per barrel threshold.
FROM REPORTS BY NIÑA MYKA PAULINE ARCEO AND PNA
