Bureau of Customs to oil firms: Pay correct taxes

January 15, 2019

Customs Commissioner Rey ‘Jagger’ Guerrero has reminded oil companies and other importers of oil-based products to pay the proper taxes and duties as it starts implementing the second stage of RA 10963 commonly known as the ‘TRAIN Law.’

Guerrero also instructed all of the bureau’s 17 collection districts “to be on guard against all forms of oil smuggling” and the entry of smuggled oil products.

Deputy Commissioner for Management Information and Technology Group (MISTG) Jeffrey Ian Dy, in a memorandum, said since January 4, the bureau’s electronic lodgement system (E2M) has already incorporated the new excise tax rates due to all oil products as well as those for tobacco and alcoholic products in line with the implementation of RA 10351 or the ‘Sin Tax Law.’

For Minerals and Mineral Products or all domestic and imported coal and coke, the excise tax rate has been adjusted to P100.

For Refined and manufactured mineral oils and motor fuels and additives for lubricating oils and greases, whether such additives are petroleum based or not, the rates would be P8.00, P9 or P10 per liter or kilogram, respectively, of the volume capacity or weight.

An excise tax of P9 per liter or kilo of volume capacity or weight shall be collected for locally produced or imported oils previously taxed but subsequently reprocessed, re-fined and recycled.

The rate also applies to processed gas, waxes, denatured alcohol be used for motive power, asphalt, naptha, unleaded gasoline, regular gasoline, pyrolisis gasoline and other similar products of distillation.