---

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 314 October 20, 1973

INCREASING THE SPECIFIC TAX ON GASOLINE, LUBRICATING OIL AND AUTOMOTIVE DIESEL OIL BY AMENDING SECTIONS 142 AND 145 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED

WHEREAS, it is in line with the declared policy of the Government to accelerate the economic and social development of the country to provide for the construction and improvement of highways, roads, bridges and other infrastructures;

WHEREAS, the estimated amounts that are expected to accrue to the Highways Special Fund in the next fiscal years are grossly inadequate to pursue the current program of highway improvement and development;

WHEREAS, the tax on gasoline in the Philippines is one of the lowest in the world, as revealed in a comparative study of the gasoline tax in 15 countries/cities, as revealed by the following statistics (based on April, 1972 estimates):

The Cost of Gasoline in Several Countries/Cities

Showing the Tax Component and Product

Cost in Equivalent Centavos

Per Liter

Among Non-Asian Countries/Cities	Tax Element	Product Cost
Adelaide, Australia	24.5	43.4
Dallas, U.S.A.	15.5	42.7
Naples, Italy	123.6	34.3
New York, U.S.A.	18.9	51.3
New Zealand	34.0	38.1
Oslo, Norway	95.1	39.0
Rotterdam, Netherlands	82.1	36.0
United Kingdom	77.3	37.8
Vienna, Austria	54.9	33.5
Washington, D.C., U.S.A.	18.9	44.5
Among Asian Cities	Tax Element	Product Cost
Bangkok	27.8	31.8
Hong Kong	42.4	37.8
Kuala Lumpur	60.8	36.4
Singapore	60.8	35.0
Tokyo	51.9	43.9
Manila	8.0 (14 as proposed)	22.0

WHEREAS, the current gasoline price in Manila, as compared with those in progressive Asian cities, is also the lowest, as shown below:

Price, Equivalent Centavos per Liter

(as of October, 1973, except for Jakarta which is as of March 1973)

Cities	Premium	Regular
Calcutta, India	133.5	128.9
Hong Kong	117.8	107.5
Jakarta, Indonesia	64.8	57.3
Sabah, Malaysia	144.5	130.2
Saigon, Vietnam	142.8	115.6
Sarawak	122.0	107.7
Singapore	145.2	135.6
Tokyo, Japan	166.6	143.5
Manila	39.0	33.0

WHEREAS, the tax on automotive diesel is very low compared to the tax on gasoline and should be increased to make its tax nearer that on gasoline since automotive diesel is also used for motor purposes;

WHEREAS, the increase in tax on gasoline, lubricating oil and automotive diesel oil is consistent with present policy to conserve fuel;

NOW, THEREFORE, in order to effect the desired changes and reforms in the economic, social and political structure of our society, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief of the Armed Forces of the Philippines, and pursuant to the Proclamation 1081 dated September 21, 1972, and General Order No. 1 dated September 22, 1972, do hereby order and decree the following:

Section 1. Section 142 sub-paragraphs (b) and (c) and Section 145 of the National Internal Revenue Code, as amended, are hereby further amended to read as follows:

"Sec. 142. Specific tax on manufactured oils and fuels. On refined and manufactured mineral oil and motor fuels, there shall be collected the following taxes:

xxx xxx xxx

(b) Lubricating oils, per liter of volume capacity, TEN [seven] centavos;

(c) Naptha, gasoline and all other similar products of distillation, per liter of volume capacity, FOURTEEN [eight] centavos; and

xxx xxx xxx

"Sec. 145. Specific tax on diesel fuel oil. On fuel oil, commercially known as diesel fuel oil, and on similar fuel oils, having more or less the same generating power, WITH SPECIFIC GRAVITY OF .820 to .920 AT 60 DEGREES FAHRENHEIT, there shall be collected, [per metric ton, one peso], PER LITER, TWO CENTAVOS; PROVIDED THAT, ON DIESEL OIL USED FOR AUTOMOTIVE PURPOSES THE TAX SHALL BE SIX CENTAVOS PER LITER."

Section 2. This shall take effect immediately.

Done in the City of Manila, this 20th of October, in the year of Our Lord, nineteen hundred and seventy-three.

The Lawphil Project - Arellano Law Foundation

---