CUSTOMS IMPLEMENTS TRAIN 2, SIN TAX LAW
On January 4, 2019, the Bureau of Customs released new excise tax rates as they implement the 2nd tranche of Train Law.
Bureau of Customs (BOC) tightens its grip on revenue collection as it implements the TRAIN Law tranche 2 and Sin Tax Law in the bureau's E2M System effective 4 January 2019.
Acting upon the instruction of Commissioner Rey Leonardo Guerrero, the head of BOC's Management Information System and Technology Group Jeffrey Ian Dy issued a memorandum to District Collectors and others concerned on the updated excise tax rates for the products under TRAIN Law and Sin Tax Law.
For Minerals and Mineral Products or all domestic and imported coal and coke, the excise tax rate is P100.
For Refined and manufactured mineral oils and motor fuels, the rate of P9 is applied to lubricating oils and greases including but not limited to base stock for lube oils and greases, high vacuum distillates, aromatic extracts and other similar preparations, and additives for lubricating oils and greases, whether such additives are petroleum-based or not, per liter and kilogram respectively, of volume capacity or weight – P8, P9, or P10.
Same rate of P9 is used for locally-produced or imported oils previously taxed but subsequently reprocessed, re-fined, recycled per liter and kilogram of volume capacity or weight; Processed gas per liter of volume capacity; Waxes and petroleum per kilogram; Denatured alcohol to be used for motive power, per liter of volume capacity; Asphalts, per kilogram. Additionally, the P9 rate is also used for Naptha, regular gasoline, pyrolisis gasoline and other similar products of distillation per liter of volume capacity; Unleaded premium gasoline, per liter of volume capacity.
Meanwhile, an excise tax of P4.50 is applied to Diesel fuel oil, and on similar fuel oils having more or less the same generating power, per liter of volume capacity; Liquefied petroleum gas used for motive power, per kilogram; Bunker fuel oil, and on similar oils having more or less the same generating power, per liter of volume capacity; and Petroleum coke, per metric ton.