AN ACT AMENDING
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED,
AND FOR OTHER
PURPOSES
TITLE VI
EXCISE TAXES
ON CERTAIN GOODS
CHAPTER VII
EXCISE TAX
ON MINERAL PRODUCTS
SEC.
151. Mineral Products. -
(A) Rates of Tax.
-
There shall be levied, assessed and collected on minerals, mineral products
and quarry resources, excise tax as follows:
(1) On coal and coke,
a tax of Ten pesos (P10.00) per metric ton;
(2) On all nonmetallic
minerals and quarry resources, a tax of two percent (2%) based on
the actual market value of the gross output thereof at the time of removal,
in the case
of those locally extracted or produced; or the value used by the Bureau
of Customs in
determining tariff and customs duties, net of excise tax and value-added
tax, in the case
of importation.
Notwithstanding the
provision of paragraph (4) of Subsection (A) of Section 151, locally extracted
natural gas and liquefied natural gas shall be taxed at the rate of two
percent (2%);
(3) On all metallic
minerals, a tax based on the actual market value of the gross output thereof
at the time of removal, in the case of those locally extracted or produced;
or the value used
by the Bureau of Customs in determining tariff and customs duties, net
of excise tax and
value-added tax, in the case of importation, in accordance with the following
schedule:
(a) Copper and other
metallic minerals;
(i) On the first three
(3) years upon the effectivity of Republic Act No. 7729,
one percent (1%);
(ii) On the fourth
and the fifth years, one and a half percent (1 ½%); and
(iii) On the sixth
year and thereafter, two percent (2%);
(b) Gold and chromite,
two percent (2%).
(4) On indigenous petroleum,
a tax of three percent (3%) of the fair international market price
thereof, on the first taxable sale, barter, exchange or such similar transaction,
such tax
to be paid by the buyer or purchaser before removal from the place of production.
The
phrase "first taxable sale, barter, exchange or similar transaction"
means the transfer
of indigenous petroleum in its original state to a first taxable transferee.
The fair
international market price shall be determined in consultation with an
appropriate
government agency.
For the purpose of
this Subsection, "indigenous petroleum" shall include locally-extracted
mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral gas and all
other similar or naturally associated substances with the exception of
coal, peat, bituminous shale and/or stratified mineral deposits.
(B) For Purposes
of This Section, the Term:
(1) "Gross output"
shall be interpreted as the actual market value of minerals or mineral
products or of bullion from each mine or mineral land operated as a separate
entity, without any deduction from mining, milling, refining (including
all expenses incurred to prepare the said minerals or mineral products
in a marketable state), as well as transporting, handling, marketing or
any other expenses: Provided, That if the minerals or mineral products
are sold or consigned abroad by the lessee or owner of the mine under C.I.F.
terms, the actual cost of ocean freight and insurance shall be deducted:
Provided, however, That in the case of mineral concentrate, not
traded in commodity exchanges in the Philippines or abroad, such as copper
concentrate, the actual market value shall be the world price quotations
of the refined mineral products content thereof prevailing in the said
commodity exchanges, after deducting the smelting, refining and other charges
incurred in the process of converting the mineral concentrates into refined
metal traded in those commodity exchanges.
(2) "Minerals"
shall mean all naturally occurring inorganic substances (found in nature)
whether in solid, liquid, gaseous or any intermediate state.
(3) "Mineral products"
shall mean things produced and prepared in a marketable state by simple
treatment processes such as washing or drying, but without undergoing any
chemical change or process or manufacturing by the lessee, concessionaire
or owner of mineral lands.
(4) "Quarry resources"
shall mean any common stone or other common mineral substances as the Director
of the Bureau of Mines and Geo-Sciences may declare to be quarry resources
such as, but not restricted to, marl, marble, granite, volcanic cinders,
basalt, tuff and rock phosphate: Provided, That they contain no
metal or other valuable minerals in economically workable quantities.
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