TAXES UNDER SPECIAL LAWS

Module 4
Prepared by: Mrs. Nelia I. Tomas, CPA, LPT

Special Topics in Taxation

LEARNING OBJECTIVES

After completing the lesson, the students must be able to comprehend and
demonstrate mastery of the following:
 Concept and nature of motor vehicle users
charge.
 Application of travel tax
 Scope of travel tax
 Manner of payment, collection and remittance travel tax.
 Concept of head tax
 Application of tax on forest products
 Nature of energy tax
MOTOR VEHICLE USER’S CHARGE
The road tax or motor vehicle users charge (MVUC) or Package 1C of the Comprehensive
Tax Reform Program was introduced to provide adequate funding for the maintenance of
national and provincial roads. It also aims to address air pollution from motor vehicles.

An MVUC rate that reflects current prices is simple to implement and provides sufficient
funds for the infrastructure programs of the government. The proposed merger of various
road funds with the general fund will result in more efficient linkages with the national
budget, and improve transparency and accountability. The proposed abolition of the Road
Board will also ensure more transparency in the utilization of the funds from MVUC and
consistency with national priorities.

The current rates were set in 2004 and have not been adjusted for inflation in the past 14
years, thereby eroding the real value of revenues. These are also complex with multiple
rates depending on the type of motor vehicle.
MOTOR VEHICLE USER’S CHARGE
Department of Finance (DOF) PROPOSAL
  The proposed merger of various road funds with the general fund will result in more
efficient linkages with the national budget, and improve transparency and
accountability.
 The proposed abolition of the Road Board will ensure more transparency in the
utilization of the funds from MVUC and consistency with national priorities.
 The revenues from the proposed increase of MVUC rates will be one of the sources
of funding that will finance road infrastructure projects of the government.
After consultation with different stakeholders, the DOF proposes to increase the MVUC
rates with the following features:
1. Impose a unitary rate based on weight for all vehicles, private or government and for
hire vehicles.
2.
Adopt a MVUC rates (pesos per kg. of GVW)
Type of vehicle
Year 1 Year 2 Year 3
Private and government motor vehicles, including motorcycles 1.40 1.95 2.50
longer phased-year period of 3 years to increase MVUC rates.
*as of March 2020, House Bill No. 6136 which seeks to begin imposing a hike on the motor vehicle user's charge (MVUC) or road users' tax
rates starting 2020 was approved by lawmakers on the 3rd and final reading.

MOTOR VEHICLE USER’S CHARGE

Each application for registration of motor vehicles shall be accompanied by an annual
Motor
Vehicle User’s Charge (MVUC) pursuant to Republic Act (RA) No. 8794 (“An Act Imposing
a Motor Vehicle User’s Charge on Owners of All Types of Motor Vehicles and For Other
Purposes”, approved on June 27, 2000).
GVW or Gross Vehicle Weight -the maximum operating weight/mass of a vehicle as
specified by the manufacturer. It includes vehicle's chassis, body, engine, engine fluids,
fuel, accessories, driver, passengers and cargo but excluding that of any trailers.
For private passenger cars registered as of July 16, 2000, the following amounts must be
paid by the owners of the following vehicles:
Categories Rates in Pesos (Applicable as of 2004)
1 . Private Vehicles
Passenger Cars
Light [Gross Vehicle Weight (GVW) up to 1600 kg]
- Current up to 5 yrs old 2,000
- Over 5 yrs old 1,400
Medium (GVW 1601 - 2300 kg )
- Current up to 3 yrs old 6,000
- Over 3 yrs and up to 5 yrs old 4,800
- Over 5 yrs old 2,400
MOTOR VEHICLE USER’S CHARGE
Categories Rates in Pesos (Applicable as of 2004)
1. Private Vehicle
Passenger Cars
Heavy (GVW > 2,300 kg)
- Current up to 5 yrs old 12,000
- Over 5 yrs old 5,600
2. Private and Government Vehicles
Passenger Cars
Light (GVW up to 1,600 kg) 1,600
Medium (GVW > 1,601 -2,300 kg ) 3,600
Heavy (GVW > 2,300 kg) 8,000

Utility Vehicles
GVW up to 2,700 kg 2,000
GVW > 2,700 to 4,500 kg 2,000 + 0.40 x GVW in excess of 2,700 kg

Sports Utility Vehicles

GVW up to 2,700 kg 2,300
GVW > 2,700 to 4,500 kg 2,300 + 0.46 x GVW in excess of 2,700 kg
MOTOR VEHICLE USER’S CHARGE
Categories Rates in Pesos (Applicable as of 2004)
2. Private and Government Vehicles
Motorcycles
 240
300

1,800 + 0.24 x GVW in excess of 2,700 kg

Without sidecars
0.24 x GVW
With sidecars

Buses and Trucks

GVW > 4,500 kg

Trailers
GVW > 4,500 kg
3. For Hire
Passenger Cars
Light (GVW up to 1,600 kg) 900
Medium (GVW > 1,601-2,300 kg) 1,800
Heavy (GVW > 2,300 kg) 5,000

Utility Vehicles
GVW up to 4,500 kg 0.30 x GVW

Sports Utility Vehicles

GVW up to 2,700 kg 2,300
GVW > 2,700 to 4,500 kg 2,300 +0.46 x GVW in excess of 2,700 kg
MOTOR VEHICLE USER’S CHARGE
Categories Rates in Pesos (Applicable as of 2004)
3. For Hire
Motorcycles
Without sidecars 300
With sidecars 300

Buses
GVW > 4,500 kg 0.30 x GVW

Trucks
GVW > 4,500 kg 1,800 + 0.24 x GVW in excess of 2,700 kg

Trailers
GVW > 4,500 kg 0.24 x GVW
MOTOR VEHICLE USER’S CHARGE
 Under the Department of Transportation and Communication’s (DOTC) Administrative
Order No. 010-2005 (Initial Registration Scheme for Brand New Motor Vehicles Valid
for Three (3) years, dated January 3, 2005), all brand new motor vehicles are required
to have an initial registration which shall be valid and effective for three (3) years from
its registration.

 Such initial registration shall require the Certificate of Conformity (COC), issued by
the Department of Environment and Natural Resources (DENR), and the Compulsory
Third Party Liability insurance policy valid for three (3) years.

 The rates of the MVUC as set forth and imposed under RA 8794 shall be collected
from the owner of the covered motor vehicles for the registration of the said units.

 Section 6 of RA 8794, as implemented under Article I, paragraph 7(c) of its

Implementing Rules and Regulations (IRR), as amended, also provides for penalty for
overloading in an amount equivalent to twenty five percent (25%) of the MVUC on
trucks and trailers for loading beyond their prescribed gross vehicle weight (GVW),
provided that no axle load shall exceed thirteen thousand five hundred kilograms
(13,500 kgs.).
MOTOR VEHICLE USER’S CHARGE
 Under the Land Transportation Office (LTO) AO No. RPC-2016-033 (Registration and/or
Recording of Vintage Motor Vehicles (VMV), Dated March 1, 2016), motor vehicles
falling under the category of vintage or antique motor vehicles are required to be
registered or recorded with the LTO.
 For purposes of collecting the MVUC, vintage motor vehicles (VMVs) shall carry the
applicable classification as provided for under existing laws, rules and regulations. The
collectible MVUC, on the other hand, shall be the rates prescribed under RA 8794
depending on the classification or denomination where the status and configuration of
the VMV fall.

 Excluded from the AO are public utility vehicles, cargo trucks (private/for hire), service
vehicles (hotel limousines, tourist vehicles, car rentals, ambulance, funeral hearse),
government vehicles, and Diplomatic/OEV (Other Exempt Vehicle).
MOTOR VEHICLE USER’S CHARGE
Definition of Terms

 Vintage motor vehicle, as defined under the AO, refers to a motor vehicle
manufactured at least 40 years prior to the current year or with year model earlier than
 1975, not a reproduction, and which has been maintained in or restored to a condition in
conformity with the manufacture specifications and appearance.

 Registration, as defined under the AO, refers to the act of compliance to the
requirements of the law particularly to the documentary requirements, standards, and
payment of MVUC with the end in view of operating the motor vehicle on public roads
and highways.

 Recording is defined as an act of entering into the official records of the LTO the
information of identity of a certain motor vehicle, which is not intended to be operated
on public roads and highways, in compliance to RA 6539, otherwise known as the
“AntiCarnapping Act.”
TRAVEL TAX
Persons Covered by the Travel Tax

The travel tax is a levy imposed by the Philippine government on the following individuals
who are leaving the country irrespective of the place where the air ticket is issued and the
form or place of payment:
a. Citizens of the Philippines;
b. Permanent resident aliens; and
c. Non-resident aliens who have stayed in the Philippines for more than one (1) year.

Travel Tax Rates :

Classification First Class Passage Economy Class Passage
a. Full Rate PhP2,700 PhP1,620
b. Standard Reduced Rate PhP1,350 PhP810
c. Privileged Reduced Rate for Dependents of PhP400 PhP300
Overseas Contract Workers (OCWs)
TRAVEL TAX
Persons required to pay Full Rate
a. Citizens of thePhilippines
b. Taxable Foreign Passport Holders
c. Non-immigrantforeign passport holders who have stayed in the Philippines
for more than one (1) year

Requirements:
a. Original Passport
b. AirlineTicket
TRAVEL TAX
Persons Entitled to the Standard Reduced Rate
a. Minors from 2 to 12 years old;
b. Accredited Filipino journalists on journalistic assignments; and
c. Those authorized by the President of the Republic of the Philippines.

Requirements:
Original Passport
Airline ticket, if already issued

Additional Requirements:
a. For Minors from 2 to 12 years old - In case the original passport cannot be presented,
original birth certificate and photocopy of identification page of passport.
b. Accredited Filipino journalists on journalistic assignments - Certification from the Office
of the Press Secretary and Certification from the passenger’s editor or station manager
that he/she is an accredited journalist
c. Those authorized by the President of the Republic of the Philippines - Written
authorization from the Office of the President expressly entitling the passenger to the
reduced travel tax
TRAVEL TAX
Persons Entitled to the Privileged Reduced Rate
a. Legitimate spouse of an overseas contract worker (OCW); and
b. Unmarried children of an OFW whether legitimate or illegitimate who are below 21
years of age
c. Children of OFWs with disabilities even above 21 years of age
Requirements:
a. Original Passport
b. Original Overseas Employment Certificate (OEC) / Certified true copy of Balik
Manggagawa Form / Certified true copy of the OFW’s Travel Exit Permit / Certification
of Accreditation or Registration / OFW’s valid work visa / Work Permit / OFW’s Valid
Employment Contract / OFW’s valid company ID / OFW’s recent payslip
c. Original or authenticated marriage contract
d. Airline ticket, if already issued
e. Certification from the manning agency that the seaman’s dependent is joining the
seaman’s vessel
Additional Requirement:
a. Children of OFWs with disabilities even above 21 years of age - Original PWD ID card
issued by offices established by the National Council of Disability Affairs (NCDA)
TRAVEL TAX
Persons Exempted from theTravel
The following Filipino citizens are exempted from the payment of travel tax pursuant to Sec.
2 of PD 1183, as amended :

a. OverseasFilipinoworkers
b. Filipinopermanent residents abroad whose stay in the Philippines is less than
yearone
c. Infants(2 years andbelow)

In all cases,they willbe required to bring your Original Passport.

 TRAVEL TAX
Exempt Passengers Requirements (Original Copies)
Foreign Diplomatic and Consular Officials and Certification from the Office of Protocol, Department
Persons Exempted from the Travel of Foreign Affairs or their respective Embassy /
Members of their Staff Consulate
 UN Passport or Certification of Employment from the
UN office or its agency
NOTE: Dependents are also exempted if fare is paid
for and certified by the UN. For dependents of
employees of other UN agencies, a certification and
proof from the organization / agency is required

Officials, Consultants, Experts, and Employees of

the United Nations (UN) Organization and its
agencies
United States (US) Military Personnel including Government Transport Request (GTR) for a plane
dependents and other US nationals with fares paid ticket or certification from the US Embassy that the
for by the US government or on US fare is paid from the US Government funds
Governmentowned or chartered transport facilities
Overseas Filipino Workers If hired through POEA, the Overseas Employment
Certificate serves as the Exemption Certificate If
directly hired abroad, a Certificate of Employment
issued by the Philippine Embassy / Consulate in the
place of work or an Employment Contract
authenticated by the Philippine Embassy / Consulate
NOTE: The OEC is valid as Exemption Certificate if
used in going to the OFW’s worksite

TRAVEL TAX
Exempt Passengers Requirements (Original Copies)
Crewmembers of airplanes plying international Certification from the Civil Aeronautics Board that the
Persons Exempted from the Travel crewmember is joining his aircraft, indicating the crew
routes member’s name, position, and location of aircraft
  Copies of the identification pages of passport and
stamp of last arrival in the Philippines
 Proof of permanent residence in foreign country
(e.g. US Green card, Canadian Form 1000, etc)
 Certification of Residence issued by the Philippine
Embassy / Consulate in the country which does not
grant permanent resident status or appropriate
entries in the passport
Filipino permanent residents abroad whose stay in
the Philippines is less than
one (1) year
Philippine Foreign Service Personnel officially Certification to this effect from the Department of
assigned abroad and their dependents Foreign Affairs
Officials and Employees of the Philippine Govern Certified true copy of Travel Authority or Travel Order
ment traveling on official business (excluding from the Department Secretary concerned to the
Government-Owned and Controlled effect that such officials / employees are traveling on
Corporations) official business
Grantees of foreign government funded trips Proof that travel is funded or provided by a foreign
government

TRAVEL TAX
Exempt Passengers Requirements (Original Copies)

BonaPersons -fide Students with approved Certification to this effect from concerned government
agency
scholarships by Exempted from the NOTE: “Student” is defined as a person attending formal
Travel classes in an educational institution for the purpose of
appropriate government agency taking up a course leading to a diploma, the duration of
which is not less than one (1) year
Infants (Up to second birthday on date of travel) In case the original passport cannot be presented, the
original birth certificate and photocopy of ID page of
passport
 Certification to this effect from the Board of
Investments

Personnel (and their dependents) of multinational

companies with regional headquarters, but not
engaged in business, in the Philippines
Those authorized by the President of the Republic Written authorization from the Office of the President
of the Philippines for reasons of national interest expressly entitling the passenger to travel tax
exemption
As provided under R.A. 6768, Balikbayans whose  Identification pages of passport and stamps of last
stay in the Philippines is less than one (1) year departure from and arrival in the Philippines, durati
on of which is at least one (1) year
 Airline ticket used in traveling to the Philippines
TRAVEL TAX
Exempt Passengers Requirements (Original Copies)

Persons
As provided Exempted from
under R.A. 6768, the
Family Travelof Foreign passport of former Filipino or other evidence
members
former Filipinos accompanying the latter of former Philippine Citizenship

Birth certificate or adoption papers of children and / or

marriage contract of accompanying spouse

Every passenger entitled to travel tax exemption should first secure a Travel Tax Exemption
Certificate from the Philippine
Tourism Authority(PTA), now the Tourism Infrastructure and
Enterprise Zone Authority(TIEZA), prior to leaving the country. As perPTA Memorandum
Circular No. 03-2003 effective January 1, 2004,the processing fee collected for every Travel
Tax Certificate issued whether forexemption, reduced rate or refund, is Two Hundred Pesos
(PhP 200.00).
TRAVEL TAX
Payment, Collection and Remittance of the Tax
For those whose tickets are issued in the Philippines, payment of the travel tax may be
done through the carriers or travel agencies which collect and remit the tax to the
TIEZA.

For carriers or travel agencies that do not include travel tax in the tickets, as well as for
those with tickets issued outside the Philippines, international departing passengers
must pay through TIEZA travel tax counters at the airport, or online via
www.tieza.gov.ph and authorized travel tax collecting entities.

The TIEZA shall retain its share and remit to the Bureau of Treasury on a quarterly
basis the balance of the travel tax collection pertaining to the Commission on Higher
Education (CHED ) and National Commission for Culture and the Arts (NCCA ).
TRAVEL TAX
Travel Tax Allocation
Proceeds from the travel tax accrue to different agencies with the following shares :
a. Tourism Infrastructure and Enterprise Zone Authority (TIEZA) – 50 %
b. National Endowment Fund of the National Commission for Culture and Arts ( NCCA)
– 10 %
c. Higher Education Development Fund of the Commission on Higher Education
(CHED) – 40 %.
HEAD TAX
The Head Tax is imposed under Commonwealth Act (CA) No. 613, as amended, and
implemented pursuant to Sec. 54, Chapter12, Book IV of the Revised Administrative
Code of 1987 and Unnumbered Bureau of Immigration Memorandum dated May 12,
2000.

Every alien over 16 years of age admitted into the Philippines fora stay exceeding fifty
nine days; aliens with permanent residence statusin the Philippines upon return from
travel abroad and retrieval of theirAlien Certificate of Registration (ACR)/Immigration
Certificate of Residence (ICR ); and aliens applying for Re-entry Permit (RP) and the
issuance/ renewal/re-issuance of Special Return Certificate (SRC) have to pay, among
others, a tax of PhP250. The head tax shall be paid to the Immigration Officeror to
his/her duly authorized representative at the time of entry of the alien.
CHARGES ON FOREST PRODUCTS (RA 7161)
 Forest charges are imposed for the privilege of exploiting the country’s
forest resources as well as an instrument of environmental protection for
sustainable development. These are applied to naturally growing timber
and forest products gathered within public forestlands, alienable and
disposable lands and private lands.
 However, the cutting and manifestation of all mangrove species are
prohibited.
 Forest charges collected shall be in lieu of the administrative charge on
environment and other fees and charges imposed thereon .
CHARGES ON FOREST PRODUCTS (RA 7161)
Forest charges are collected per cubic meter on the following forest products:
1. Timber cut in forestland
a. First, second, third and fourth groups - 25% of actual Freight on Board (FOB)
market price based on species and grading.
b. Pulpwood and matchwood - 10 % of actual FOB market price.
2. Firewood, branches and other recoverable wood wastes of timber (such as timber
ends, tops and stumps) when used as raw materials for the manufacture of finished
products - PhP10.00 per cubic meter.
3. Minor forest products such as rattan, gums and resins, beeswax, guttapercha,
almaciga resin and bamboo - 10 % of actual FOB market price.

The actual FOB market price is determined once a year by the Secretary of Environment
and Natural Resources, through a Committee created for the purpose. The Committee is
composed of representatives from the Department of Environment and Natural
Resources (DENR), National Economic and Development Authority (NEDA), Department
of Trade and Industry (DTI), Bureau of Internal Revenue (BIR), wood and furniture
industry and consumers sectors. In the determination of the actual FOB market price,
the Committee takes into account the production cost (developing cost, contingencies
and miscellaneous cost), species and grade of timber and forest products.
CHARGES ON FOREST PRODUCTS (RA 7161)
The following forest products are exempt from forest charges:
a. All other minor forest products not cited above; and
b. Planted trees and other forest products harvested from industrial tree plantation area
and in private lands covered by existing land titles and approved land applications .*

*However planted, trees harvested in compliance with timber license agreement’s (TLA’s )
reforestation activities shall be subject to 30% government share based on gross sales of
the timber, computed at the farm gate price as determined by the Regional Office
concerned.
CHARGES ON FOREST PRODUCTS (RA 7161)
Thus, the prevailing rates of forest charges pursuant to DENR Administrative Order No.
2000 -63 (July 31, 2000) are as follows :
FOREST CHARGES SPECIES (In Pesos)
SPECIES
Luzon Visayas Mindanao
1. Timber (per cubic meter )
a. Philippine Mahogany Group, Manggasinoro Group, 1,400.00 1,400.00 1,425.00
Manggachapui Group, Narig Group, Palosapis Group
and Guijo Group.
b. Yakal Group 1,500.00 1,500.00 1,530.00
c. Apitong Group 1,260.00 1,260.00 1,260.00
d. Softwood Species except Igem 715.00 715.00 715.00
e. Igem 1,275.00 1,275.00 1,275.00
f. Nato 1,000.00 1,000.00 1,000.00
g. Furniture/Construction Hardwood 950.00 950.00 950.00
h. Premium species, if allowed to be cut 3,000.00 3,000.00 3,000.00
i. Lesser -Used Species 700.00 700.00 700.00
2. Pulpwood, chipwood and matchwood species 95.00 95.00 80.00
(per cubic meter )
3. Firewood, branches and other recoverable wood 10.00 10.00 10.00
wastes of timber (per cubic meter)
CHARGES ON FOREST PRODUCTS (RA 7161)
FOREST CHARGES SPECIES (In Pesos)
SPECIES
Luzon Visayas Mindanao
4. Rattan -unsplit (per linear meter )
Palasan , Calape and Kurakling
a. Over 2 cm. in diameter 1.40 1.40 1.40
b. 2 cm. or less in diameter 0.95 0.95 0.95

Sika and Arorong 0.10 0.10 0.10

Tumalin , Limuran , Ditaan and other species of rattan

a. Over 2 cm. in diameter 1.40 1.40 1.40
b. 2 cm. or less in diameter 0.80 0.80 0.80
5. Rattan -split (per kilogram) 5.50 5.50 5.50
6. Bamboo (per piece)
 Kawayan Tinik/Kawayan Kiling 0.60 0.60 0.60
 Bayog 0.30 0.30 0.30
 Boho /Bolo 0.20 0.20 0.20
 Other species of Erect Bamboos 0.15 0.15 0.15
ENERGY CONSUMPTION TAX ON ELECTRIC
POWER CONSUMPTION
Batas Pambansa (BP) Blg . 36 (September 7, 1979) imposes an electric energy
consumption tax on the monthly electric power consumption of every residential
customer of electric power utilities.

Tax Rate for Energy Tax

Within Metro Manila
Monthly Consumption Rate
Not over 650 KWH Exempt

Over 650 KWH but not over 1,000 KWH PhP0.10/KWH in excess of 650 KWH

Over 1,000 KWH but not over 1,500 KWH PhP35.00 plus PhP0.20/KWH in excess of 1 ,000 KWH

Over 1,500 KWH PhP135.00 plus PhP0.35/KWH in excess of 1 ,500 KWH

ENERGY CONSUMPTION TAX ON ELECTRIC
POWER CONSUMPTION
Tax Rate for Energy Tax
Outside Metro Manila
Monthly Consumption Rate
If the electric power rates (excluding the Exempt
energy tax) are equal to or higher than the
electric power rates (including the energy tax) prevailing in
Metro Manila

If the prevailing electric power rates (excluding the energy The tax is equal to the difference or the
tax) are less than the prevailing electric power rates full amount of energy tax, whichever is
(including the energy tax) in Metro Manila lower
ENERGY CONSUMPTION TAX ON ELECTRIC
POWER CONSUMPTION
Other taxes imposed on energy consumption:
1. Local Franchise Tax - This is paid to local government units, in accordance with the
provisions of Sections 15 and 137 of the Local Government Code. This is a
passthrough charge for Meralco, paid and collected in accordance with ERC
Regulations.
2. Value Added Tax - This is a consumption tax imposed on the sale of electricity and
related services through all stages of generation, transmission, distribution and sale
of electricity to the final consumer.
3. Tax Recovery Adjustment Charge (TRAC) - This is an LGU-specific charge collected
from customers of the different local government units where local franchise taxes,
prior to rate unbundling, were already paid by Meralco but not yet recovered from
customers. Last April 2012, billing of TRAC began in accordance with the ERC
approval in its Decision under ERC Case No. 2011-045 RC.
ENERGY CONSUMPTION TAX ON ELECTRIC
POWER CONSUMPTION
For government taxes,the tax base is effectively the amount incurred for that specific
charge being taxed. The following table explains the components used as billing
determinants for the taxes charged. The tax rate is based on various government tax
issuances.
ENERGY CONSUMPTION TAX ON ELECTRIC
POWER CONSUMPTION
Taxes Billing Determinants
Local Franchise Tax Summed billed amounts of the following:
- Generation Charge
- Transmission Charge
- System Loss Charge
- Distribution Charge
- Monthly/Fixed Supply Charges
- Monthly/Fixed Metering Charges
- Lifeline Discount/Subsidy
- Senior Citizen Discount/Subsidy
Value Added Tax Imposed individually on the following charges:
- Generation Charge
- Transmission Charge
- System Loss Charge
- Distribution Charge
(Distribution + Supply + Metering
)
- Subsidies
- Local Franchise Tax
Energy Tax Imposed on residential customers with a monthly kWh consumption that
exceeds 650 kWh
ENERGY CONSUMPTION TAX ON ELECTRIC
POWER CONSUMPTION
Payment and Remittance of Tax

The tax shall be paid to and withheld by electric utilities from their respective residential
customers along with their monthly electric billings .

Within twenty (20) calendar days at the end of each calendar month , the owner,
proprietor, operator or any person in charge of the electric utility shall:
a. Remit the total amount of tax collection; and
b. File a true and correct return with the Commissioner of Internal Revenue .
ENERGY CONSUMPTION TAX ON ELECTRIC
POWER CONSUMPTION
Penalty
Grounds Surcharge
Non-remittance of tax by the owner, due proprietor, operator or any person in 25% of the tax
charge of the electric utility;

Willfully neglecting to file the return within the prescribed period; and 50% of the tax due

Willfully making a false or fraudulent return. 50% of the tax due

The amount so added to any tax shall be collected at the same time and in the same
manner and as part of the tax unless the tax has been paid before the discovery of the
falsity or fraud, in which case, the amount so assessed shall be collected in the same
manner as the tax.
Questions to Ponder:
1. Explain the nature of motor vehicle users charge.
2. What are the rules in the application of road tax on vintage cars?
3. Who are liable for travel tax?
4. Who are the persons exempted from the travel tax and what are the requirements for travel tax
exemption?
5. What is head tax?
6. What is FOB market price for charges on forest products?
7. Explain the taxes imposed on energy consumption?
REQUIRED READING/S and OTHER LEARNING RESOURCES
Videos:
Whyare Electricity Rates in the Philippines the Highest in Asia?

References:
Republic of the Philippines
– Department of Finance
– National Tax Research Center

TaxReform
-Department of Finance

Travel Tax

Understanding your Bill