Summary
RR No. 3-2026 implements Executive Order No. 114, Series of 2026, which temporarily suspends excise taxes on specific petroleum products under Section 148 of the NIRC.
Key points
- Suspended products. From April 17, 2026, excise taxes are suspended on LPG, except when used as raw material for petrochemical products or for motive power, and on kerosene, except when used as aviation fuel. It applies only to products removed from the place of production or customs custody after the EO took effect.
- Duration and reversion. The suspension lasts three (3) months and is reviewed monthly by the DBCC, which recommends continuation, modification, extension, or termination to the President. Rates revert automatically one (1) week after the one (1)-month average Dubai crude oil price (MOPS) falls below USD 80 per barrel as certified by the DOE, or when the three months end.
- Monthly reports. The BIR and BOC send Congress a monthly report on declared value and volume every fifteenth (15th) day of the following month. The BIR uses Authorities to Release Imported Goods and manufacturers’ Official Registry Books, and the BOC uses Customs Entries in the E2M System.
- Returns and import documents. Domestic LPG and kerosene manufacturers keep filing returns with the tax rate shown as “zero” and the remark “EO NO. 114, SERIES OF 2026”, and submit Official Register Books per removal. Importers keep filing returns with the BOC and secure the ATRIG with the same remark.
- Stock inventories. Manufacturers, importers, and lessees of storage depots submit notarized inventories as of April 16, 2026 within ten (10) days after the EO took effect, in the Annex A format. They go to the Excise LT Field Operations Division for the listed Revenue Regions, or to the concerned Excise Tax Area for others.
- Withdrawal Certificates and penalties. Withdrawal Certificates for covered products carry the stamp “STOCKS COVERED BY EO No. 114, SERIES OF 2026”. Violations, including missed reports, carry penalties under Title X of the NIRC.
Who is affected
- Manufacturers of LPG and kerosene
- Importers of LPG and kerosene
- Lessees of storage depots
Deadlines and effectivity
- Suspension starts: April 17, 2026, for three (3) months
- Stock inventory as of April 16, 2026, submitted within 10 days after EO effectivity
- Monthly report: every 15th day of the following month
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.