Tax Alert No. 15 [Revenue Regulations No. 03-2026 and Revenue Memorandum Circular No. 31-2026 dated 17 April 2026]

Implementing and circularizing Executive Order No. 114, Series of 2026, Entitled "Temporarily Suspending the Excise Taxes on Specific Petroleum Products Pursuant to Section 148 of Republic Act No. 8424, or the National Internal Revenue Code of 1997, as Amended"

The Bureau of Internal Revenue (BIR) has issued Revenue Regulations (RR) No. 03-2026 and Revenue Memorandum Circular No. (RMC) No. 31-2026 in view of the issuance of Executive Order (EO) No. 114, Series of 2026, entitled "Temporarily Suspending the Excise Taxes on Specific Petroleum Products Pursuant to Section 148 of Republic Act No. 8424, or the National Internal Revenue Code of 1997, as Amended,"

EO No. 114, series of 2026, was issued pursuant to Republic Act No. 12316, implementing the temporary suspension of the excise taxes imposed under said provision on specific petroleum products.

The salient points of these issuances are discussed below.

1. Coverage of the Suspension of Excise Taxes

The imposition of excise taxes on the following covered petroleum products is hereby suspended:

a. LPG, except when used as raw material for the production of petrochemical products or        used for motive power; and

b. Kerosene, except when used as aviation fuel.

The suspension of excise taxes shall apply only to the covered petroleum products removed from the place of production or customs custody after the effectivity of the EO.

2. Duration of the Temporary Suspension and Automatic Reversion of Rates

The temporary suspension of excise taxes on the covered petroleum products shall be effective for a period of three (3) months beginning April 17, 2026.

The excise tax rates shall automatically revert to the rates prescribed under the Tax Code, without the need for further issuances, upon the occurrence of any of the following:

3. Reportorial Requirements

For the effective implementation of the EO, the following guidelines shall be followed: 

a. Submission of Returns and Reports

i. Manufacturers of domestically-produced LPG and kerosene shall:

> Continue to submit the corresponding tax returns with the BIR indicating the corresponding tax rate as "zero" with remarks "EO NO. 114, SERIES OF 2026". All other pertinent fields shall be filled out in the regular course of business; and

> Submit the corresponding Official Register Books (ORBs) per removal of LPG and kerosene products.

  ii. Importers of LPG and kerosene products shall:

> Continue to submit the corresponding tax returns to the BOC; and

> Secure the corresponding Authority to Release Imported Goods (ATRIG) with remarks "EO NO. 114, SERIES OF 2026".

b. Stock Inventories

Concerned manufacturers, importers, and lessees of storage depots shall submit duly notarized inventories of all covered petroleum products as of April 16, 2026, within ten (10) days from the effectivity of the EO, to the following offices:

i. Excise LT Field Operations Division (ELTFOD)

taxpayers registered within Revenue Region (RR) Nos. 4 (Central Luzon), 5 (CaMaNaVa and Bulacan), 6 (City of Manila and Palawan), 7A (Quezon City), 7B (East NCR) 8A (Makati City), 8B (South NCR), 9A (CaBaMiRo) and 9B (LaQueMar).

ii. Excise Tax Area (EXTA)

taxpayers registered outside of RR Nos. 4 to 9B.

c. Issuance of Withdrawal Certificates

All Withdrawal Certificates issued for the removal of covered petroleum products covered by the suspension shall be prominently stamped with the phrase "STOCKS COVERED BY EO No. 114, SERIES OF 2026".

You may access the full text of RR No. 03-2026 and RMC No. 31‑2026 through the BIR website.

For any inquiry or request for assistance, please feel free to contact anyone from our Tax Services group. You may also reach us through this link