DOF, BIR suspend LPG, kerosene excise taxes

The Department of Finance, upon the recommendation of the Bureau of Internal Revenue, has issued Revenue Regulations No. 3-2026 to implement the temporary suspension of excise taxes on liquefied petroleum gas and kerosene as the government rolls out relief measures during the current crisis.

The regulation was issued on April 17, 2026, and took effect the same day, setting the implementing rules for the tax suspension on covered petroleum products.

The measure carries out Executive Order No. 114, series of 2026, which President Ferdinand R. Marcos Jr. signed on April 16, 2026, under the title, “Temporarily Suspending the Excise Taxes on Specific Petroleum Products Pursuant to Section 148 of the National Internal Revenue Code of 1997, as Amended.”

Under Revenue Regulations No. 3-2026, the excise tax on LPG is fully suspended beginning April 17, 2026, except when the product is used as a raw material for the production of petrochemical products or for motive power.

The same regulation also fully suspends the excise tax on kerosene beginning April 17, 2026, except when it is used as aviation fuel.

The temporary suspension will remain in effect for three months, subject to a monthly review by the Development Budget Coordination Committee.

The issuance lays down specific compliance rules for both imported and locally produced petroleum products covered by the tax break.

The guidelines direct the BIR and the Bureau of Customs to submit to Congress a monthly report on the declared value and volume of the covered petroleum products.

For imported petroleum products, the reporting will be based on the Authorities to Release Imported Goods.

For locally produced petroleum products, the reporting will be based on the Official Registry Books of manufacturers or Customs Entries filed in the E2M System, as applicable.

The regulations also spell out the documentary requirements for importers and manufacturers of the covered products.

They likewise provide stock inventory requirements and penalties for violations.

BIR Commissioner Charlito Martin R. Mendoza said the agency is coordinating closely with the Finance Department to carry out the order without delay.

“BIR Commissioner Charlito Martin R. Mendoza said the Bureau is working closely with the DOF to swiftly implement the President’s directive on the suspension and is also studying other measures to support the government’s relief efforts during the crisis.”

The temporary suspension of excise taxes is expected to ease pressure on households and businesses that rely on LPG and kerosene, both of which are widely used for cooking, heating and other energy needs.