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Philippines: New law authorizes president to suspend or reduce excise tax on petroleum products

Suspension or reduction of excise tax may be implemented when the average Dubai crude oil price reaches or exceeds US$80 per barrel for one month

may 4, 2026

The president on March 25, 2026, signed into law Republic Act (RA) No. 12316, authorizing the president to suspend or reduce excise taxes on petroleum products.

The new law provides that:

  • The suspension or reduction of excise tax may be implemented when the average Dubai crude oil price, based on Mean of Platts Singapore (MOPS), reaches or exceeds US$80 per barrel for one month immediately preceding the issuance of the order.
  • The measure may be applied to specific petroleum products and take the form of either a full suspension or a partial reduction of excise taxes, depending on prevailing conditions.
  • Any suspension or reduction is limited to a maximum of three months at a time, with an aggregate cap of one year per calendar year.
  • Excise tax rates will automatically revert to their original levels either (1) when oil prices fall below the threshold, or (2) after the lapse of the applicable period.
  • The authority granted to the president to suspend or reduce excise taxes is valid until December 31, 2028.

The RA was published in the official gazette on March 25, 2026, and took effect on April 9, 2026.


For more information, contact a KPMG tax professional in the Philippines:

Leandro Ben M. Robediso | lrobediso@kpmg.com

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