Manila: The Department of Finance (DOF), upon the recommendation of the Bureau of Internal Revenue (BIR), issued guidelines implementing the temporary suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene.

According to Philippines News Agency, the rules enforce Executive Order No. 114, s. 2026, signed by President Ferdinand R. Marcos Jr. on April 16. Revenue Regulations No. 3-2026 provides full suspension of excise taxes on LPG, except when used as petrochemical feedstock or fuel, and on kerosene, except when used as aviation fuel, effective Friday.

The suspension will last three months, subject to monthly review by the Development Budget Coordination Committee. The BIR and Bureau of Customs (BOC) are required to submit monthly reports to Congress on the volume and value of covered petroleum products. The DOF, through the BIR and BOC, will also conduct an inventory of LPG and kerosene stocks upon the order's effectivity.

The guidelines mandate manufacturers of domestically-produced LPG and kerosene to continue submitting the corresponding tax returns with the BIR indicating the corresponding tax rate as zero and submit the corresponding official register books per removal of LPG and kerosene products. Importers of LPG and kerosene, meanwhile, shall continue to submit the corresponding tax returns to the BOC and secure the corresponding authority to release imported goods with remarks "EO No. 114, Series of 2026."

Violations of the provisions of the regulations, including non-compliance with reportorial requirements, shall be subject to penalties. BIR Commissioner Charlito Martin Mendoza said the BIR is working closely with the DOF to immediately implement the President's directive on the suspension. The bureau said it is also studying other measures to support the government's relief efforts during the crisis.