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REVENUE MEMORANDUM CIRCULAR (RMC) NO. 031-2026
This circular is issued to inform and guide all concerned parties on the implementation of Executive Order No. 114 (2026) it is also the clarification of Revenue Regulations (RR) 3-2026, which temporarily suspends excise taxes on specific petroleum products in accordance with Republic Act No. 8424, as amended by Republic Act No. 12316, including the applicable conditions and limitations.
| Section 1. Temporary Suspension of Excise Taxes on Specific Petroleum Products. | Excise taxes on LPG, except when used as raw material in petrochemical production or as aviation fuel, are temporarily suspended for three (3) months from the Order’s effective. |
| Section 3. Automatic Reversion of Rates. | The suspension automatically reverts to previous tax rates upon occurrence any of the following whichever comes first: Dubai crude oil price falls below USD 80/barrel for one week after the first month; or Upon expiration of the three-month period. |
| Section 4. Monitoring and Inventory Requirement. | The DOE and DOF, through the BIR and BOC, will monitor inventory and release of covered petroleum products. The BIR must submit monthly reports to Congress on volumes and declared values. |
| Section 6. Implementing Guidelines. | The DOE, DOF, BIR, and BOC will issue implementing rules and guidelines and ensure compliance with relevant laws, which will be presented in the of EO No. 114 in page 2. |