The Philippines Bureau of Customs implemented a second tranche of its Tax Reform for Acceleration and Inclusion Law, or TRAIN, taxing a number of products, including lubricating oils and greases, along with base stocks and lubricant additives.
In a release issued Jan. 10, the bureau stated that a rate of 9 pesos (U.S. 17 cents) per liter applies to lubricating oils and 9 pesos per kilogram to greases. This includes but is not limited to base stocks used to make finished lubricating oils and greases, high vacuum distillates, aromatic extracts and other similar preparations, the bureau said. Lubricant additives, petroleum based or not, are also taxed under the law.
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The same rate of 9 pesos applies per liter to locally produced or imported oils previously taxed but subsequently reprocessed, refined or recycled.
The new tax was made effective Jan. 4. TRAIN, introduced in January of last year, cut income tax rates and raised taxes on fuel and sugar-sweetened beverages in its first iteration.