SECTION 1. SCOPE. - Pursuant to the provisions of Section 244 in relation to Section 245 of the National Internal Revenue Code of 1997 (NIRC), as amended, and Section 84 of Republic Act No. 10963, otherwise known as the œTax Reform for Acceleration and Inclusion (TRAIN) Law , these Regulations are hereby promulgated to amend the relevant provisions of Revenue Regulations (RR) No. 13-94 by providing for the revised tax rates on mineral products.

SEC. 2. Amending Section 3 of RR No. 13-94

SEC. 3. DEFINITION  OF TERMS. - For purposes of these Regulations, the following words and phrases shall have the meaning indicated below:

a.   xxx

xxx     xxx     xxx

g.   Gross Output shall be interpreted as the actual market value of minerals or mineral products or of bullion from each mine or mineral land operated as a separate entity, without any deduction from mining, milling, refining (including all expenses incurred to prepare the said minerals or mineral products  in  a  marketable   state),  as  well  as  transporting,   handling, marketing  or  any  other  expenses:  Provided,  That  if  the  minerals  or mineral products are sold or consigned abroad by the lessee or owner of the  mine  under  C.I.F.  terms,  the  actual  cost  of  ocean  freight  and insurance  shall  be  deducted:  Provided,  however,  That  in  the  case  of mineral  concentrate,  not traded  in commodity  exchanges  in the Philippines  or abroad,  such  as  copper  concentrate,  the  actual  market value shall be the world price quotations of the refined mineral products content   thereof   prevailing   in  the  said  commodity   exchanges,   after deducting   the  smelting,   refining  and  other  charges  incurred  in  the process of converting the mineral concentrates into refined metal traded in those commodity exchanges:

SEC. 3. Amending Section 5 of RR No. 13-94

œSEC.  5.  PAYMENT  OF  EXCISE  TAX  ON  MINERALS  AND  MINERAL PRODUCTS. -

A.   Rate and Base of Tax. - There shall be levied, assessed and collected on mineral, mineral products and quarry resources, excise tax as follows:

3.1  On domestic and imported coal and coke:

Date of Effectivity	Excise Tax per Metric Ton
January 1, 2018	Fifty pesos ( P50. 00)
January 1, 2019	One hundred pesos (P100. 00)
January 1, 2020	and onwards One hundred and fifty pesos (P150. 00)

Coal produced under Coal Operating Contracts entered into by the government pursuant to Presidential Decree No. 972 as well as those exempted  from  excise  tax on mineral  products  under  other  laws  shall now be subject to the applicable rates above beginning January l, 2018.

3.2  All nonmetallic minerals and quarry resources:

	Excise Tax
Locally extracted or produced	Four per cent ( 4%) based on the actual mar ket value of t he gross out put t hereof at the time of removal.
Imported	Four percent ( 4%) based on the value used by the Bureau of Customs (BOC) indetermining tariff and customs duties, net of excise tax and value-added t ax.
Locally extracted natural gas and liquefied natural gas	Exempt.

3.3  All metallic minerals:

 

Excise Tax

Locally extract ed or produced copper, gold, chromite and other metallic minerals

Four per cent (4%) based on t he actual market value of t he gross out put thereof at t he ti me of removal.

Imported copper, gold, chromite and other metallic minerals

Four per cent ( 4%) based on the value used by the BOC in determining tariff and customs duties, net of excise tax and value-added t ax

3.4  Indigenous   petroleum,   a   tax   of   six   percent   (6%)   of   the   fair international   market  price  thereof,  on  the  first  taxable  sale,  barter, exchange or such similar transaction, such tax to be paid by the buyer or purchaser before removal from the place of production. The phrase ˜first taxable sale, barter, exchange or similar transaction ™ means the transfer of indigenous petroleum in its original state to a first taxable transferee. The  fair international  market  price  shall  be determined  in consultation with an appropriate government agency;

For the purpose of this Subsection, ˜indigenous petroleum ™ shall include locally-extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral gas and all other similar or naturally associated substances with the exception of coal, peat, bituminous shale and/or stratified mineral deposits. 

B.   xxx 

SEC.  4.  REPEALING/AMENDATORY  CLAUSE.  -  All  regulations,  rulings  or orders or portions thereof not consistent herewith are hereby revoked, repealed, modified or amended accordingly.

SEC.   5.   EFFECTIVITY   CLAUSE.   -   These   Regulations   shall   take   effect immediately after its complete publication in a newspaper of general circulation.