Philippines to release new regulation aimed at curbing oil smuggling

The Philippine government said it will soon issue a regulation aimed at curbing rampant oil smuggling in the country. The Bureau of Internal Revenue (BIR) will issue the implementing rule that will require oil importers to pay their taxes first before the Bureau of Customs (BOC) can release their fuel products, according to Finance Secretary Cesar Purisima. He said the Department of Finance, the BIR and the Bureau of the Treasury are now drafting the mechanism to implement the regulation. The Department of Energy estimates that about Php60 billion (US$1.4 billion) of imported oil products are not paying the correct duties and taxes, resulting in about Php9.5 billion (US$224.4 million) of lost revenues. Of this amount, Php7 billion (US$165.4 million) are excise tax payments and Php2.5 billion (US$59 million) import duties. Last year, the BOC filed oil smuggling cases against Petronas Energy Philippines Inc., Jetti Petroleum Inc., Pilipinas Shell Petroleum Corp., Phoenix Petroleum Philippines Inc., Cross Country Oil and Petroleum Corp., Oilink International Corp. and Filpride Resources Inc. (January 31, 2012)