The paper discusses the different taxation scheme of petroleum products in the ASEAN countries.
The taxation of petroleum products in the ASEAN countries could be generally classified into three, viz: ad valorem tax (AVT), specific tax, and a mixed structure of ad valorem and specific.
On the pure ad valorem system, Myanmar has the highest nominal rate of 180% for earth oil while Cambodia has the lowest at 4.35% on diesel fuel. On the other hand, for countries imposing a specific excise tax system, Singapore and the Philippines have varied rates for the different types of oil products. Singapore has the highest rate of P23.40 tax per liter on motor spirit, and premium leaded whereas the Philippines has the lowest rate of P 0.05 for processed gas and denatured alcohol with zero tax on diesel, kerosene, LPG, and bunker fuel oil.
The other countries that impose either ad valorem or specific, or both for petroleum products are Thailand and Malaysia. Thailand also exempts certain oil products from the excise tax.
Generally, the Philippines has lower taxes on petroleum products compared to its ASEAN neighbors.
