The Court of Tax Appeals (CTA) has turned down the petition of a giant oil company to get back from the Bureau Internal Revenue (BIR) more than P65 million in advance excise tax payment for the importation of a raw material used in the manufacture of gasoline.
Petron Corporation argued that imposing separate excise tax on alkylate and on the finished product gasoline is tantamount to double taxation.
It stressed that alkylate is not a finished product and cannot be used as motor fuel.
But the court's Second Division stated that the collection of excise on imported alkylate and the manufacture and sale of gas are "separate subject matter."
It pointed out that one chemical component of alkylate, isobutene, undergoes the process of distillation like naptha used in the production of solvent.
Thus, the court said both raw materials are subject to excise tax as prescribed under Section 148 of the Tax Code.
Court records showed Petron paid a total of P65.2 million for bringing in the chemical on several occasions in 2025.
The 54-page resolution was penned by Associate Justice Juanito Castaneda, Jr. and concurred by Associate Justice Jean Marie Bacorro-Villena.