MANILA, Philippines — Senator Grace Poe said Tuesday she will re-file her bill seeking to temporarily suspend the collection of excise tax on oil products amid high prices of commodities.
Poe, who chairs the Senate committee on public services, said that suspending the oil excise tax will bring instant aid to the public as it will lower fuel prices and essentially reduce costs of goods and services.
The senator said she will re-file the measure when the 19th Congress convenes in July.
“To our people in daily survival mode, the oil tax reprieve will provide a crucial lifeline,” Poe said in a statement.
“The revenues the government will generate from the excise tax to fund cash aid might come too late for families who have nothing to eat now. As the saying points out, ‘Aanhin pa ang damo, kung patay na ang kabayo’,” the senator added.
Poe’s bill seeks to amend the National Internal Revenue Code to provide for the automatic suspension of the excise tax on regular gasoline, unleaded premium gasoline, and diesel when the average Dubai crude oil—based on the Mean of Platts Singapore—for three months prior to the scheduled increase of the month reaches or exceeds $80 per barrel.
Tax Reform for Acceleration and Inclusion (TRAIN) law, the excise tax on regular and unleaded premium gasoline is currently set at P10 per liter and P6 per liter for diesel. Aside from this, a value-added tax of 12 percent is also imposed on gasoline and diesel.
According to Poe, the suspension of the excise tax will immediately bring down costs by P10 per liter for gasoline and P6 per liter for diesel
“If the government is willing to spend billions in cash assistance to targeted beneficiaries, then it should also be ready to forego a portion of its revenues during the most critical times in order to save millions of lives,” Poe said.
“We hope that this call on excise tax suspension, which is becoming louder by the day, will merit serious consideration from the incoming administration,” the senator added.
President-elect Ferdinand “Bongbong” Marcos Jr. earlier said that there are other ways to address the rising cost of fuel aside from merely suspending the excise tax on oil products.
He said that he is looking at possibly supporting hard-hit areas instead of fully suspending excise taxes, as the government needs funds for its projects.
Bongbong Marcos nixes suspension of fuel excise tax, to explore other options
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