Gov’t Poised to Suspend Excise Tax Once Oil Price Reaches USD80

Malacañang on Tuesday assured that measures will be in place to protect consumers from incessant increase in oil prices including suspending the excise tax on fuel.

“Excise taxes will be suspended if they reach a certain amount, if I’m not mistaken, (USD) 80,” presidential spokesperson Harry Roque said in a Palace briefing.

Roque made this statement after the local oil industry announced on Monday that it has raised oil prices — the second week in a row when pump prices went up by more than PHP1 per liter.

In separate announcements, local oil firms increased gasoline prices by PHP1.60/liter, diesel by PHP1.15/liter and kerosene by PHP1/liter.

Roque said concerned government agencies will be releasing funds meant to cushion the effects of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

“We’re ready. Kung talagang umabot ng ganyan kataas ay isususpende ang koleksyon ng excise taxes pagdating sa produkto ng langis (If fuel prices have reached that much, we’re ready to suspend the collection of excise tax on fuel),” Roque said.

He will be asking both the Department of Finance (DOF) and the Department of Budget and Management (DBM) to release other benefits aside from the PHP200 amelioration fund.

“Yung iba pang mga benepisyo na dapat ibigay, dapat irelease na as a result of TRAIN dahil hindi lang yung PHP200 amelioration fund ang dapat ibigay, marami pa pong mga biyaya na dapat ibigay (The others benefits should be released by now as a result of TRAIN because it’s not only the PHP200 amelioration fund that should be given, there’s a lot more to distribute),” Roque said.

Roque was referring to the PHP200 cash subsidy provided by the Department of Social Welfare and Development for poor people affected by the TRAIN.

“Makipag-ugnayan po tayo sa Department of Finance at sa DBM at tatanungin ko kung nai-release na yung iba pang mga biyayangintended to ameliorate or ibsan yung epekto ng TRAIN (We will coordinate with the DOF and DBM and I will ask them if they have released the funds intended to ameliorate the effect of TRAIN),” he added. (PNA)