Gov’t poised to suspend excise tax once oil price reaches USD80

MANILA MalacaAang 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 was referring to the implementing guidelines for petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) law which states that for the period covering 2018 to 2020, the scheduled increase in the excise tax on fuel as imposed, shall be suspended when the average Dubai crude based on Mean of Platts Singapore for three months prior to the scheduled increase of the month reaches or exceeds US$80 per barrel.

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 TRAIN.

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.

Under the TRAIN law, it states that the DOF "shall perform an annual review of the implementation of the excise tax on fuel and shall, based on projections provided and recommendations of the Development Budget Coordination Committee, as reconciled from the conditions as provided above, recommend the implementation or suspension of the excise tax on fuel provided that the recommendation shall be given on a yearly basis. Any suspension of the increase in excise tax shall

not result in any reduction of the excise tax being imposed at the time of the suspension." (PNA)

Source: Philippine News Agency

Related posts