MANILA Amid the rising prices of basic goods and services, a lawmaker at the House of Representatives on Monday filed a bill seeking to reduce to zero the excise taxes on kerosene and diesel being implemented under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Marikina Rep. Romero Quimbo filed House Bill No. 8171, which also provides for the automatic suspension of fuel excise taxes when the inflation rate for a given quarter exceeds the government's target.
Upon suspension, excise taxes on fuel will revert to their pre-TRAIN levels and may only be re-imposed if the inflation rate in any succeeding quarter falls below the corresponding quarterly inflation target.
We recorded an inflation of 5.7% in July, with August inflation expected to be at around the same level. Clearly steps have to be taken to bring relief to our people and shield them from future spikes in inflation, Quimbo said.
In his explanatory note, Quimbo said the increase in excise taxes in petroleum products have resulted in higher prices for goods and services, which rely on the consumption of fuel for their production, operation, or distribution.
"Further increases under TRAIN in the said products on January 1, 2019 and January 1, 2020 are expected to once again drive up inflation and put a strain on the finances of Filipino households," Quimbo said.
"Through this measure, relief will finally be provided to Filipinos who have for months endured the unabated rise in prices. A mechanism will also be put in place to shield (Filipinos) from further hardship due to unforeseen spikes in inflation," he added. (PNA)
Source: Philippine News Agency