Metro Manila News
Imee Marcos porposes suspension of VAT, excise tax on oil products
Senator Imee Marcos on Thursday suggested to the Department of Energy (DOE) the suspension of value added tax (VAT) and excise tax on oil products for public utility vehicles (PUVs), in lieu of a subsidy program that will cushion the impact of the recent oil price hikes, according to a report by GMA News.
During a Senate budget hearing, Marcos asked the DOE to consider her suggestion, considering the effects of the COVID-19 pandemic to the public transportation sector.
“In lieu of subsiding fuel cost… and mindful of the revenue effects of the wholesale suspension of VAT and excise taxes of petroleum products, is the DOE open to suspending VAT for the meantime and excise tax kahit PUVs lang instead of the entire subsidy program?” Marcos asked.
Energy Secretary Alfonso Cusi said the DOE has yet to consider the suspension of VAT in their computations and explained that any tax suspension requires a corresponding legislation.
“Is DOE open to suspension of VAT? That one, I must say, I did not consider that in the computation and what I asked is the excise tax to be suspended, but all of these things, whether excise tax or VAT, I believe it requires legislative action,” Cusi said.
At the early part of the hearing, Marcos said the suspension of excise taxes no longer requires an amendment or crafting of a law.
“Certainly, this is a mere suspension there is no amendment of the excise tax,” she noted.
Nevertheless, Marcos pushed the idea of tax suspension on fuels, but only for PUVs.
“Perhaps the suspension merely on PUVs could be a great help and we thank you for your support and your concern,” she ended.
On Wednesday, Cusi said the DOE is discussing with the Department of Finance (DOF) “the possibility to suspend excise tax for the meantime.”
However, he said this cannot be done through an executive order by the President, thus a new legislation is needed.
The Energy chief estimated that suspending excise tax can lower pump prices by around P8 to P10 per liter.
The Tax Reform for Acceleration and Inclusion (TRAIN) law increased excise tax on fuel in three tranches from 2018 to 2020, bringing the total duties to P10 per liter for gasoline, P6 per liter for diesel, and P5 per liter for kerosene at present.
Similarly, the TRAIN law has a provision of suspending the scheduled increase in the excise tax when the average Dubai crude oil for three months prior to the scheduled increase reaches $80 per barrel.
This provision, however, has already lapsed following the effectivity of the last tranche of excise tax increase in 2020.
With this, Cusi suggested amending the Oil Deregulation Law, which will include an authority for the department to suspend fuel excise tax.
As early as July, Marcos has been calling on the government to impose a one-year suspension of the 12% VAT on oil products as the country continues to grapple with the effects of COVID-19.
She formalized this by filing Senate Bill 2320 which seeks to give the President the power to lower the rates or suspend the imposition of VAT on petroleum products for one year during national emergencies of state of calamities.
A number of Tulong Panghanapbuhay sa Ating Displaced/Disadvantaged Workers (TUPAD) beneficiaries received their financial aid on Tuesday, Nov. 30, after rendering work in San Juan City as as a way of helping them earn a living amid the ongoing COVID-...
An official of the National Task Force (NTF) Against Covid-19 on Thursday urged the unvaccinated Filipinos to be inoculated against Covid-19 in the next national vaccination days from Dec. 15 to 17, according to a report by Philippine News Agenc...
Energy Development Corporation (EDC), the world’s largest vertically integrated geothermal energy company, announced today it is leveraging weather forecast data from IBM’s The Weather Company (TWC) to help make better decisions for the o...
The country's fight against the dreaded coronavirus disease 2019 (Covid-19) and the threat of the newly discovered Omicron variant received a boost with the arrival of 547,100 more doses of AstraZeneca vaccines donated by Poland, according t...
The Quezon City government has thanked healthcare workers and constituents as figures of coronavirus disease 2019 (Covid-19) indicators in the city hit an all-time low, according to a report by Philippine News Agency. In a Facebook post on Wedn...
Construction of the 19 stations of the Philippine National Railways (PNR) Calamba is set to begin in 2022, according to a report by Philippine News Agency. During a site visit at the PNR Balagtas Station, Department of Transportation Unde...