A deputy minority leader on Monday called anew to the leadership of the House of Representatives to expedite the approval of the bill that suspends the excise tax on petroleum products for six months when congressional sessions resume this month.
House Deputy Minority Leader Carlos Isagani Zarate of Bayan Muna, in a news statement, said oil companies will greet consumers this 2022 with a big time oil price increase with gasoline at P1.90 to P2 per liter, diesel at P2.20 to P2.30 per liter and kerosene at P1.80 to P1.90 per liter.
“This will be added on top of the net increase in 2021 for gasoline at P17.65/liter, diesel at P14.30 per liter and kerosene at P11.54 per liter,” said Zarate.
“This pending consolidated bill is, in fact, already a watered down version to fast track its approval, but, it seems Duterte’s economic managers are blocking efforts to at least ease the burden of consumers, especially now that a new round of oil price hikes is to be implemented,” Zarate said.
The bill is still pending on second reading in the lower chamber.
According to Zarate, lawmakers’ original proposal is the complete scrapping of the excise tax on oil products from the TRAIN law (Republic Act 10963 or the Tax Reform for Acceleration and Inclusion), but, “in the spirit of critical collaboration and to expedite the approval of the consolidated bill we agreed for at least a six month suspension of the excise taxes on oil.”
The bill aims to reduce excise taxes on diesel, kerosene, and liquefied petroleum gas to zero.
Under the bill, excise taxes on low-octane gasoline, used primarily by tricycle drivers, will also be reduced to P4.35 from the current P7, while taxes on premium gasoline will be retained at P10.
This proposal will cost the government around P45 billion.
“The suspension of the excise tax on oil products would be a welcome reprieve for struggling public transportation drivers and operators, farmers, fisherfolk and consumers from the still continuing oil price hikes. Though we maintain our strategic position to repeal the anti-people provisions of the TRAIN law, the speedy approval of this urgent bill is a step at the right direction and reflects the true and dire situation of our people on the ground, who are still coping with the pandemic-aggravated crisis,” said Zarate.
“The bill will effectively place most fuel prices to pre-TRAIN law levels, specifically for regular gasoline, diesel, LPG and kerosene, oil products mostly used by consumers. As proposed, the excise taxes for these products will be zero, except for regular and premium gasoline, for six months once the law becomes effective,” he said.
Also, Zarate urged Malacañang to certify the bill as urgent to expedite its passage by both houses of Congress.