SENATOR Grace Poe is poised to push the timely passage of remedial legislation in re-filing a bill to temporarily suspend oil excise tax in order to provide respite for overtaxed people.
In a statement, the senator affirmed her determination in refiling her bill to cushion the blow of fuel-price surges on the Filipino people.
Poe’s bill intends to amend Section 148 of the National Internal Revenue Code to provide for the automatic suspension of the excise tax on regular gasoline, unleaded premium gasoline and diesel when the average Dubai crude oil based on Mean of Platts Singapore for three months prior to the scheduled increase of the month reaches or exceeds $80 per barrel.
In prodding the Duterte government to suspend impending oil excise tax hikes, the senator anticipates “this will bring instant relief to the public as it will lower the prices of fuel products, resulting in the reduction of costs of goods and services.”
The senator added that an oil tax reprieve will also “provide a crucial lifeline to our people in daily survival mode.”
Poe pointed out that “the revenues the government will generate from the excise tax to fund cash aid might come too late for families who have nothing to eat now.” She reminded Malacañan that: “As the saying points out: ‘Aanhin pa ang damo, kung patay na ang kabayo?’”
Signaling she was not giving up, Poe affirmed the enabling bill will be among the pieces of legislation that she will file as soon as Congress convenes in July.
She stressed that local taxes add substantial costs to the already high prices of fuel in the world market. Pursuant to the Tax Reform for Acceleration and Inclusion (Train) law, the excise tax on regular and unleaded premium gasoline is currently set at P10 per liter of volume capacity. The excise tax on diesel is pegged at P6 per liter. A value-added tax of 12 percent is also imposed on the sale of gasoline and diesel.
The Senator reminded that suspension of the excise tax will immediately bring down costs by P10 per liter for gasoline and P6 per liter for diesel.
The authority granted under the Train law to suspend the collection of excise tax was transitory and covered only the years 2018 to 2020.
At the same time, oil companies announced another round of increase effective June 21, 2022, which could bring local fuel prices to P100 per liter.
“If the government is willing to spend billions in cash assistance to targeted beneficiaries, then it should also be ready to forego a portion of its revenues during the most critical times in order to save millions of lives,” Poe pointed out.
“We hope that this call on excise tax suspension, which is becoming louder by the day, will merit serious consideration from the incoming administration,” the senator added.
To help ease the impact of oil prices, Poe earlier prodded the Duterte government agencies to effectively implement a Civil Service Commission resolution allowing a flexible work arrangement for government employees without sacrificing prompt and quality public service.