Marcos certifies fuel excise tax bill
PRESIDENT Ferdinand R. Marcos, Jr. certified as urgent a measure allowing him to suspend or reduce excise taxes on petroleum products during national emergencies as the Philippines grapples with soaring fuel prices amid the Middle East war.
According to documents from the Office of the Executive Secretary, Mr. Marcos certified the “necessity of the immediate enactment” of House Bill No. 8418, which was approved on second reading on Wednesday.
“[This would] allow the government to respond promptly to extraordinary fuel price volatility and stabilize domestic fuel prices during the period of severe economic disruptions,” the letter, addressed to House Speaker Faustino G. Dy III and signed by Mr. Marcos, read.
The Middle East war, almost in its second week, pushed oil prices higher after Iran disrupted energy shipments from the Middle East passing through the Strait of Hormuz, a crucial chokepoint where about a fifth of global oil and gas supply passes through.
As a net oil importer, the Philippines remains highly vulnerable to sharp swings in global fuel prices.
The measure allows the President to suspend or reduce excise taxes on petroleum products if the average Dubai crude price, based on the Mean of Platts Singapore benchmark, reaches or exceeds $80 per barrel for the month preceding the issuance of such an order.
Under the 2017 Tax Reform for Acceleration and Inclusion law, the Philippines imposes an excise tax of P10 per liter on gasoline, P6 per liter on diesel and P5 per liter on kerosene.
Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan told lawmakers on March 10 that suspending fuel excise taxes could help curb the inflationary impact of rising global oil prices, warning that higher pump prices would feed through to the cost of nearly all goods and services, eroding Filipinos’ purchasing power and weighing on economic activity. — Chloe Mari A. Hufana
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