MANILA – President Rodrigo Duterte will suspend the implementation of the second tranche of fuel excise tax under the Tax Reform for Acceleration and Inclusion Act, government officials said.
According to Special Assistant to the President Christopher “Bong” Go, the deferment aims “to arrest the rising price of oil and its effects on the inflation rate.”
“Meron pong pinirmahan ang ating Pangulo at effective po ito sa January po – iyong suspension ng excise tax P2 po mula Enero,” he said in an event in Taguig City on Sunday.
Go clarified that the suspension, which was in response to Senate resolution, will be only for the second tranche. The first tranche imposed earlier this year stays.
“Ina-anticipate lang po natin, sakaling hindi po mapigilan iyong (pagtaas ng) presyo ng crude oil sa market. The President is very concerned talaga dito sa pagtataas ng presyo ng langis,” he added.
Finance assistant secretary Antonio Joselito “Tony” Lambino II confirmed the development in a separate statement, saying the implementation is on hold until further notice.
“As announced by Bong Go, the President is making an early announcement of the temporary suspension of the January 2019 oil excise increase under the TRAIN law,” Lambino said.
Opposition lawmakers both in the Senate and the House of Representatives earlier filed separate resolutions calling for the suspension of the fuel tax hike.
Under the TRAIN law, excise tax on fuel would be increased from 2018 to 2020 but it allows the suspension of the increase if the average price of Dubai crude oil exceeds $80 per barrel.
Since the TRAIN law was implemented on Jan. 1 this year, gasoline prices increased by as much as P10.50 per liter, diesel prices by P12, and kerosene by P14.12./PN
