Excise tax on fuel products ‘should be scrapped entirely’

A motorcycle driver pulls into a gas station to have his fuel tank refilled in Metro Manila. ABS-CBN NEWS

MANILA – Marikina City representative Miro Quimbo stressed that excise taxes imposed by the Tax Reform for Acceleration and Inclusion (TRAIN) Law on some fuel products should still be scrapped in its entirety.

Quimbo made the remark following the decision of Malacañang to approve the economic managers’ recommendation to suspend the second round of increase in excise tax rates of petroleum scheduled for 2019.

“While we welcome that, that is not enough kasi ang kailangan nating gawin ay entirely tanggalin natin ang tax sa diesel at kerosene at ibalik ang sitwasyon bago ipinasa ang TRAIN, meaning walang excise tax ang diesel at kerosene,” Quimbo told Super Radyo dzBB in an interview.

Quimbo in September filed HouseBl 8171 seeking to repeal the excise tax imposed on kerosene and diesel under the TRAIN Law, and automatically suspend those on all other petroleum products.

The bill seeks to provide immediate solution to the accelerating inflation brought about by price hikes on products affected by the TRAIN Law by imposing no excise tax on kerosene and diesel, two products on which the poor highly depend.

Despite the suspension of the second tranche of excise tax increase on fuel products, Quimbo said he would still push for the consideration and approval of the bill he filed.

“Bagamat nagkaroon ng pagbaba ang presyo ng langis worldwide, hindi pa rin natin maiaalis na ang pagkakaroon ng panibagong tax na in-impose ng TRAIN 1 sa gasolina, ang tinamaan talaga ay mahihirap lalong-lalo na sa usapin ng gasolina, diesel at kerosene,” he said.

Under the TRAIN Law, a P2.50-per liter excise tax increase on diesel will be imposed. The law would also increase the levy on gasoline to P7.00 per liter.

At the same time, the law also provides that starting 2019, excise taxes for diesel will be hiked by a total of P4.50 and those of gasoline by P9.00 under the second tranche.

The increase, however, could be temporarily suspended should the average price of Dubai crude reach or exceed $80 per barrel for three months.

“Hindi ito nagbabago. It remains anti-poor even if bumababa ang halaga ng gasolina. The fact na may ini-impose tayo na buwis, ang karamihan na nagbabayad diyan ay mahihirap. Kaya kailangan siyang alisin,” Quimbo said.

Aside from repealing excise tax on kerosene and diesel, Quimbo’s bill also seeks to automatically suspend the excise taxes on all other petroleum products imposed under the TRAIN Law when the inflation rate for a given quarter exceeds the quarterly inflation target of the government.

Opposition lawmakers from the Magnificent 7 and Makabayan Bloc also filed a joint resolution for the same which, however, is still pending with the House Committee on Ways and Means. (GMA News/PN)

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