MANILA – Suspending higher excise taxes on fuel will restrict funding for government projects, including free tuition and a salary increase for state workers, a finance official said Monday.
It will also be hard for the government to suspend duties on fuel since the revenue and budget assumptions for the year have been set, said Finance undersecretary Paola Alvarez.
“We cannot just suspend it because we will have a hard time funding the [free tuition for] state colleges and universities, and increase in salary of government personnel,” Alvarez told reporters.
Alvarez said the government had enough programs in place to protect the poor from rising consumer prices, including unconditional cash transfers.
A fuel subsidy program for jeepney drivers may also be revived, presidential spokesperson Harry Roque said.
At least one measure is pending at the Senate, seeking a rollback of fuel taxes should inflation breach the government’s target.
Consumer prices rose 4.5 percent in April, compared to the government’s 2 to 4 percent target. Economic managers had said that new taxes were not entirely to blame.
Aside from fuel, the government also raised duties on sugar-sweetened drinks and cars to help offset a reduction in personal income tax rates and fund the government’s infrastructure program.
Roque said President Rodrigo Duterte ordered the labor department to convene regional wage boards to see if there is a need to raise the minimum wage due to rising prices.
Duterte also ordered the trade department to monitor prices of basic goods and go after profiteers, he said.
The energy department was tasked to look for cheaper fuel imports, including Russia, he said. (ABS-CBN News)
