Solon urges DOE to probe ‘premature’ oil price hike
A lawmaker called on the Department of Energy (DOE) on Thursday to look into the reported “premature” implementation of new tax on oil products even before the Tax Reform for Acceleration and Inclusion (TRAIN) Law takes effect.
Anakpawis Party-list Rep. Ariel Casilao said that the TRAIN Law, together with the Oil Deregulation Law, would only allow oil companies to profiteering from jacked up prices.
“Sa kumbinasyon ng TRAIN [Law] at Oil Deregulation Law, lalong magsasamantala ang mga kumpanya ng langis at gagawing dahilan ang mga ito para magtaas ng kanilang mga produktong petroloyo,” Casilao said in a statement.
(Oil companies will take advantage of TRAIN Law and Oil Deregulation Law and will use this as a reason to increase the prices of petroleum products.)
“Even before implementation on the new tax on oil, oil companies already make windfall profits courtesy of the Oil Deregulation Law,” he added.
The Department of Finance said the excise tax should be imposed on new inventories and not old stocks, and doing the contrary is tantamount to profiteering.
“This is because the excise is paid at the port of importation or refinery. Oil [price] increase done by the companies [purportedly due to the excise tax] on Jan. 1 might be considered profiteering,” the DOF said in a statement.
READ: Fuel prices to go up on Jan. 2, despite gov’t warning
Casilao said that the savings from the exemption of personal income tax for the 7.5 million employees earning P250,000 annually would only be dwarfed by the additional tax on oil, which, in turn, increases the prices of goods and services.
“This is the immediate effect of the Duterte government’s TRAIN. There’s no happy in the new year as the new tax law will be implemented,” Casilao said.
“The TRAIN wreck effect will be felt and it doesn’t look good for the majority of the working people both in the rural and urban communities,” he added.
Casilao also criticized Communications Secretary Martin Andanar for giving an “insensitive” advice to motorists to fill up gas earlier before the new tax on oil products kicks in.
“Palibhasa ‘di mararamdaman ang negatibong epekto ng mataas na buwis sa langis, kahit sa mga middle class, mahirap ipatanggap ang pagtaas ng buwis,” the lawmaker said.
(Lucky he does not feel the negative effect of the oil price hike. Even to the middle class, it is hard to accept the tax increase.) /je
