Senator Sherwin Gatchalian wants the additional P2 excise tax on fuel to be suspended for six months, instead of only three months next year.
“My recommendation is for a six-month suspension,” Gatchalian told reporters on Wednesday after the hearing of the Senate committee on economic affairs, joint with the committee on ways and means.
The panels are looking into the impact on inflation of the government’s decision to suspend the additional excise tax scheduled in January 2019.
“At least we have the three months suspension right now, but my recommendation will be a six-month suspension to accommodate adjustments,” the senator said.
“And I think based on the trend (of) oil futures, a six-month suspension will be a good time-frame para mag-normalize ‘yung presyo,” he added.
During the hearing, Finance Undersecretary Karl Kendrick Chua said the government is looking at the possibility of suspending the excise tax for just three months.
“The Secretary has opined if the suspension is based on three months, then the resumption could also probably be based on a three-month cycle. But that’s his opinion and we’re still reviewing and discussing,” Chua said, apparently referring to DOF Secretary Carlos Dominguez III.
“So were looking at, at the very least three months suspension?” Gatchalian asked.
“Yes, at the very least, and we will base that on the prevailing oil price,” Chua said.
READ: DOF: Fuel excise tax hike may be suspended for 3 months next year
In the interview, Gatchalian said the Senate and the House of Representatives may approve a joint resolution to push for the suspension of the additional tax on fuel next year.
In a letter dated October 9, 17 senators appealed to President Rodrigo Duterte to support the suspension of “any further increases in excise taxes on diesel, gasoline, and other petroleum products as provided for under the “Tax Reform for Acceleration and Inclusion” or Train Law.
“I think mas matibay kung mayroon joint resolution because naumpisahan na ng Senado through a letter to suspend,” the senator said.
“I think mas magandang next move would be a joint resolution from both (the Senate and the House) para ma-suspend ito,” he added. /kga
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