President Rodrigo Duterte has already approved the recommendation of his economic managers to temporarily suspend the impending P2 increase in oil excise tax next year, Budget Secretary Ben Diokno said on Wednesday.
“I just got a communication from the Executive Secretary saying that our proposal to temporarily suspend the additional oil excise tax next year has been approved,” Diokno said in a press briefing.
Diokno added that he has already asked for a copy of the order to temporarily suspend the oil excise tax increase scheduled next year under the tax reform law.
The proposal stemmed from the recommendation of economic managers to suspend the scheduled increase in oil excise taxes to help alleviate the soaring prices of commodities.
Fuel excise taxes increased by P2.5 per liter this year, and the levy is scheduled to rise by P2 and P1.5 per liter in 2019 and 2020, respectively, for a total P6 excise tax hike for three years.
Calls for the suspension of excise tax on fuel products piled up as inflation hits a new nine-year high in September. /muf