Palace confirms suspension of oil excise tax hike
Malacañang Palace confirmed on Wednesday that President Rodrigo Duterte had approved the proposed suspension of the second round of oil excise tax increase.
The Palace released to media a copy of a memorandum notifying the administration’s economic managers that their proposal had been approved.
Signed by Executive Secretary Salvador Medialdea on Nov. 8, the memorandum was addressed to Finance Secretary Carlos Dominguez, Budget Secretary Benjamin Diokno, and Socioeconimic Planning Secretary Ernesto Pernia.
“With reference to your Memorandum dated 11 October 2018, please be informed of the APPROVAL of your recommendation to suspend the next scheduled increase in the excise tax on fuel, subject to Section 43 of Republic Act No. 10963, or the Tax Reform for Accelaration and Inclusion Law,” the memorandum said.
The Palace released the memorandum after Diokno said that President Rodrigo Duterte had already approved their recommendation to suspend the impending P2 increase in fuel excise tax in 2019.
The administration’s economic managers recommended the suspension to help tame the soaring prices of commodities after inflation clocked in at a new nine-year high last September.
Fuel excise taxes increased by P2.50 per liter this year, and the levy is scheduled to rise by P2 and P1.50 per liter in 2019 and 2020, respectively, for a total P6 excise tax hike for three years. /atm
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