Senators hailed on Thursday the suspension of a further increase in excise taxes on petroleum products amid the soaring price of crude in the world market.
Budget Secretary Benjamin Diokno announced on Wednesday that President Rodrigo Duterte has approved the suspension of the increase in oil excise taxes next year.
READ: Diokno: Duterte approves temporary suspension of oil excise tax increase
In October, members of the Senate also wrote a letter to the President to suspend additional increase in oil excise tax.
READ: 17 senators ask Duterte to support suspension of excise tax on fuel
“We commend President Rodrigo Duterte and his economic managers for staying sensitive to the plight of our people and adjusting with the times. This is the right decision given the high price of oil worldwide,” Senator Sonny Angara said in a statement.
As chair of the Senate committee on ways and means, Angara led the discussion of the Tax Reform for Acceleration and Inclusion (TRAIN) bill, which was later enacted into law.
Republic Act 10963 or the TRAIN law provides a safeguard mechanism wherein the scheduled increase in excise taxes on petroleum products should be suspended once the average price of crude oil in Dubai for three months reaches or exceeds US$80 per barrel.
READ: Minority senators call for suspension, rollback of excise tax on fuel
According to Angara, the crude oil prices in Dubai have already reached US$84.41 per barrel in the first week of October.
Senator Bam Aquino, a staunch critic of TRAIN law, also thanked the President and his economic managers for the move.
“Nagpapasalamat tayo sa Presidente at sa kanyang economic managers sa pag-aksyon sa isyu na matagal nang daing ng mga pamilyang nahihirapan sa taas ng presyo ng bilihin,” he said in a statement.
(We thank the President and his economic managers for taking action in the issue that has long been the concern of families suffering from the high prices of goods.)
He said he hopes the move is an indication that the government will also suspend all other excise tax on fuel under the tax reform program.
Senate Minority Leader Franklin Drilon, meanwhile, said he is glad that the economic managers have “finally” acted on calls to suspend further excise taxes in petroleum products.
“It’s a welcome move and it is the right thing to do, particularly in the light of the unabated increases in the prices of basic commodities and transportation cost,” he said.
For Senator JV Ejercito, the decision proves that the government “listens to the people.”
“The suspension, which was provided for in the TRAIN law, will help soften the impact of high inflation rate on Filipino families. And it should stay until the situation normalizes as promised by our economic managers,” Ejercito said in a text message to reporters. /je