The suspension of the second round of excise tax on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) law was timely and much needed, Senator Sherwin Gatchalian said on Friday.
In a memorandum signed November 8, Malacañang has notified the administration’s economic managers that their proposal to suspend the scheduled P2 increase in excise tax next year had been approved.
READ: Palace confirms suspension of oil excise tax hike
Gatchalian said he supports this move.
“Kahit pa bumaba ang presyo ng petrolyo sa nakaraang mga araw at inaasahan na patuloy pa itong bababa sa susunod na taon, sinusuportahan ko ang suspension ng fuel excise tax to give the people a reprieve from the effects of the high inflation rates we had the past few months,” he said in a statement.
“Indeed, the suspension of the second round of the excise tax on petroleum products is very timely and will help everyone, especially the bottom 30 percent income families,” he added.
This year, the fuel excise tax increased by P2.50 per liter and it is scheduled to rise by P2 and P1.50 per liter in 2019 and 2020, respectively, for a total P6 excise tax hike in three years.
The senator also said the suspension would give “breathing room” to small business owners and entrepreneurs and allow those among them who borrowed to recover and pay off their debts.
Gatchalian, who had suggested a six-month suspension of fuel excise tax, said he awaits the recommendation of the Department of Finance as to how long the suspension would be. /muf
READ: Gatchalian pushes for 6-month suspension of fuel excise tax