Marcos calls for 1-year suspension of 12% VAT on petroleum products | Inquirer News

Marcos calls for 1-year suspension of 12% VAT on petroleum products

/ 04:50 PM July 13, 2021
Sen. Imee Marcos called for a one-year suspension of the 12-percent VAT on oil products amid price hikes during the COVID-19 pandemic. 

Sen. Imee Marcos during one of the hybrid meetings at the Senate. Screen grab / Senate PRIB file photo

MANILA, Philippines — Senator Imee Marcos on Tuesday called for a one-year suspension of the 12-percent value-added tax (VAT) on petroleum products in view of price increases during the COVID-19 pandemic.

The proposed suspension on tax for oil will “provide relief to various consumers other than just motorists,” Marcos, chair of the Senate economic affairs committee, said in a statement.

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“Oil price hikes have a domino effect on agricultural products and other essentials. The higher costs will be passed on to the ordinary consumer who may still not have a job but has no choice but to deal with rising prices of food, electricity, and other goods,” she added.

Marcos cited the recent price hike imposed by oil companies that reached increases of P1.15 for gasoline, P0.60 for diesel, and P0.65 for kerosene per liter.

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Since January, the senator also said that fuel prices per liter have already increased by P13 for gasoline, P10 for diesel, and P9 for kerosene.

National Statistician Dennis Mapa earlier said that normalizing global oil prices pose upside risks in the second half of the year and would likely keep overall price hikes above the central bank’s target.

The government applied the 12 percent VAT on fuel products, this is in addition to the excise tax under the Tax Reform for Acceleration and Inclusion law.

President Rodrigo Duterte signed the law imposing excise taxes of P2.50 per liter of diesel and P7 per liter for gasoline in December 2017.  Faith Yuen Wei Ragasa, INQUIRER trainee

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Marcos wants DOE to suspend oil price hikes due to pandemic, calamities 

With successive oil price hikes, Bayan Muna presses Cusi to focus on work, get out of politics 

JPV

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TAGS: 12 percent VAT, 12% VAT on oil, COVID-19, diesel, economic difficulties, Fuel, gasoline, Imee Marcos, kerosene, Nation, News, oil products, pandemic, Senator Imee Marcos, TRAIN law, value added tax, VAT
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