Bill authorizing president to lower, suspend VAT on fuel products during nat’l emergencies filed
Gas pumping station. INQUIRER FILE PHOTO
MANILA, Philippines — Senator Imee Marcos is seeking to grant the president the power to lower the rate or suspend the imposition of value-added tax (VAT) on petroleum products in times of a national emergency or state of calamity.
Under Senate Bill No. 2320 filed Wednesday, Marcos proposed that the president can lower or suspend VAT on fuel products for a period not exceeding one year to help consumers during national emergencies.
This proposal amends Sections 106 and 107 of the National Internal Revenue Code.
“The higher cost of goods and services that are, in part, due to the uptick of fuel prices, are expectedly passed on to the ordinary consumer who may still be unemployed but has no choice but to deal with the rising prices of everyday essential commodities,” she said in the bill.
“In view of the current economic and employment situation of the country resulting from the COVID-19 pandemic, there is a need to give some relief to the ordinary Filipino and ensure that they are able to survive and recover during this pandemic,” she added.
Marcos also said that to ensure fiscal sustainability on the part of the government, excise taxes imposed on petroleum products will be retained.
