House bill pushes for 4-year suspension of excise tax increase on oil products
MANILA, Philippines — A bill filed in the House of Representatives seeks to suspend the collection of the increase in excise taxes on gasoline, diesel, and other oil products for four years.
Under House Bill No. 10246 filed by Deputy Speaker and Cagayan de Oro City Rep. Rufus Rodriguez, the collection of excise tax increases as provided for by Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law shall be suspended from January 1, 2022, to December 31, 2025.
“As such, the excise tax on fuel products from January 1, 2022, until December 31, 2025, will be collected based on the rates provided for in the National Internal Revenue Code before it was amended by Republic Act 10963,” the bill states.
Rodriguez said that once the adjustments are suspended, the old rates that would apply would be P4.35 and P5.35 per liter on regular gasoline and unleaded gasoline instead of the present P10, while diesel, kerosene, and liquefied petroleum gas would not be imposed any excise tax.
This, in turn, will result in a decrease in the prices of consumer goods and services, Rodriguez said.
“One way to help the Filipino people is to temporarily suspend the collection of the increase in excise taxes on oil products imposed under the TRAIN Law until the country has fully recovered from the COVID-19 pandemic,” Rodriguez said.
Several lawmakers have called for the temporary suspension of excise tax on oil products to aid drivers affected by the increase in the price of fuel.
The Department of Finance (DOF), however, has expressed its disapproval, citing a massive loss in revenue for the country.
For now, the government said it will give away cash grants totaling P1 billion to at least 178,000 registered drivers of public utility vehicles to help ease the impact of a continuing increase in oil prices.
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