Go signs reso to remove LPG, kerosene excise
MANILA, Philippines — Department of Finance (DOF) Secretary Frederick Go signed on Tuesday a resolution removing excise tax on liquefied petroleum gas (LPG) and kerosene.
Go announced in the middle of the DOF’s budget hearing of the Senate finance subcommittee, following Sen. Christopher “Bong” Go’s call to help ease fuel costs in the country as tensions in the Middle East continue.
“Kanina mga 15 minutes ago, pumirma ako dito, pinirmahan ko yung resolution to remove excise taxes on LPG and kerosene, which is very similar to what we did in the first round of the Middle East war,” Secretary Go told the panel.
(About 15 minutes ago, I signed here, I signed the resolution to remove excise taxes on LPG and kerosene, which is very similar to what we did in the first round of the Middle East war.)
He continued: “Matagal ko nang alam tumataas ang presyo ng langis, over 80 dollars sa barrel, kaya hinahanap ko po yung memo niyan. Kanina lang po umabot sa akin, pinirmahan ko agad-agad.”
(I’ve known for a long time that the price of oil is rising, over 80 dollars a barrel, so I’ve been looking for that memo. It just reached me a while ago, I signed it right away.)
READ: Marcos yet to decide on fuel excise tax suspension – Palace
Although Go did not disclose the parameters of the resolution he signed, under Republic Act No. 12316, President Ferdinand Marcos Jr. is authorized to suspend or reduce fuel excise tax if Dubai crude oil reaches $80 per barrel per month, but with the guidance of government agencies including DOF.
The suspension only lasts three months, extendable to up to one year upon the recommendation of the Department of Energy (DOE) and the DOF, among others.
In mid-April, Marcos suspended the excise tax on LPG and kerosene after global prices exceeded $80 per barrel.
On Sept. 15, the DOE announced that the threshold was already breached.
Upon the suspension of excise taxes, the price of a standard 11-kilogram LPG tank would be reduced by P37, while the price of a liter of kerosene would be P5.65 less. /cb
