Isko Moreno asks Congress to consider 50% fuel tax cut amid rising world oil prices
Aksyon Demokratiko standard bearer and Manila City Mayor Isko Moreno Domagoso is appealing to Congress to consider his proposal for a 50 percent cut on fuel excise tax amid the continuing increase in world oil prices that are expected to worsen with the ongoing political crisis between Russia and Ukraine.
“Kung may panahon pa sa Kongreso nananawagan din tayo na yung pino-propose natin na 50% tax cuts sa krudo at 50% tax cuts sa kuryente, kumbaga magpalugi muna tayo bilang gobyerno sa pagkalap ng buwis pero siya namang maibabalik natin na savings sa bawat pamilyang Pilipino. But for now, I can only suggest wala naman tayo sa posisyon na bigyan ng direktiba yung ating mga mambabatas,” Moreno told reporters on Monday.
Moreno made the remark as he and Vice Mayor Honey Lacuna led the final inspection of food boxes containing locally manufactured rice, coffee, and assorted canned goods at the San Andres Gymnasium in Malate before distribution to the beneficiaries composed of 700,000 families living in Manila’s six districts.
Moreno, if elected president, is committed to cut the excise tax on petroleum products by 50 percent as this would directly benefit not only poor people but also the middle class who have been at the receiving end of the unabated price increases of crude oil brought about by the conflict in Ukraine.
In October last year, Moreno had dialogs with farmers and fisherfolks in Tarlac City and it was during this “Listening Tour” that the Manila city mayor first bared his plan to cut down by 50 percent taxes on fuel and electricity to help tide over those badly affected by the pandemic.
In November 2021, Albay Rep. Jose Ma. Clemente S. Salceda, who chairs the House Committee on Ways and Means, filed House Bill 10438 which calls for the lowering the excise tax on fuel products for six months including zero tax for diesel, with the revenue to be foregone by the government estimated at more than P55 billion.
Article continues after this advertisementThe measure, if signed into law, would exempt diesel and kerosene from excise tax and would reduce the charge on gasoline to P7 per liter (/L) from P10/L. The excise rate was set by the Tax Reform for Acceleration and Inclusion (TRAIN) Law and is enforce between Dec. 1, 2021 and June 1, 2022.
Article continues after this advertisementRepublic Act No. 10963 or the TRAIN Law raised excise tax on fuel in three tranches from 2018 to 2020. These rates are now at P10/L for gasoline, P6/L for diesel, P5/L for kerosene, and P3/L for liquefied petroleum gas.
On top of the fuel tax cut, Moreno is also planning another 50 percent tax break on electricity as this will be beneficial not only to consumers of electricity but also to owners of business enterprises since this would mean additional savings (translated as income) for all.
“To cushion the socio-economic impact of the pandemic, a 50 percent reduction in fuel excise tax can lower the power generation cost and another 50-percent cut on taxes on electricity would mean savings for the majority of our people, many of whom are jobless now due to the Covid-19 pandemic,” said Moreno.
Moreno pointed out that positive effects of the tax cut on fuel will be immediately felt by operators and drivers of PUVs who are now demanding for a fare adjustment because of the rising cost of fuel.
In the same manner, Moreno said that a 50 percent tax cut on electricity would mean more food on the table and more money to spend on basic needs, including medicines.
“We cannot bring down the cost of power generation but the end-users or the consumers, can be made to pay lower electricity bills. How? Bawasan natin ang buwis sa kuryente ng 50 porsyento. Mababawasan ang kita ng gobyerno pero ang tao ang panalo dahil sa malaking pera na kanilang matitipid,” said Moreno.
Moreno noted that any oil price hike has a domino effect on the daily expenses of every Filipino, from transportation to food, and from electricity to other basic necessities. “The impact on the lives of Filipinos will be so difficult in the coming months. It is time the government steps backward, sacrifice some revenues, just to alleviate people’s sufferings,” he said.
Moreno explained that oil prices impact not only the cost of transportation but also food and other necessities. “Since we are not an oil-producing country, we import our oil requirements, and even our electricity is powered by oil, coal, and other sources which are affected by petroleum prices.”
“Ngayon dito sa isang sulok ng bansa yung ating mga kababayan maramdaman nila na meron silang gobyernong masasandalan sa oras ng pangangailangan. So, I’m happy for them at least sana maging masaya rin sila. Makapagbigay man lang ng ngiti sa ating kapwa ngayong hirap ng buhay na ito,” Moreno said.
Team Isko is in Tarlac province today for a whole day sortie that will culminate in a Grand Volunteers Rally in Tarlac City at 6 pm. More than 5,000 volunteers and supporters of the Aksyon Demokratiko national candidates are expected to attend the event.
This is the second time that Moreno and his Aksyon Demokratiko slate will be visiting Tarlac province. Joining Moreno and his running mate Doc Willie Ong are Aksyon Demokratiko senatorial bets Dr. Carl Balita, Samira Gutoc and Jopet Sison along with guest candidate John Castriciones of PDP-Laban.
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