Press Release
July 13, 2021


Senator Imee Marcos has called for a one-year suspension of the value-added tax (VAT) on oil products amid lingering economic difficulties due to the Covid-19 pandemic.

Marcos, who chairs the Senate committee on economic affairs, noted on Tuesday another price hike by oil companies that reached per liter increases of Php1.15 for gasoline, Php0.60 for diesel, and Php0.65 for kerosene.

Since January, fuel prices per liter have already increased by Php13 for gasoline, Php10 for diesel, and Php9 for kerosene, Marcos said.

Marcos said suspending the 12% VAT on oil products will provide relief to various consumers other than just motorists.

"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," Marcos explained.

The 12% VAT on fuel products was applied by the government in addition to the excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) law.

President Duterte signed the law imposing excise taxes of Php2.50 per liter of diesel and Php7 per liter for gasoline in December 2017.

(Tagalog version)


Isinusulong ni Senadora Imee R. Marcos, chairperson ng Senate committee on Economic Affairs, na dapat suspendihin muna ng isang taon ang ipinapataw na Value Added Tax (VAT) sa oil products sa gitna ng nararanasang krisis dulot ng Covid-19 pandemic sa bansa.

Nitong Martes, nagpatupad na naman ang oil companies ng price hike na umabot sa P1.15/liter sa gasoline, P.60/liter sa diesel at P.65/liter sa kerosene.

Mula Enero 2021, sinabi ni Marcos na pumalo na sa P13 per liter ang itinaas ng gasolina; P10/liter sa diesel at P9/ liter sa kerosene.

"May domino effect ang oil price hike sa mga produktong agrikultura at iba pang essentials. Ipapasa lang ang dagdag na presyo ng langis sa mga consumer na kawawa na nga, walang trabaho, tumataas pa ang halaga ng pagkain, kuryente at mga bilihin," pahayag pa ni Marcos.

Kung pansamantalang masuspindi ang 12% VAT sa langis, sinabi ni Marcos na malaking ginhawa ito sa mga motorista at mga konsyumer.

Nagpatupad ang pamahalaan ng dagdag na 12% VAT sa fuel products bukod pa ito sa excise tax na ipinataw sa ilalim ng Tax Reform for Acceleration and Inclusion (TRAIN) law.

Noong December 2017, nilagdaan ni Pang. Duterte ang batas na nagpapataw ng excise tax sa diesel sa halagang P2.50/liter at P7.00/ liter sa gasoline.

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