Poe files bill to suspend collection of excise tax on gasoline and diesel

Sen. Grace Poe has filed Senate Bill 2445 that seeks to suspend the collection of excise taxes on gasoline and diesel if the average price of Dubai crude oil hits $80 per barrel for three consecutive months.

The suspension of the excise tax will immediately bring down the cost by P10 per liter for gasoline and P6 per liter for diesel.

"The rising cost of fuel is certain to have a spillover effect on the cost of other products, especially food which accounts for a big chunk of a household's expenses. Such will aggravate poverty and hunger among our people. If government cannot substantially provide for its people, then at the very least, it must do all it can to ease their burden," Poe stressed.

The Philippine Statistics Authority reported last week that food inflation dropped in October to 5.3 percent but fuel inflation rocketed to 32.9 percent from September's 21.3 percent and was among the highest reported this year.

Poe's bill proposes to amend section 148 of the National Internal Revenue Code by allowing the suspension of excise taxes on regular gasoline, unleaded premium gasoline, and diesel.

The Tax Reform for Acceleration and Inclusion (TRAIN) law allowed for the suspension of the scheduled increase in the excise tax on fuel when the three-month average Dubai crude oil prices based on the Mean of Platts Singapore hits $80 per barrel or more. The suspension, however, is only for the years 2018 to 2020. The TRAIN law also requires the Department of Finance (DOF) to conduct an annual review of the implementation of the excise tax on fuel based on projections and recommendations of the Development Budget and Coordination Committee but it also requires that the suspension should not result in any reduction of the excise tax being imposed at the time.

The DOF had said government stands to lose P131 billion from the suspension of the excise tax on gasoline and diesel, P24.7 billion of which represents its projected foregone revenue from the tax and P106.7 billion in incremental revenues.

The administration had pushed for the lowering of income taxes for companies under the CREATE law, under which foregone revenues are estimated at P251 billion in the first two years.

"If the government can afford P251 billion for big companies, why can't it do the same for jeepney drivers, delivery riders and everybody else who have to go to work and are forced to bring their own vehicles because there's not enough public transportation," Poe asked.

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[FILIPINO TRANSLATION]

Poe, pinasususpinde ang koleksyon ng excise tax sa gasolina, diesel

Inihain ni Sen. Grace Poe ang Senate Bill 2445 na naglalayong suspindihin ang koleksyon ng excise taxes sa gasolina at diesel kung aabot ang average price ng Dubai crude oil sa $80 kada bariles sa loob ng tatlong magkakasunod na buwan.

Kung maisasagawa ito, bababa agad ng P10 ang presyo kada litro ng gasolina at P6 kada litro ng diesel.

"Tiyak na magkakaroon ng epekto ang pagtaas ng presyo ng petrolyo sa halaga ng ilang mga produkto, lalo na sa pagkain na siyang pinakamalaking pinagkakagastusan ng isang pamilya. Lalo lamang nitong palalalain ang kahirapan at gutom ng ating mga kababayan. Kung hindi kayang magbigay ng pamahalaan ng sapat na ayuda sa mga mamamayan, magawa man lang nitong ibsan ang kanilang kalbaryo," giit ni Poe.

Sa ulat ng Philippine Statistics Authority nitong nakaraang linggo, bagaman bumagsak ang food inflation sa 5.3 porsyento nitong Oktubre, tumaas naman ang fuel inflation ng 32.9 porsyento mula sa 21.3 porsyento noong Setyembre na isa sa pinakamataas na naiulat ngayong taon.

Sa ilalim ng panukala ni Poe, isinusulong ang pag-amyenda sa section 148 ng National Internal Revenue Code sa pagsuspinde sa excise taxes sa mga regular na gasolina, unleaded premium gasoline at diesel.

Nakasaad sa Tax Reform for Acceleration and Inclusion (TRAIN) law na pinapayagan ang suspensyon ng nakaiskedyul na pagtaas ng excise tax sa petrolyo kapag pumalo ang tatlong buwang average ng Dubai crude oil prices na base sa Mean of Platts Singapore sa $80 kada bariles o higit pa. Ngunit ang suspensyon ay para lamang sa taong 2018 hanggang 2020.

Nakapaloob din sa TRAIN law na kailangan ng Department of Finance (DOF) na magsagawa ng taunang pag-aaral sa implementasyon ng excise tax sa petrolyo base sa pagtaya at rekomendasyon ng Development Budget Coordination Committee ngunit kailangan din na ang suspensyon ay hindi magresulta sa pagkaltas sa excise tax na ipinatutupad sa naturang panahon.

Ayon sa DOF, maaaring mawalan ang pamahalaan ng P131 bilyon sa suspensyon ng excise tax sa gasolina at diesel, P24.7 bilyon ang kumakatawan sa mawawalang kita sa buwis at P106.7 bilyon naman sa incremental revenues.

Isinulong ng administrasyon ang pagpapababa sa income taxes ng mga kumpanya sa ilalim ng CREATE law, kung saan tinatayang ang mawawalang kita ay aabot sa P251 bilyon sa unang dalawang taon.

"Kung kaya ng pamahalaang mawalan ng P251 bilyon para sa mga malalaking kumpanya, bakit hindi ito kayang gawin para sa mga jeepney driver, delivery rider, at iba pa na kailangang pumasok sa trabaho at napupuwersang magdala ng sariling sasakyan dahil hindi sapat ang pampublikong transportasyon?" tanong ni Poe.