Philippines to Decide on Fuel Tax Suspension Next Week

FINANCE SECRETARY Frederick D. Go said he expects a decision by next week on the Development Budget Coordination Committee’s (DBCC) recommendation to suspend excise taxes on kerosene and liquefied petroleum gas (LPG). Asked when the decision would be released, Mr. Go said: “I definitely believe that by next week, it should be out already.” “It is for three months up to the end of the year,” he added. Malacañang said the Office of the President received the DBCC’s recommendation on Tuesday. “May rekomendasyon na po na ibinigay sa Pangulo. So, magkakaroon po ito ng pagpapasya nang mas mabilisan (The recommendation has reached the President, and a prompt decision is expected),” Palace Press Officer Clarissa A. Castro said at a briefing. Republic Act No. 12316 allows the President, upon the recommendation of the DBCC and in coordination with the Energy Secretary, to suspend or reduce excise taxes on petroleum products. Such measures are triggered when the one-month average Dubai crude oil price reaches or exceeds $80 per barrel. The Department of Energy last week certified that the 30-day average price of Dubai crude was $99.41 per barrel between Aug. 13 and Sept. 11, exceeding the threshold. President Ferdinand R. Marcos, Jr. suspended excise taxes on LPG and kerosene for three months in April via Executive Order No. 114, following an earlier DBCC recommendation. Asked about the suspension’s impact on revenue, Mr. Go said: “It is okay. We need to help the people, first and foremost. The reason why we chose LPG and kerosene is that these are the fuel products used by the most vulnerable households.” “They use that for cooking, and for all their daily needs. I think the most important thing, first and foremost, is to help ease the burden of high global oil prices on the most vulnerable sectors,” he added. Mr. Go said the government’s revenue targets remained within reach. Revenue collections rose 5.05% to P2.87 trillion in the first seven months. This was equivalent to 59.72% of the P4.807-trillion target for the year. — Justine Irish D. Tabile