DOF: Collection of P2/liter fuel excise tax suspended for 3 months
admin • October 24, 2018 • 3557
MANILA, Philippines —The collection of additional P2.00 per liter in petroleum products in 2019 under the Tax Reform for Acceleration and Inclusion (TRAIN) law will be suspended for at least three months.
Finance Undersecretary Karl Chua revealed this before the Senate Economic Affairs Committee hearing earlier.
The TRAIN law specifically states that the collection of excise tax on oil products will be automatically suspended when the price of imported crude oil reaches the 80 dollars per barrel level for three consecutive months.
“Yes at the very least, and we will base that on prevailing oil price,” said Chua.
But the group Laban Konsyumer opposed the said timeline.
“January to March of every year is the slowest in demand whether food or non-food. Talagang ang demand mababa. Ipapasok mo yung suspension ng excise taxes mapipi-feel ba ng mga mahihirap yung immediate impact,” said Laban Konsyumer president Vic Dimagiba.
Senate committee on economic affairs chairman Sherwin Gatchalian is also not convinced with the DOF’s target.
“We would like to request for a suspension of six months at least, dahil yung first three months adjustment period yan,” said Gatchalian.
But the DOF said that based on its computations, the government may potentially lose around P41.6 billion in revenues if the suspension will last for several months to a year.
This would also affect more programs and government services will suffer.
To counter this, the Department of Budget and Management plans to implement budget cuts, including the procurement of new vehicles and other travel expenses such as lakbay-aral.
The budget for fuel subsidy will also be reduced.
The DBM, however, assured the fund allocated in 2019 for the Pantawid Pamilyang Pilipinong Program will remain.
Bangko Sentral ng Pilipinas (BSP), meanwhile, estimates that the country’s inflation rate will be reduced to 4.1 percent in 2019.
Based on their studies, BSP sees a point-two percent decline if fuel excise taxes will be suspended; and point seven percent if the rice tarrification law will take effect next year.
“If the suspension is for the portion of the year, the impact on inflation would be correspondingly smaller,” said BSP Assistant Governor Francisco Dakila.
Senator Gatchalian, meanwhile, plans to ask the DOF not to trim down the amount of subsidies appropriated for jeepney drivers.
The Senate will also push for a joint resolution in support of Malacañang’s planned order of the suspension of 2nd tranche of excise tax for petroleum products in 2019. — Nel Maribojoc | UNTV News & Rescue
MANILA, Philippines – Senator Sherwin Gatchalian has called on the Department of Energy (DOE) to create a task force that will closely monitor the implementation of the new round of increases in excise tax on fuel.
Gatchalian made the call as the third and last tranche of tax hikes on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) law took effect on Wednesday, January 1, 2020.
He said that under the TRAIN Law, the estimated rate impact on pump price for unleaded premium gasoline would be around ₱1.01 per liter, while the estimated rate impact of the third tranche of the excise tax on diesel price is ₱1.65 per liter.
For 100 percent coal contracted power distribution utilities, the estimated rate impact is around ₱0.03 per kilowatt hour.
The senator said the creation of the task force is aimed to protect consumers from premature price increases and profiteering.
“Kailangan paigtinging mabuti ng Department of Energy (DOE) ang pagbabantay laban sa hoarding at profiteering sa bansa ngayong nakaamba ang dagdag na excise tax sa huling pagkakataon,” Gatchalian said in a statement.
“Huwag na nating hayaan ang ilang mapagsamantalang retailers na ibenta sa mataas na halaga ang kanilang mga lumang imbentaryong produkto, gayong nabili nila ito bago pa man maimplementa ang third tranche ng excise tax sa fuel,” he added.
Gatchalian noted that local oil companies maintain a minimum inventory equivalent to 15-day supply of petroleum products as provided under DOE’s Department Circular No. 2003-01-001 or the Implementing Guidelines for the Minimum Inventory Requirements of Petroleum of Oil Companies and Bulk Suppliers.
The DOE earlier said the new round of fuel tax hikes are only applicable to new stocks imported beginning January 1, 2020. It also advised oil firms to deplete old stocks before implementing new price schemes reflecting the new levies.
Gatchalian also called on the Department of Trade and Industry (DTI) to monitor the prices of goods in the market in order to ensure that unscrupulous businessmen will not take advantage and pass on the impact of higher oil prices to consumers as a result of the third tranche of the TRAIN law implementation.
“Mabigat na sa bulsa ng bawat isa ang pagpataw ng excise tax sa krudo. Sana naman ay huwag na natin dagdagan ang pasanin ng taong bayan sa pamamagitan ng hindi makatarungang pagtaas ng presyo ng mga pangunahing bilihin,” he said.
MANILA, Philippines — The Department of Transportation announced on Monday (December 30) on its official Facebook page that it has already distributed to more than 100,000 legitimate jeepney operators another round of fuel subsidy under the Pantawid Pasada Program (PPP).
Each operator received Php20,514.76, deposited to their Pantawid Pasada Cash card which they or their driver can use in purchasing fuel.
In total, the government has distributed more than Php2.2-Billion subsidy to jeepney operators nationwide.
The transport group, Pasang Masda, undermined the said government aid saying that such is not enough for the drivers and operators to recover from the effects of the additional excise tax on petroleum prices brought about by the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
Pasang Masda president Obet Martin said a driver spends between Php1,500 and 2,000 every day for diesel.
Although the group admitted that the PPP aid could be of help to their sector, its effect on their expenditures is very minimal.
“So ilang araw lang yun? 10 days lang yun. So pagkatapos nun nganga ang driver. Tulong rin ito pero pansamantala lang,” he said.
The group believes that the only solution for them to recover from the heavy effect of the excise tax on petroleum products is the implementation of a fare hike on jeepneys.
The group, along with other transport groups, plans to file their petition before the Land Transportation Franchising and Regulatory Board (LTFRB) in January 2020 which seeks to have the minimum jeepney fare raised to Php11.00.
The group clarified, however, that they are not opposed to the implementation of the TRAIN Law, as they see the benefits it brings to the government’s Build, Build, Build Program.
This early, the group seeks the commuting public’s understanding amid the impending filing of petition for a fare increase.
“Unawain nyo po ang aming katatayuan sapagkat kayo po ay inuunawa naming. Ayaw namin magtaas, subalit diktado ng pandaigdigang merkado yung pagtaas ng presyo ng petroleum products,” Martin said. (from the report of Joan Nano) /mbmf
MANILA, Philippines – The country’s headline inflation further eased to 0.8 percent in October, the Philippine Statistics Authority (PSA) reported on Tuesday.
The PSA said the latest inflation figure is lower than the 0.9 percent recorded in September, and a sharp slide compared to the 6.7 percent in October 2018.
October’s inflation rate is the slowest in more than three years, bringing the year-to-date inflation to 2.6 percent.
Inflation means the rate of increase in prices of goods and services.
National Statistician Dennis Mapa said the downtrend in the latest inflation was primarily due to the annual drop in the index of the heavily-weighted food and non-alcoholic beverages, as well as transportation costs.
Slower increases in rates of water, housing, gas, electricity, and other fuels were also noted, as well as in household equipment and routine maintenance, and health and restaurant and miscellaneous goods and services.
Mapa added that rice prices also maintained its year-on-year decline, with a 9.7 percent drop for the six-straight month, while transport expenses also settled lower compared to last year.
Data from the PSA also showed that inflation was higher in Metro Manila where prices of basic commodities increased by 1.3 percent. Prices in regions, meanwhile, moved slower in an average of 0.7 percent.
Malacañang welcomed the slower inflation rate but assured it will continue to monitor the prices of basic commodities especially during the holiday season.
“As inflation continues to drop, the current government will continue to not let its guard down in monitoring the prices of basic commodities, especially now that we are in the ber months, approaching Christmas season,” Presidential Spokesperson Salvador Panelo said in a statement.
The National Economic and Development Authority (NEDA) also welcomed the latest inflation rate, attributing it to the government’s drive and focus in its anti-inflationary efforts this year.
“We hope to further keep inflation manageable and within the government’s target,” NEDA Officer-in-Charge (OIC) and Undersecretary for Regional Development Adoracion Navarro said in a separate statement.
She, however, warned that the country must be in the lookout for upside risks such as cases of African Swine Fever (ASF), which have been observed so far in Rizal, Pangasinan, Bulacan, Nueva Ecija, Pampanga, Cavite, and Quezon City.
“The livestock industry in the said ASF-stricken areas, which accounts for 21.7 percent of the country’s total hog production last year, remains at high risk. The government and private companies must collaborate to manage, contain, and control the spread of the disease,” Navarro said.
She also urged meat processing plants to enforce more stringent bio-security measures, and expand and place quarantine checkpoints and disinfection facilities in key gateways such as seaports, airports, and expressways.
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