New excise tax on petroleum products effective January 1

admin   •   December 31, 2018   •   6863

 

 

MANILA, Philippines — Despite the rollback on petroleum products, there will be a new excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

As stated in the law, there will be a P2.24 per liter price hike on gasoline and diesel; P1.12 per liter increase on kerosone; and P1.12 per kilo on LPG.

However, the Department of Energy has reminded all oil companies that they need to consume their petroleum stocks in 2018 before the implementation of the excise tax.

The Department of Energy (DOE) has been monitoring the oil stocks of oil companies since September to ensure that these will not be set with the excise tax in 2019.

Oil companies need to declare in a signage if they are already implementing the excise tax.

“Inuubos muna nila ang mga old inventories bago mag impose ng new excise tax. Ibig sabihin kapag meron ng new excise tax dapat yung mga gasoline stations din may naka-post silang tarpaulin na nagsasabi na ang binebenta nilang petroleum products as of the moment ay may new excise tax na,” said Oil Industry Bureau Assistant Director Rodela Romero.

The second tranche of excise tax was approved during the price drop of petroleum products in world market.

In 2018, there are more price increase compared to price rollback in diesel and gasoline.

A consumer group believes that poor Filipinos will not be able to bear the new tranche of excise tax on petroleum products in 2019.

For those who can pay the excise tax such as businessmen, the excise tax can be regain through the price hike of prime commodities which will further burden poor Filipinos.

“Ang aming pagtutol dito hindi ito equitable at ito’y hindi progressive taxation sa madaling salita anti-poor po,” said Laban Konsyumer Group President Vic Dimagiba.

The consumer group appeals to the the new Congress to check TRAIN Law after elections.

“Mayroong eleksyon, may bagong Kongreso. Magandang balikan ng bagong kongreso itong TRAIN law. Itong bago ‘di natin alam, puwede nilang repasuin ang TRAIN law para hindi ito anti-poor,” said Dimagiba. — Joan Nano | UNTV News & Rescue

 

House aims to pass bill on oil excise tax reduction before session break

Maris Federez   •   November 26, 2021

MANILA, Philippines — Before the session breaks in December, the leadership in the House of Representatives is determined to approve the proposed legislation that seeks to reduce excise taxes imposed on petroleum products.

House Deputy Majority Leader Representative Jesus ‘Bong’ Suntay said they also expect the Senate to do the same.

“I’m sure mapapasa namin yan before December on the part of the House. Pero ang mga kasamahan natin, mga senador natin, want to give it as a Christmas gift to Filipinos who have been hit hard by the pandemic,” Suntay said.

In the House version of the consolidated bill, the solons are pushing for a zero excise tax to be imposed on gasoline, diesel, and liquefied petroleum gas (LPG) for six months.

Excise tax on low octane gasoline used in tricycles, on the other hand, will be reduced to Php 4.35 per liter.

Suntay said the House leadership is determined to approve this the soonest time possible, noting that it is not only the transport sector who is being affected by the high price of petroleum products but the general public as well.

“Hindi naman yung transport sector who carries the burden of this additional excise tax. Lahat ng tao hindi lang public utility vehicle driver o jeepney drivers ang tinamaan, kundi lahat ng tao tinamaan ng pandemya. I believe kailangang naman na ibalik natin, di ba?” Suntay explained.

He further clarified that the Lower House is not seeking for the suspension of the excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) Law but to just cut a small percentage of the tax imposed by the said law. —/mbmf (from the report of UNTV Correspondent Nel Maribojoc)

Proposed suspension of fuel excise tax filed in Lower House

Maris Federez   •   October 29, 2021

MANILA, Philippines — A bill proposing the suspension of the imposition of excise tax on petroleum products has been filed before the House of Representatives (HOR), Deputy Speaker Cagayan De Oro City Representative Rufus Rodriguez announced Friday (October 29).

The move is brought about by the continuous increases in the price of fuel products.

House Bill 10246 filed by Deputy Speaker Rodriguez sought to amend Section 43 of the Tax Reform Acceleration and Inclusion (TRAIN) Law.

It will particularly order the suspension of the collection of adjustments in excise taxes that will be applied on gasoline, diesel, and other petroleum products from 2022 to 2025.

Rodriguez clarified that his proposed bill is not a move to scrap the imposition of excise taxes as a whole.

The lawmaker said that the weekly increases in the price of fuel will only burden the economy that is just beginning to slowly open to welcome employees to go back to work.

On Thursday’s briefing by the Department of Finance before the House Committee on Energy, the agency said the country will lose around Php131.4 billion should the suspension of excise tax will be approved.

Conversely, the Department of Energy has called on Congress to approve the said suspension. —/mbmf (from the report of UNTV Correspondent Nel Maribojoc)

Transport groups defer petition for fare hike

Maris Federez   •   October 22, 2021

MANILA, Philippines — Transport groups have announced that they will defer their petition for a P3.00 fare hike.

This was after the House Committee on Transportation convened with the group and the Department of Transportation (DOTr) to discuss the said petition seeking an increase in the minimum fare in jeepneys from P9.00 to P12.00.

Pasang Masda President Obet Martin said they have put off their request following the promise from the lawmakers and the DOTr of providing cash subsidy for the transport groups.

“Hindi na namin maitutuloy […] pero naka-pending lang. Naka-file lang kase nakapag-usap na kami sa Congress. […] Nagkasundo na kami tungkol doon sa cash subsidy at tsaka sa fuel subsidy na winu-workout ng DOTr sa mga companies,” Martin said.

He added that their group, the DOTr and the House committee came to an agreement to create a program that will assist the drivers and operators in coming up with measures to alleviate difficulties brought by the increasing prices of petroleum products.

“Ang LTFRB naman gagawa naman sila ng cash subsidy in a form of pasada card. Kami natutuwa na roon. Pag naayos na lahat yan we will withdraw the said petition dahil bibigyan ng subsidy yan as allowance o pasada card malaking tulong na sa amin yun,” Martin said.

In 2018, the government distributed fuel vouchers to jeepney operators and drivers following the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

Under the law, legitimate transport operators and drivers receive Php5,000 to Php20,000 fuel subsidies.

Meanwhile, transports groups also appealed to the Land Transportation Franchising and Regulatory Board (LTFRB) to increase the operation of public utility vehicles to 100 percent capacity.—/mbmf (from the report of UNTV Correspondent Janice Ingente)

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