New excise tax on petroleum products effective January 1

admin   •   December 31, 2018   •   6024

 

 

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

 

DOE urged to create body to monitor new round of fuel tax hikes

Robie de Guzman   •   January 2, 2020

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.

Over 100,000 “Pantawid Pasada” fuel subsidy cards distributed to operators, drivers —DOTr

Maris Federez   •   December 30, 2019

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.

One of the more highly effective subvention plan of the government is the “Pantawid Pasada” fuel subsidy program for…

Posted by Department of Transportation – Philippines on Sunday, 29 December 2019

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

Bill imposing excise tax on single-use plastic bags hurdles House panel

Robie de Guzman   •   December 10, 2019

MANILA, Philippines – A bill seeking to impose an excise tax on every kilogram of single-use plastic bags has hurdled the House of Representatives’ Ways and Means Committee on Tuesday.

The measure proposes the imposition of a P20 levy for every kilogram of single-use plastics used in malls, supermarkets, stores, outlets and similar establishments.

The proposed amount is higher than the initial P10 amount of excise tax contained in House Bill 178.

The committee’s chairman, Albay Representative Joey Salceda said that once signed into law, the measure would generate a revenue of P4.8 billion on the first year of its implementation.

It also has a minimal impact of P0.07 on sando plastic bags.

Salceda said single-use plastic bags will be levied first because imposing tax on other type of plastic packaging, like sachet, might trigger increase in the price of basic commodities.

“It’s just the first step. The next step is a tax on primary plastic packaging especially sachet since it accounts for two-thirds of solid waste and garbage,” Salceda said.

“We deferred that due to possible food inflation and prices of basic commodities, shampoo, toothpaste. However, if poverty goes single digit, we will include it possibly in three to four years,” he added.

The lawmaker also believes the measure would encourage the public to recycle plastic bags to help counter plastic pollution in the country, and add more fund for the solid waste management program of local governments.

Philippine Amalgamated Supermarkets Association President Steven Cua, who attended the House hearing on Tuesday, agreed with Salceda’s statement.

“Walang kapalit ang plastic bag in terms of practicality. It’s the improper disposal that’s the problem, the mindset, which we have to correct,” he said.

In a 2015 report, the Philippines was listed as one of the biggest sources of plastic leaking into the oceans, after China and Indonesia.

A recent study by Global Alliance for Incinerator Alternatives (GAIA) revealed that Filipinos use more than 163 million plastic sachet packets, 48 million shopping bags and 45 million thin film bags daily. – RRD (with details from Correspondent Dante Amento)

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