The excise tax on oil cannot be suspended because the government will lose P138.8 billion or the equivalent of 0.6 percent of gross domestic product.
Department of Finance Assistant Secretary Paola Alvarez made the statement amid calls by various government sectors to suspend the excise tax and VAT on petroleum products to alleviate the people’s ordeal.
Oil prices are rising almost weekly due to the ongoing war between Ukraine and Russia.
“So diyan po sa usapin na iyan, iyong posisyon po kasi natin, hindi po tayo sang-ayon sa pagsuspinde ng excise taxes. Kasi po malaki po ang mawawala sa ating kaban o sa ating pera sa Treasury ‘pag ginawa po natin iyan,” said Alvarez.
He said it would be better to give help to the poor.
“Ang pinu-propose po natin, imbes po na suspendehin natin overall, magbigay po tayo ng targeted support doon sa mga mahihirap na nangangailangan,” said Alvarez.
He said the government would lose up to P48.7 billion if it follows the House’s proposal to suspend the excise tax on petroleum products from June to November.
DOF opposes suspension of fuel excise tax
If the Senate’s proposal to suspend the excise tax on petroleum products from June to December is followed, up to P69.3 billion will be lost to the public coffers.
Alvarez explained that the excise tax is essential to fund government programs and provide assistance to drivers.
Oil companies predicted on Monday that this week’s hike in pump prices would be the largest of the year.
Caltex, Petron, Seaoil, Unioil, Petro Gazz, Flying V, Clean Fuel, and PTT issued separate advisories on Monday, stating that the price rise for diesel would be P13.15 per liter, P7.10 per liter for gasoline, and P10.50 per liter for kerosene, all effective at midnight Tuesday. This might push local gasoline and diesel prices up to P84 and P94, respectively.
Motorists will now pay P31 more for a liter of diesel, P20 more for a liter of gasoline, and P25 more for a liter of kerosene than last year. This month, LPG prices increased by P7.95 per kilo.
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