MANILA, Philippines - Various companies have expressed support for a proposal to bring back a fuel marking and monitoring scheme to fight oil smuggling and plug tax leakages.
In a recent hearing of the House ways and means committee, representatives of Dow Chemical Philippines Inc., SICPA-Global Fluids International, Authentix Inc. and United Color Manufacturing Inc. all agreed on the need to adopt a fuel marking scheme to complement a proposed increase in fuel excise tax under the Comprehensive Tax Reform Program (CTRP).
Dow Philippines country manager Roberto Batungbacal said the fuel marking scheme would not only help curb smuggling, but also ensure that oil products sold in the market are of high quality, safe, regulated and compliant with environmental standards.
“We recommend that the government develop a comprehensive fuel marking strategy for imported and locally produced fuel throughout the Philippines. We need to leverage best practices from governments that have successfully implemented fuel markings in their countries,” Batungbacal said.
SICPA-GFI managing director Gadi Gonen also said the fuel marking is essential in fighting oil smuggling.
He also cited the fuel marking scheme SICPA-GFI implemented in Tanzania, which raised about $142 million in additional revenues for the country.
Ramon Lacdan, local manager of United Color and Joel Fischl, managing director of Authentix, also agreed on the role of fuel marking in raising a government’s tax revenue.
The adoption of a fuel marking system in the Philippines is one of the provisions of the first package of the CTRP, also filed as House Bill 4774 by Rep. Dakila Cua.
The proposal aims to securely and covertly authenticate petroleum products, prevent oil smuggling, and improve collection efforts of the Bureau of Internal Revenue and Bureau of Customs.