MANILA, Philippines — The Department of Finance (DOF) is targeting to fully implement by January 2020 the fuel marking program, a measure which is expected to address oil smuggling in the country and to generate P20 billion in additional revenues by next year.
During the Senate finance committee’s hearing on Wednesday, Finance Undersecretary Antonette Tionko said the fuel marking program is already in its initial phase of implementation, with pilot tests already conducted to check the effectivity and safety of the markers.
“Our plan is for the complete implementation by January,” Tionko told Sen. Franklin Drilon when asked about the fuel marking program.
According to Tionko, the team in charge of the program is now working with big refineries to determine how to install the equipment that will enable the injection of markers in large volumes of fuel.
She said the measure is expected to capture at least half of the estimated revenues lost due to oil smuggling in the Philippines.
“We’re hoping to collect at least, by next year, P20 billion, which is half of the estimated amount of the smuggled revenue,” Tionko said.
The fuel marking program is part of the Tax Reform for Acceleration and Inclusion (TRAIN) Law. Under the program, petroleum products for domestic consumption with proof of payment of taxes will be injected with fuel markers.
Finance Secretary Carlos Dominguez earlier said the fuel marking program is expected to help curb the worsening incidence of oil smuggling in the country.
In July this year, the DOF, together with the Bureau of Customs (BOC) and Bureau of Internal Revenue, issued Joint Circular 1-2019, which prescribes the implementing guidelines for the measure.
The BOC in August conducted the first live marking of petroleum products at the Seaoil bulk terminal in Mabini, Batangas.
Customs assistant commissioner Vincent Philip Maronilla said the event marks the “soft rollout” of the government’s fuel marking program.