Suspend excise taxes on fuel? Presidential bets drop their thoughts
MANILA, Philippines — Excise taxes on fuel, as part of the Duterte administration's tax reform law in 2018, caught headlines again as oil prices surged in past weeks due in part to Russia's invasion of Ukraine.
The budget department said cutting excise tax collections would mean the government losing P103 billion in revenues.
Here's what presidential candidates had to say on whether they were in favor of suspending such levies or not. Ferdinand "Bongbong" Marcos Jr., who frequently skips presidential forums, did not join the first debate sponsored by Comelec on Saturday.
Vice President Leni Robredo was not able to give her thoughts on the matter, which was just a quick follow-up question to candidates. Other bets were also not able to respond.
Manila City Mayor Isko Moreno
The Aksyon Demokratiko standard-bearer homed in on the Marcoses' unpaid estate taxes of about P203 billion, which he believed could offset foregone revenues from suspending fuel taxes.
"Yes, if I could collect the P203 billion estate tax from one family and I cut the taxes on fuel and electricity at 50%, we will lose P65 billion. Minus that, I still have lots on funds that we could return to the people," he said.
"It's a matter of fiscal management and certainty of law," Moreno added.
Ka Leody de Guzman
The labor leader was in favor of suspending excise tax collections but offered a radical solution: taxing the ultra-rich.
"So that consumers could be saved from oil price increases. Outside that, we should impose taxes on the wealthy so that the national coffers will be larger," he said.
"I also agree that we should go after that P203 billion," de Guzman quipped.
Sen. Ping Lacson
Lacson chimed in by offering the temporary suspension of excise taxes.
"For me, this should be temporary. The savings will come down to P10 in gasoline prices, P6 for crude oil, P5 for diesel and P3 for kerosene. Even if it's just for three months," he said.
"Let's raise the threshold from $80 per barrel, let's make it $90 per barrel. It seems that the Department of Finance thinks excise taxes would be permanently suspended. The foregone revenues won't be as large as they anticipate," Lacson added.
Jose Montemayor
The lawyer and doctor made a passionate plea on why he's batting for the suspension of excise taxes.
"I don't know why we're having a hard time giving in to the pleas of poor Filipinos. They're just looking for a reprieve of P210 billion when the government gave foreign taxpayers relief from the CREATE law, from 30% to 25%," he said. "I'm in favor of suspending it temporarily for the public's welfare."
Sen. Manny Pacquiao
Pacquiao offered pros and cons if the government suspends excise taxes amid rising oil prices.
"If we remove it, benefits abound. If not, the income from excise tax collection should be used to subsidize our motorists," he said.
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