Fuel excise tax suspension comes with tradeoffs, says senator
MANILA, Philippines — As government weighs a measure to cushion the impact of soaring oil prices, Sen. Win Gatchalian warned that suspending excise taxes on fuel will come with tradeoffs.
President Ferdinand Marcos Jr. has asked Congress to grant him emergency powers to suspend excise tax on petroleum products as tensions in the Middle East push global fuel prices higher.
Gatchalian, chair of the Senate Committee on Finance, said the policy must not derail government services.
"The reality is that there will be a tradeoff. But we should not sacrifice government support for social services, education and health," Gatchalian said.
The Department of Finance earlier warned that suspending the excise tax could cost the government P136 billion in revenues if implemented from May to December.
Gatchalian has asked the Department of Budget and Management (DBM) to identify programs or expenditures that could be scaled back to cover the revenue shortfall.
"The DBM should identify specific areas where the government can scrimp," he said.
Possible savings, he added, could include less travel by government personnel, as well as lower fuel and electricity consumption as some agencies begin implementing a four-day workweek.
Aid for farmers, fisherfolk. Gatchalian also called for the timely release of fuel subsidies for farmers and fisherfolk—sectors expected to be heavily affected by rising fuel costs and food prices.
The Department of Agriculture has allocated P75 million for fuel assistance to farmers and another P75 million for fisherfolk through the Bureau of Fisheries and Aquatic Resources.
"A timely release of the subsidy would provide immediate financial relief to the country's most vulnerable sectors amid expectations of higher operational costs," Gatchalian said.
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