Marcos suspends excise tax on LPG, kerosene

No word on diesel, gasoline; cool to VAT cut

MANILA, Philippines — President Marcos yesterday ordered the suspension of the excise tax on cooking gas used by most Filipino households, but was silent on the excise tax on diesel and gasoline.

At a hastily called press briefing at Malacañang, Marcos said the excise tax suspension would reduce the prices of liquefied petroleum gas (LPG) by P3.36 per kilo or about P37 per tank and kerosene by P5.65 per liter.

“That means the costs of cooking and everyday needs of each family will be lower,” the President said.

Marcos and his officials are set to discuss proposals to suspend or slash the excise tax on diesel and gasoline today.

“We will have another UPLIFT (Unified Package for Livelihoods, Industry, Food and Transport) meeting, again, to discuss what are the other strategies that we can employ to keep prices down, to make sure... that the supply, both of oil and the food products and all the other raw materials that we need (are sufficient),” he said. “It is very important that we watch the prices now.”

Last month, Marcos signed a law allowing him to suspend or reduce excise taxes on fuel products once Dubai crude oil price reaches or exceeds $80 per barrel for a month. Any suspension or reduction of petroleum excise taxes can last up to three months, but not more than a year in total. Taxes will automatically return to their original rates either a week after the month-long average Dubai crude oil price drops to below $80 per barrel, as certified by the energy department, or after three months – whichever comes first.

Suspend oil VAT?

Although the government will not collect excise tax on cooking gas temporarily, Marcos is cool to the proposal to suspend the value-added tax (VAT) on oil, saying the administration needs revenues to bankroll aid programs.

“The VAT on petroleum products, we are going to get a windfall profit from that because crude prices increased. And because of that, all the (imports) we will have at the present VAT rate... we will get extra funds from that,” the President said.

“If we take away the VAT on petroleum products, it will only help the petroleum market. What we need is funding to help the entire society,” the President said.

Marcos said the extra revenues would be used to provide subsidies and other cash benefits “to normalize people’s lives.”

“Right now, the balance, the cost-benefit analysis between the VAT collections and the benefit to people, to ordinary people, still favors that we collect VAT,” he added.

“We will still examine it. You know, like I keep telling you, hindi – there is nothing that we are not looking at as a possible option. We are looking at all the options.”

However, Marcos is not shutting down the possibility that the VAT on oil products would be reviewed.

“If the time (comes) that VAT should be brought down for whatever products, then we will certainly study it very well,” he said.

Presidential Communications Undersecretary Claire Castro noted that there is no law permitting Marcos to suspend the VAT on fuel.

“That is dependent on Congress,” she said at a press briefing hours before Marcos faced the media.

Hoarders warned

In a vlog posted on YouTube last Sunday, Marcos warned the public against hoarding diesel, saying only those with legitimate operational needs may store fuel, including fishermen, marine equipment operators, hospitals and generator set users.

“Do not place your neighbors at risk,” he said. “As we seek relief, let us not take advantage of others. Filipinos are not like that.”

Marcos also lauded companies and private citizens who provided assistance as the country grapples with the effects of the Middle East tensions.

“Many of them are not posting on social media. They just help. Thank you very much to you,” he added.

Meanwhile, the Philippine Coast Guard (PCG) announced the arrest at the Tabaco Port in Albay of a truck driver and his helper allegedly for engaging in the illegal trading and transport of petroleum products.

In its social media account, Coast Guard District Bicol (CGDBCL) reported that its personnel apprehended a 54-year-old driver and his 35-year-old helper, both residents of Barangay Mabini, Caramoran, Catanduanes, for misdeclaring the contents of their cargo. Their truck was found carrying approximately 5,400 liters of petroleum products.

“Initial investigation revealed that the cargo was declared as cement, sacks of rice and solar panels. However, upon actual inspection, it was later admitted that the truck was transporting petroleum products,” CGDBCL said.

The suspects were reportedly on their way to San Andres, Catanduanes when apprehended. — Evelyn Macairan