Fuel tax cut under review

The government is reviewing the conditions for a possible reduction or suspension of excise taxes on fuel, Malacañang said, as global oil prices remain volatile.

President Ferdinand Marcos Jr. earlier stressed that the proposal involves a “very complicated calculation,” requiring a careful assessment of multiple factors before any decision is made.

Palace Press Officer Claire Castro explained that the President can only exercise the power to suspend or reduce fuel excise taxes if the average price of Dubai crude oil exceeds USD80 per barrel for at least 30 consecutive days.

“Nasabi ng Pangulo iyan dahil ayon sa naaprubahan na bill, ang Pangulo ay makakakilos at makakapagdesisyon lamang ayon sa recommendation ng DBCC (The President said that because under the approved bill, the President can only act and decide based on the recommendation of the Development Budget Coordination Committee),” she said.

She was referring to a measure from the House of Representatives of the Philippines authorizing the President, upon the recommendation of the Development Budget Coordination Committee and in coordination with the energy secretary, to suspend or reduce excise taxes on fuel under specific conditions.

Castro noted that while Dubai crude prices have already breached USD100 per barrel, the level has yet to be sustained for a full month.

“Ayon nga kay DOF (Secretary Frederick) Go, wala pang 30 days sa ngayon. Pero, ngayon pa lamang ay inaaral na ang kondisyon sa pag-reduce or pag-suspend the excise tax on fuel (According to DOF Secretary Go, it has not yet reached 30 days as of now. However, the conditions for reducing or suspending excise tax on fuel are being studied as early as now),” she said.

She added that excise taxes apply only upon the importation of oil, underscoring that no imports mean no excise tax to collect.

“Kung walang maaangkat, wala tayong mapag-uusapang excise tax. Pero kapag naisabatas naman po yan, asahan ang mabilis na aksyon para maibaba ang presyo ng fuel (If there are no imports, then there is no excise tax to discuss. But once this measure becomes law, you can expect swift action to bring down fuel prices),” Castro said.

The President earlier assured the public that the government is closely monitoring developments and stands ready to act once conditions warrant intervention.