Articles worth reading
Photo courtesy of: K R De Asis/MPIO

Manila recognizes medical workers on Bonifacio Day 

account_balanceManila access_time5 days ago

The city government of Manila paid tribute to medical workers during the celebration of Andres Bonifacio’s 158th birth anniversary at Liwasang Bonifacio on Tuesday, according to a report by Philippine News Agency. The city again called me...

LGUs have power over mandatory vaccination

account_balanceMetro Manila access_time5 days ago

Local government units (LGUs) have the authority to impose mandatory inoculation against Covid-19 and eliminate hesitancy and brand preference, according to a report by Philippine News Agency. Department of the Interior and Local Government (DI...

Return of face shield policy opposed

account_balanceMetro Manila access_time5 days ago

A leader of the House of Representatives on Tuesday said the government should implement strict border control measures instead of re-imposing the mandatory wearing of face shields to directly address the spread of the new Omicron variant of Covid-19...

Metro News

Senator Imee Marcos

Imee Marcos porposes suspension of VAT, excise tax on oil products 

account_balanceMetro News account_circleJake Cruz chat_bubble_outline0 Comments

Senator Imee Marcos on Thursday suggested to the Department of Energy (DOE) the suspension of value added tax (VAT) and excise tax on oil products for public utility vehicles (PUVs), in lieu of a subsidy program that will cushion the impact of the recent oil price hikes, according to a report by GMA News.

During a Senate budget hearing, Marcos asked the DOE to consider her suggestion, considering the effects of the COVID-19 pandemic to the public transportation sector.

“In lieu of subsiding fuel cost… and mindful of the revenue effects of the wholesale suspension of VAT and excise taxes of petroleum products, is the DOE open to suspending VAT for the meantime and excise tax kahit PUVs lang instead of the entire subsidy program?” Marcos asked.

Energy Secretary Alfonso Cusi said the DOE has yet to consider the suspension of VAT in their computations and explained that any tax suspension requires a corresponding legislation.

“Is DOE open to suspension of VAT? That one, I must say, I did not consider that in the computation and what I asked is the excise tax to be suspended, but all of these things, whether excise tax or VAT, I believe it  requires legislative action,” Cusi said.

At the early part of the hearing, Marcos said the suspension of excise taxes no longer requires an amendment or crafting of a law.

“Certainly, this is a mere suspension there is no amendment of the excise tax,” she noted.

Nevertheless, Marcos pushed the idea of tax suspension on fuels, but only for PUVs.

“Perhaps the suspension merely on PUVs could be a great help and we thank you for your support and your concern,” she ended.

On Wednesday, Cusi said the DOE is discussing with the Department of Finance (DOF) “the possibility to suspend excise tax for the meantime.”

However, he said this cannot be done through an executive order by the President, thus a new legislation is needed.

The Energy chief estimated that suspending excise tax can lower pump prices by around P8 to P10 per liter.

The Tax Reform for Acceleration and Inclusion (TRAIN) law increased excise tax on fuel in three tranches from 2018 to 2020, bringing the total duties to P10 per liter for gasoline, P6 per liter for diesel, and P5 per liter for kerosene at present.

Similarly, the TRAIN law has a provision of suspending the scheduled increase in the excise tax when the average Dubai crude oil for three months prior to the scheduled increase reaches $80 per barrel.

This provision, however, has already lapsed following the effectivity of the last tranche of excise tax increase in 2020.

With this, Cusi suggested amending the Oil Deregulation Law, which will include an authority for the department to suspend fuel excise tax.

As early as July, Marcos has been calling on the government to impose a one-year suspension of the 12% VAT on oil products as the country continues to grapple with the effects of COVID-19.

She formalized this by filing Senate Bill 2320 which seeks to give the President the power to lower the rates or suspend the imposition of VAT on petroleum products for one year during national emergencies of state of calamities.

date_rangeDate Published
1 month ago
shareShare article
folder_openArticle tags
content_copyCategorized under

Share your thoughts with us

Related Articles

Valenzuela opens new sites for booster jabs

account_balanceValenzuela chrome_reader_mode3 hours ago

Two schools in Valenzuela City have been set up as vaccination sites to accommodate recipients of the coronavirus disease 2019 (COVID-19) booster shots, the local government announced on Dec. 5, according to a report by Manila Bulletin. Fully-vaccin...

Photo courtesy of: PHLPost

Post Office launches new generation of postcards

account_balanceMetro Manila chrome_reader_mode6 days ago

Postmaster General and CEO Norman Fulgencio of the Philippine Postal Corporation (Post Office), together with Secretary Michael Dino of the Office of the Presidential Assistant for the Visayas (OPAV) and Undersecretary Debold Sinas of the Office of t...

Enderun launches mobile app 

account_balanceCaloocan chrome_reader_mode3 days ago

Enderun Colleges recently introduced the Enderun app, an exclusive mobile phone app that offers students, faculty, employees, and alumni a new way to stay connected. The Enderun app revolutionises student life by introducing a fun and engaging way to...

DOJ indicts 17 policemen over March operations

account_balanceMetro Manila chrome_reader_mode3 days ago

The Philippine National Police (PNP) on Thursday said it will fully cooperate with state prosecutors in the proceedings against the 17 police officers implicated in the so-called "Bloody Sunday" operations that resulted in the death of six ...

Let's Stay Connected Like us on our Facebook page.
Click on the article to continue reading
Quezon City adopts no contact apprehension system Red Cross pushes saliva test Vaccines from COVAX to arrive in Q1 Makati Shangri-La to close doors on Feb. 1 Cities in NCR to start vaccination simultaneously Mother, girlfriend of Filipino infected with UK variant also test positive Send Press Release MNC Facebook Page MNC Twitter Page MNC Instagram Page LGU Spotlight Barangay Front Business Sports Entertainment Metro Gen Metro Feature