By Genalyn Kabiling
The nation can expect a respite from higher fuel tax rate increase next year following a suspension order authorized by President Duterte.
The President has formally approved the suspension of the next round of excise tax increase on oil products under the Tax Reform for Acceleration and Inclusion (TRAIN) law amid efforts to tame the country's high inflation.
MISSION AT THE SUMMIT – At the ASEAN-China summit in Singapore, President Duterte wants to focus on finalizing the Code of Conduct for the South China Sea. (Reuters)
The latest tax relief measure was upon the recommendation of the President’s economic team led by Finance Secretary Carlos Dominguez.
"With reference to your Memorandum dated 11 October 2018, please be informed of the APPROVAL of your recommendation to suspend the next scheduled increase in the excise tax on fuel, subject to Section 43 of Republic Act No. 10963 or the ‘Tax Reform for Acceleration and Inclusion Law,’” the memorandum read.
The memorandum was addressed to Dominguez, Budget Secretary Benjamin Diokno and National Economic and Development Authority head Ernesto Pernia, and Energy Secretary Alfonso Cusi.
The memorandum was signed by Executive Secretary Salvador Medialdea by authority of the President last November 8. The document was released to the media Wednesday.
Malacañang earlier announced that it was considering the suspension of the additional P2 levy on fuel products scheduled in January 2019 under the tax reform law even at the risk of losing P40 billion in revenues.
The TRAIN law, signed by President Duterte, allows the government to suspend the next round of increase in fuel excise tax if the three-month average of Dubai crude hits $80 per barrel.
The latest move was considered amid government's move to curb inflation which remained at 6.7 percent last month. The high oil prices were among the factors reportedly contributing to the increase in consumer goods.