As the prices of oil products continue to increase almost weekly, Malacanang has the power to suspend the collection of excise tax on oil products.
But Malacanang is not moving after the Department of Finance rejected calls for such reductionsm, Senate Minority Leader Franklin M. Drilon said during a DWIZ radio interview.
Drilon recalled that under the Tax Reform for Acceleration and Inclusion (TRAIN) law that Congress passed, there will be basis for the suspension of the collection of excise tax on oil products when the price of oil hits $80 per barrel.
‘’Kaya hindi na kailangan ng batas. Ang kailangan ng batas ay kung ibababa mo yung $80 (So there is no need for a law. A law is needed when you reduce the $80 per barrel ceiling),’’ he explained.
The Senate official stressed that Malacanang has the power to suspend the collection of excise tax to give relief to our countrymen.
‘’Ang problema po nasa executive (The problem is with the Executive branch). Kaya may sapat na kapangyarihan ang Malacanang para bigyan ng relief ang ating mga kababayan (Malacanang has enough powers to give relief to our countrymen),’’ he added.
Earlier, Senator Grace Poe urged Malacañang to consider temporarily suspending the collection of excise tax on gasoline and diesel to ease the burden of rising oil prices on jeepney drivers, delivery riders and those transporting farmers’ harvests to the market.
“Domestic oil prices have been increasing for eight consecutive weeks. The government can alleviate this heavy burden by suspending the collection of the excise tax for now,” Poe said.
“Suspending the excise tax on fuel meantime will help stave off hunger, assist PUV drivers and delivery riders, and bring down the cost of transporting goods,” Poe said.
If we can lower the income taxes of companies that rake in millions in earnings, temporarily suspending the collection of excise taxes on fuel products should not be that difficult, she added.