One of the largest agricultural groups in the country has joined the snowballing campaign to appeal to President Rodrigo Duterte to suspend the excise tax on petroleum products as fuel cost continued to soar, thus seriously affecting all areas in the agriculture sector.
Samahang Industriya ng Agrikultura (SINAG) president and ABONO Partylist chairman Rosendo So led 33 agricultural organizations in issuing the strong appeal to Duterte.
This developed as the Lower House Committee on Energy launched Thursday, Oct. 28 its study on the Department of Energy proposal to grant it authority to suspend excise taxes on fuel under certain circumstances.
So said the unabated spikes in oil prices have seriously impacted rice, corn and vegetable farmers, together with hog and poultry raisers and fishermen.
“Since Congress is suspended and given that the country remains under a state of emergency because of the COVID-19 pandemic, the President can issue an order similar to what he did last year when he signed two EOs that reduced import taxes on chilled and fresh pork meat and raised the minimum access volume for pork imports to address the supply shortage and soaring prices,” said So.
He added: “This will be a win-win solution for agricultural producers, transport groups, and consumers.” The agriculture sector leader aired the beliefe that suspension of government collection of excise taxes on fuel could bring down pump prices by around P6 to 10 per liter.
Petroleum rates have gone up for the ninth consecutive week, for a total year-to-date adjustment of at least P19.65 per liter for gasoline, P18 per liter for diesel, and P15.49 per liter for kerosene.
As a result of the rising cost of fuel, prices of corn feeds have increased by P1 to P7 per kilo.
“Corn feed prices have already increased from P14 to P15 per kilo to P21 per kilo because of the hefty increases in fuel prices,” So said.
The SINAG official said other sub-sectors in agriculture are also facing the same crisis.
So noted that if the government was willing to forego an assured P138 billion in revenues when it decided not to buy the shares in the Malampaya gas-to-power project in favor of Udenna Corporation, it should be willing to bear P24.7 billion in foregone revenues if fuel excise taxes are suspended for one year.
Earlier, the Department of Finance said the government would give up P24.7 billion in excise revenues and another P106.7 billion in incremental income, collected through the Tax Reform for Acceleration and Inclusion (TRAIN) Law, in 2022 if excise taxes on petroleum products are suspended.
“What is P24.7 billion compared to P138 billion foregone revenues? It’s just a drop in the bucket,” So said.
“Why not also allow the suspension of the excise taxes on fuel if it would mean mitigating its debilitating effect on our rice, corn and vegetable farmers, hog raisers, chicken growers, and fishery sector?” he added.
Member organizations of SINAG include the following: National Federation of Hog Farmers, Inc.; Swine Development Council; ABONO Party List ; National Association of Rabbit Breeders; Aqua Farmers Ph; Crocodylus Porosus Philippines (crocodile industry group); Northern and Central Luzon Coconut Farmers; Taal Lake Aquaculture Alliance Incorporated; Confederation of Irrigators Association; Philippine Association of Feed Millers Inc.; Association of Philippine Aqua Feed Millers Inc.;
Northern Luzon Corn Growers Group; Philippine College of Swine Practitioners; Philippine Confederation of Grains Association; Philippine Egg Board; Philippine Veterinary Drug Association; Pork Producers Federation of the Phils., Inc.; Samahang Magtatanim ng Gulay at Sibuyas sa Nueva Ecija; Union of Onion Growers and Traders Association; United Broiler Raisers Association; Fertilizer Industry Association of the Phils.; Fair Trade Alliance; KPD Bataan; KPD Pampanga; Luzon Federation of Sugar Farmers; Mindanao Alliance of Pork Producers; AGAP Party List;
Dugong Alay, Dugtong Buhay; AAI-RUPeL; Alliance of Grains Industry Stakeholders; Arya Progresibo Baguio – NL; Arya Progresibo –Bulacan; Association of Fertilizers and Pesticide Distributors, Dealers and Outlets of Pangasinan; Crop Protection Association of the Phils.; and the Sheep and Goat Industry of the Philippines.