The House Committee on Ways and Means is leaning towards the approval of a bill that would suspend for six months the excise taxes on diesel and kerosene and reduce similar imposition on gasoline.
In an initial discussion of six legislative measures containing various proposals for the lifting or reduction of excise taxes on fuel, the House panel agreed to create a technical working group that will conduct a study on the pending bills and resolution and submit its proposal immediately.
Chaired by Albay Rep. Joey Sarte Salceda, the House committee agreed to finalize a bill that would reduce or scrap the excise tax imposition under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
Salceda filed House Bill No. 10348 that seeks to suspend excise taxes on diesel and kerosene from December 1, 2021 to June 1, 2022. The same bill seeks to reduce excise tax on gasoline by as much as P3 per liter.
Deputy Speaker and Cagayan de Oro City Rep. Rufus Rodriguez revealed that Speaker Lord Allan Velasco wants the bill approved immediately.
“So let’s do it before the week is over, on the first week of our resumption of session,” he said.
Rodriguez filed HB 10246 that will suspend excise tax increases on oil products for a period of four years.
Also pending for consideration of the committee are legislative proposals filed by Reps. Michael Defensor (Anakalusugan Partylist); Mark Go (Lone District, Baguio City); Jesus “Bong” Suntay (Fourth District, Quezon City); and the Makabayan bloc.
The proposals were called for first reading and referred to the ways and means panel on Monday night, Nov. 8.
The Department of Finance rejected the proposals as it pointed out that government stands to lose P147 billion annually if excise tax impositions were suspended for a number of years.
However, key members of the ways and means panel appeared not supportive of the DOF stand as they pointed out that the continued hike in oil prices has exacerbated the economic condition of Filipinos who continue to face the adverse effect of the COVID 19 pandemic.
Salceda named the following to the TWG: Reps. Jericho Nograles (PBA Partylist); Sharon Garin (AAMBIS OWA Partylist); Estrellita Suansing (1st District, Nueva Ecija) and Go.
He proposed that the bill should contain provisions that would grant the Department of Energy and the Department of Finance motu propio powers to monitor and investigate pricing activities by petroleum marketers; empower the Department of Budget Coordinating Council to suspend excise taxes if the price of crude oil in the world market breaches $80 per barrel and create the Social Impact Stabilization Fund.
He said the reduction and suspension of excise tax would provide immediate relief to the people.
The DOF said Salceda’s proposal will result in foregone revenues of P37.5 billion. This, Salceda said, can be offset in part by increases in VAT collection due to higher prices.
For his part, Rodriguez said his bill calls for an across-the-board suspension of excise tax adjustments under the TRAIN Law, and not just on certain oil products.
“Let us not be selective. Let us try to help all sectors of the population and the economy. They are all affected by and suffering from the Covid-19 pandemic,” he stressed.
Rodriguez said his bill would benefit all these sectors, including tourism and aviation, which are among the hardest-hit by the pandemic that has forced many airlines to close shop.
“They will benefit, because our proposal would also reduce the tax on aviation fuel and other oil products tourism- and aviation-related businesses are using,” he said.