Incoming Senate Minority Leader Aquilino Pimentel III today July 4 refiled a bill seeking an automatic suspension of the collection of value-added tax (VAT) and excise tax when the price of oil hits a high level in the world market.
This was one of the 10 bills filed so far by Pimentel with the Senate Bills and Index office on the first official working day of the Senate and the Marcos administration.
Other senators have begun filing their first 10 bills and resolutions today under an arrangement, giving preference to senior senators based on their tenure in the Upper Chamber.
In the Pimentel bill, collection of excise tax and VAT shall be suspended when the price of oil reaches $80 per barrel or more based on the Mean of Platts Singapore or MOPS.
MOPS is based on the price of petroleum in the country.
Pimentel said that consumers are bearing the consequences of the high prices of petroleum products that, among others, increase transportation costs.
He emphasized that suspension of the collection of taxes on oil would be a load off the shoulders of consumers.
The Marcos administration and even the past Duterte administration are against the suspension of the collection of VAT and excise tax because government needs revenues to finance its programs.
Based on the rules of Congress, all money bills should be taken up first by the House of Representatives before it is sent to the Senate.
A bill needs to be approved by both Houses before it is sent to the President for approval or veto.