PASAHERO Party-list has added its voice to the growing clamor of stakeholders who want to suspend excise tax on oil products amid concerns that local pump prices would continue to climb in the coming weeks.
According to Allan Yap, the party-list's founder, the proposed suspension of excise tax on fuel products like diesel, kerosene, and liquified petroleum gas (LPG) could somehow help manage the domino effect of soaring crude costs on the prices of basic goods and services.
“The relief to consumers can be easily effected through a suspension of tax on oil products since transport, housing, water, electricity and gas account for a big portion of consumer spending,” Yap said.
He noted that transportation accounts for 7.81 percent of consumer spending, while consumers spend around 22.47 percent for housing, water, electricity, and gas.
“Thus, a suspension on excise tax on select petroleum products can help ease inflation,” Yap pointed out.
House Deputy Speaker and 1-Pacman Party-list Rep. Mikee Romero had earlier laid out a way to suspend such excise taxes by tweaking a provision in the 2018 Tax Reform Acceleration and Inclusion (TRAIN) Act.
But for this to be done immediately, Romero said President Duterte must allow Congress to hold special sessions amid the election campaign break.
Russia’s recent invasion of neighboring Ukraine is causing uncertainties in the world oil market, the main manifestation of which has been the rise of international crude price to above $100 per barrel.
Yap also said his party-list supports the call of some lawmakers for government to consider suspending the 12 percent value added tax (VAT) on oil products, specifically for public utility vehicles (PUV) like jeepneys.
This is not the first time PASAHERO Party-list called for the suspension of fuel excise tax.
Last November, the group joined the growing calls for the suspension of excise tax on fuel products as their prices soared against the backdrop of the persisting coronavirus disease (COVID-19) pandemic.
“Suspending the imposition of fuel excise tax will help Filipino families recover from the hardships of the pandemic,” Yap said.