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Manila Bulletin devider Philippines devider National devider Solon backs House call to suspend fuel excise tax

Solon backs House call to suspend fuel excise tax

Published Feb 27, 2022 01:30 pm

House Deputy Speaker and Bagong Henerasyon Rep. Bernadette Herrera is in support of the House’s call for a special session to legislate the suspension of excise taxes on petroleum products following the rapid increase of fuel prices.

Bagong Henerasyon Rep. Bernadette Herrera

Under the 2018 Tax Reform Acceleration and Inclusion (TRAIN) Act, the production, sale, and distribution of petroleum products in the Philippines is subject to excise taxation.

“If it is really necessary and President Duterte calls for it, we are more than willing to take part in the special session with the end goal of providing much-needed relief to our people amid unstoppable rise in crude prices,” Herrera said.

“The higher costs will be passed on to ordinary consumers who have no choice but to deal with rising prices of food, electricity, water and other goods and services,” she added.

According to Herrera, should the Congress be able to suspend fuel excise tax, fuel prices could go down by P6 per liter for diesel, P10 per liter for gasoline, P5 per liter for kerosene, and by P33 per 11-kilogram tank of Liquefied Petroleum Gas (LPG)

However, as per the 1987 constitution, only President Rodrigo Duterte has the authority to call a special session of Congress during the House recess held in respect to the upcoming elections.

Congress and Senate will not convene until after the 2022 elections on May 9.

Amid the coronavirus pandemic (COVID-19) and Russia’s invasion of Ukraine, the price of crude has skyrocketed all over the globe resulting in massive price hikes for fuel in the Philippines.

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