Senatorial candidate and incumbent Sorsogon Governor Francis “Chiz” Escudero has urged the government to channel all collections from taxes on fuel to a more substantial aid package for struggling households.

Instead of the measly P200 monthly allowance, Escudero said Congress should pass a supplemental budget to ensure that excise tax revenues—projected to reach P105.9-billion this year—would only be used to assist Filipinos most affected by the oil price hikes.

“Since the government does not want to suspend the collection of excise taxes on petroleum, then the least it can do is provide financial assistance that will make a difference for poor families,” Escudero said in a statement on Tuesday, March 29.

“Because P200 per month is nothing but a token for officials to be able to say they did something,” Escudero, who once chaired the Senate finance panel.

Aside from the excise tax on fuel under the Tax Reform for Acceleration and Inclusion law, he pointed out the government also collects a 12 percent value-added tax (VAT) on petroleum products.

From January-February, he noted revenue from excess VAT was P3-billion, and it is projected to reach P20-billion this year with the Dubai crude oil prices at $100/barrel. Crude oil is now $120 per barrel.

“It’s not right for the government to make money on the backs of its already burdened populace and then to distribute only crumbs to the people who are paying the price for a deregulated oil industry that has allowed oil companies to easily raise fuel prices,” said Escudero, who is seeking a Senate comeback in the May 2022 elections.

He further said the revenue from all taxes on fuel should provide for people’s needs. It is also imperative for the public to hold the government accountable.

“This is why I’m pushing for a supplemental budget based on these tax collections. We do not know how long we will live with the impact of these oil price hikes,” Escudero said.

Last March 23, the Department of Budget and Management (DBM) announced it would give P500 monthly allowance to the bottom half of the population for the first three months but that aid would revert to P200 monthly for the next nine months.

The agency has also earmarked P3-billion for fuel subsidy to transport and agricultural workers but rejected calls for the suspension of excise taxes on fuel.

The government said the P3-billion for fuel subsidies in the General Appropriations Act (GAA) will benefit 377,443 public transport drivers, receiving P6,500 each, and 79,000 beneficiaries, receiving P6,329 each.