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Escudero seeks permanent powers for President to deal with rising oil prices
Escudero seeks permanent powers for President to deal with rising oil prices
At A Glance
- Senator Francis "Chiz" Escudero has called on lawmakers to consider amendments to the Tax Reform for Acceleration and Inclusion (TRAIN) Law and grant the President permanent powers to deal with rising oil prices.
Senator Francis “Chiz” Escudero has called on lawmakers to consider amendments to the Tax Reform for Acceleration and Inclusion (TRAIN) Law and grant the President permanent powers to deal with rising oil prices.
Escudero noted that the current safeguard in the TRAIN law or Republic Act No. 10963 is “too narrow” and requires specific conditions before excise taxes can be suspended.
The senator said amending the TRAIN Law will empower the President to suspend or lower excise and value added tax (VAT) on fuel whenever global oil prices exceed the benchmark assumptions for Dubai crude.
“The law should be amended to automatically give the President that power to suspend or lower excise and VAT rates when prices exceed the estimated range of Dubai crude oil based on the BESF, which guides government budget assumptions,” Escudero said.
The lawmaker is referring to the government’s Budget of Expenditures and Sources of Financing (BESF)
He said a broader amendment is needed to ensure faster relief for consumers during oil shocks caused by force majeure events such as wars or global crises.
The veteran legislator shared that this has always been his position to grant the President automatic authority to suspend tax impositions to protect the public from sudden fuel price increases.
“Government cannot enjoy windfall in excise taxes at the expense of the public because of the increase in prices brought about by force majeure,” Escudero added.
Earlier, President Ferdinand “Bongbong” Marcos Jr. announced that he will ask Congress for emergency powers to reduce excise taxes on petroleum products if Dubai crude exceeds $80 per barrel.
The move was envisioned to help protect the Filipino people from impact of rising global oil prices.
But while the President’s request for emergency powers is a step in the right direction, Escudero said a permanent amendment would be more effective.
“We should not wait for every crisis to pass through Congress before action can be taken. The law must already provide the President with the automatic authority to act when conditions demand it,” he stressed.