President Marcos remains not keen on suspending the value-added tax (VAT) on petroleum products, citing the "windfall" revenue it generates as a source of funding for response efforts amid the Middle East crisis.

In a Palace briefing on Monday, April 13, Marcos finally elaborated on the reasoning behind his decision not to suspend the VAT, opting instead to adjust the excise tax.

"I think it's time to explain…You know, here's the thing with the VAT. Especially the VAT on oil, on petroleum products. The VAT on petroleum products, we are going to get a windfall profit from that because tumaas yung presyo ng krudo (the price of crude increased), Marcos said.

"And because of that, all the importations we will have at the present VAT rate, we will get extra funds from that," he added.

He stressed that "if we take away the VAT on petroleum products, it will only help the petroleum market."

The additional fund that would be generated from VAT collections will be used to help the entire society, the President said.

"That fund will not exist if we remove the VAT on petroleum products alone. So, that is – that’s the reasoning behind," he further said.

However, if time comes that VAT would really have to be reduced or suspended, the government will "certainly study it very well," according to Marcos.

"We will still examine it. You know, like I keep telling you– there is nothing that we are not looking at as a possible option. We are looking at all the options," the Chief Executive said.

"If the time will come that VAT should be brought down for whatever products, then we will certainly study it very well," he added.

Marcos also said that the cost-benefit analysis between VAT collections and the benefit to ordinary people, "still favors that we collect VAT and we use the extra funds to provide the subsidies."