CONGRESS’ WAYS & MEANS APPROVES SUSPENSION OF EXCISE TAX ON FUEL

November 13, 2021 Headlines

The House committee on Ways and Means approved Thursday, November 11 to suspend the excise tax implementation for certain fuel products, following lawmakers’ proposals to revert the excise tax rates to its pre- TRAIN levels.
The Committee approved to roll back excise tax rates on regular gasoline from P10 to P4.35 and from P10 to P7.00 for premium gasoline, while diesel, kerosene, and LPG will revert from P6.00, P5.00, and P3.00 respectively to P0 over a six-month period.
Regular gasoline is defined as fuel with an octane rating of 91, while premium gasoline are fuels with octane rating of 95 and above. Baguio City representative Mark Go was one of six lawmakers who proposed the suspension of excise tax rates for fuel and petroleum products, after a continuous increase in prices for nine weeks from August to October this year.
During the hearing, Rep. Go insisted that the committee base the rollback of excise tax rates on its pre-TRAIN levels as outlined in House Resolution 2320.
The Baguio solon filed HR 2320, which proposed to immediately suspend the excise tax until fuel and petroleum prices stabilize and return to their August 2021 level. Under the TRAIN law, excise taxes on all petroleum products, including oil and fuel, will increase based on a staggered schedule from 2018 to 2020.
In his resolution, Rep. Go asserted that the relentless fuel hikes have caused regular increases in the prices of basic goods and commodities, adding further financial strain on families and marginalized sectors amid the ongoing COVID-19 pandemic.
Rep. Go argued that the exorbitant fuel prices and the increased cost of other basic goods will double the strain on Filipinos who have lost their jobs in the pandemic.