Gov’t to suspend Tranche 2 of fuel excise tax in January 2019
MANILA, Philippines – The Department of Finance (DOF) has announced the temporary suspension of the second tranche of fuel excise taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) in view of the further rise in oil prices next month.
Supposedly, TRAIN would add another P2.00/liter to the cost of gasoline and diesel effective January 2019.
In a statement, the DOF confirmed that the Duterte administration’s economic managers already submitted their recommendations to President Rodrigo Duterte following consultations from the Senate and House leadership.
“Ipinapahayag po natin ang isang agarang announcement ng temporary suspension ng pagtaas ng oil excise sa Enero 2019, alinsunod sa TRAIN Law. Ginagawa po itong early announcement, dalawang buwan bago nakasaad sa batas, para maibsan ang inflationary pressure at mapabuti ang kalagayan ng sambayanang Pilipino,” DOF said in a statement.
The agency explained that based on the provision of TRAIN Law, if the price of oil continues to rise to more than $80/barrel in three consecutive months, the government will need to suspend the implementation of excise tax increase in 2019.
This, despite the government having around P40B in revenue loss from taxes.
The DOF said the government is still giving utmost consideration to the Filipino people who are suffering the burden of high prices of basic goods.
Nevertheless, the agency said President Rodrigo Duterte is personally monitoring the price of oil in the global market as well as the price of other basic commodities.
The DOF said such measure is one of the options that the government is considering to alleviate the impact of inflation to the Filipinos.
“Malinaw sa presyo ngayon at sa futures market na lalagpas tayo sa threshold at ito ang basehan nitong agarang anunsyo ng gobyerno. Tuloy-tuloy naman ang mga aksyon ng Administrasyong Duterte para paramihin ang supply ng mga pangunahing produktong agrikultura para bumaba ang presyo ng pagkain sa ating mga pamilihan,” the announcement read further. – Marje Pelayo (with reports from Rosalie Coz)
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