DOF backs excise tax relief on LPG, kerosene, but not diesel or gasoline
Finance Secretary Frederick Go says broader relief could cost P12 billion a month in lost revenue.
Finance Secretary Frederick Go has signed a resolution to suspend excise taxes on liquefied petroleum gas and kerosene, but not on diesel or gasoline, amid rising oil prices. The decision, revealed during a Senate budget hearing on September 22, was made following a request from Senator Bong Go for ways to ease the burden on consumers.
The move mirrors actions taken during the first round of the Middle East War. However, the resolution requires President Ferdinand Marcos Jr.'s approval before taking effect. The law permits the suspension of excise taxes on specific petroleum products upon recommendation of the Development Budget Coordination Committee in coordination with the energy secretary when Dubai crude price reaches or exceeds $80 per barrel for a month.
Dubai crude averaged $99.41 per barrel from August 13 to September 11, meeting the threshold. The tax relief would be valid for up to three months. The economic team has not recommended suspending excise taxes on diesel and gasoline due to concerns about progressive benefits and potential revenue loss of P12 billion monthly.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
