In case you’ve been feeling the impact of gas prices rising non-stop, here’s some good news: the Ways and Means Committee of the House of Representatives approved a measure suspending the excise tax implementation for certain fuel products.
Amid rising oil prices around the globe, the committee approved to roll back excise tax rates on diesel, kerosene, and liquified petroleum gas. Excise taxes for regular gasoline will also be suspended to ease the burden on tricycle and jeepney drivers, but premium fuels with an octane rating of 95 and above will retain its taxes.
This development follows lawmakers’ proposals to return the excise tax rates to their pre-TRAIN levels. Committee chairman and Albay representative Joey Salceda said that the rates will revert to their current levels once global oil prices stabilize.
Baguio City representative Mark Go, one of six lawmakers who proposed the suspension of fuel excise tax rates, said that relentless fuel hikes have caused basic goods to soar after a continuous increase in prices over eight weeks from August to October this year.
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. The government will lose P45 billion once excise taxes are suspended for six months.
According to Salceda, the lower house will prioritize the bill so it can be transmitted to the Senate before the end of November.